Thanks Fabien for understanding, it’s a difficult time.
And yes Macron is “une histoire à suivre”…
Best wishes
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Hello everyone! Great discussion and warm support from several people.
I was wondering if you could help me find my way on the French taxation system.
I have moved to Paris on August 30th this year and just got an offer to work from home by a company located in Sweden, starting on Jan 2018.
I am married with 2 children and my wife has no income.
The work is basically to provide technical sales services as a consultant.
The offer in the table is EUR 77000 per year and so far my plan is to register myself as auto entrepreneur (I know is the old name).
Would that be the best cost-effective way to do it?
Can I also rely on the 50% allowance when calculating my taxes?
I also heard something about a tax reduction for new business in the first 5 or 8 years. Is that right?
Regards,
Leonardo,
(just seen how old this post is lol) (I really should look closer lol)
all depends on what business your doing but for all Immigrants here it is the easiest way into the system unless you come here with a job from a big company.
when you look to register they will tell you what your cap is but doubt anyone would break cap in first year of business for 99% of business ventures.
There are also grants available and tax breaks for certain types of business. first year 5% tax then 11% and then 18% for first 3 years, depending what you earn.
often people are tempted to cook the books but if you sure caught they will go through everything with a micro nit comb so better to say legit (im sure you would anyhow)
There are quite a few places that hlp with setting up ME as AE no longer exists as of 2016
if your working for another company you might not get tax breaks. check it all out with local offices. I take it your being paid untaxed money already as if your contracted by them im not sure you can become a ME.
Might well be worng but best ask someone like @fabien
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Hi, unfortunately Micro Entreprise won’t cut it because even with the new limits the maximum turnover is 66.400e. For that amount you’ll have to go for an Entreprise individuelle and you’ll have to charge the VAT (but they’ll be able to claim it back). If they have a VAT number you can send them invoices VAT free directly but they should declare it on their side.
You’ll still have to pay social taxes on your revenues + national taxes. Social taxes are about 40% and national taxes in your case will probably be 14% or perhaps even nothing.
Kind regards,
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If a company is offering you a salary for full time work, then they are employing you.
Employment is being offered work by a company at a salary set by them, accepting it, and then working for that company.
Self employment is forumulating a business plan, setting up a business to provide a service or product, and finding clients, by advertising, by promoting yourself, by bidding for work. You set your own fees/prices which clients accept or not, and you send out invoices/issue receipts on delivery.
In France, trying to pass yourself off as self employed when in fact you’re working for an employer, is classed as salariat déguisé and is treated as fraud. It may be different in Sweden but if you’re living and working in France, you’re subject to French rules. And if the only money coming into your bank is a regular payment from one “client”, it won’t be difficult for URSSAF to pick up on if they look.
If this company wants to employ you to work from home in France, they need to give you an employment contract and pay full social security contributions for you. Alternatively, set up a different business regime where the business and you are separate entities, and you are employed by your company.
https://www.federation-auto-entrepreneur.fr/actualites/autoentrepreneur-et-lien-subordination-faux-independant-et-salariat-deguise gives good clarification on salariat déguisé. There are a lot of urban myths about what it is, eg “if you have one client it’s salariat déguisé, if you have 2 clients it’s ok” but these are rubbish. It basically hinges on the relationship between contractor/employee and client/business - who decides what you do, who is responsible for the ultimate outcomes in business terms. In practice it’s not difficult to distinguish between someone who is running their own business with all that that entails - fluctuations in income, strategic planning to achieve sustainability and maximise profitability, budgeting for investment and overheads (which is why you have an allowance built into micro-entrepreneur) - and someone who is working for their employer’s business while the employer takes all the business decisions.
Hi Fabien, thank you for your reply.
I am actually looking for advice on that.
The offer is to be a contractor and they would prefer to pay directly to France since I am based there.
I will work from home.
What would be the best and cost effective way for me to pay taxes in France?
I am an Italian citizen but also Brazilian and I do have a company in Brazil that I have used in the past for same purpose, while living there.
I know there are some agreements between Brazil and France but I prefer to pay taxes in France since I have a long term plan for staying there.
What do you suggest?
I am open for paid consultation on that so perhaps you could refer someone that seeks English.
Thanks and regards,
Leonardo.
Hi again!
Since I have 2 children, wouldn’t the limit be around 80K EUR for ME?
Or you could look into using an umbrella company, “portage salarial” in French.
eg
https://www.freelanceinfrance.com/
Hi Anna, thank you for your response.
The offer is to be a contractor, so I need either to be a ME, have my own company in France or use an umbrella company.
I will work from home in France because I am living there.
BR,
Leonardo.
HI, unfortunately I’m not knowledgeable enough for doing pro consultations but I’m sure you’ll be able to find some professional advisors on SFN?
What’s for sure is that the limit for Micro Entreprise will be same whatever your situation (single, married, with or without children).
What Anna suggest is a good alternative though (even if you’ll pay the regular social taxes then which is roughly 80%).
Kind regards,
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You could have a word with the umbrella company I linked to. I emailed them for advice when I moved here and they were very helpful - didn’t charge for the information they provided, and in fact they advised me that although they’d be happy to help me, it would be more beneficial to me to set up as self employed.
The problem with what you are suggesting is that French labour law is very strict, and normally you will not be regarded as a self employed contractor if you provide services year in year out to one company in exchange for an annual salary. Regardless of what the company calls it and what you call it, URSSAF would call you an employee. That’s just how it is. Self employment is therefore not an option.
Using an umbrella company would be less hassle for you than setting up your own company. The social taxes will be the same. You would pay their admin fees instead of company taxes. It would probably work out around the same, and that being the case, personally I would use the umbrella company because you would have the benefit of their advice and guidance.
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Hey all. Good to see folks still jazzed up about this topic and the awesome @Anna and the fabulous @fabien are still weighing in with thoughts and guidance.
After a jump over the Atlantic and a summer bopping through Spain and Portugal, I am now in France and trying to figure out how to structure everything for 2018. There are so many options I’m exploring from AE all the way through to offshoring that I have zero clues which direction everything will all take.
All I sure of is that from threads like this and conversations with other like-minded folks the picture is becoming a little less blurry.
Cheers all and Bonne Nouvelle Anne! (I’m sure I forgot some accents in there, hah)
Bonne année to you too and your Family!