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I don't understand. What does the sentence mean? Is she still living in Paris or has she moved out?

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The grammar of this sentence (present perfect) suggests that she no longer lives there.

"Sara has lived in Paris" - at some point in time (we don't know for how long, or when it was) Sara lived in Paris. The experience of living in Paris has now finished, thus the sentence describes a past experience, rather than a present reality which would be described via the present simple ("Sara lives in Paris").

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