Background info - for the past twenty years, I used to work remotely and part-time in the UK but that has coincidentally (and possibly, conveniently) dried up, just as I move permanently to France, so I am a retired person.
I become tax resident in France this year, and will be making my first tax returns in France (pension etc) in Spring of 2027.
I am thinking of turning a craft hobby into a very small sideline, probably with sales less than (I guess) €5k per year but giving me an extra interest.
I’ve asked the ‘fountain of all knowledge’ (Google AI Mode - yes I’m being facetious) and it very kindly encouraged me to go ahead, to get an S1 as soon as possible, get it validated by CRAM and take that and some more documents to the Chamber of Metiers and get myself registered.
It tells me that, at my predicted low level of sales, I would not have to pay social contributions, and would be taxed at something like 12% on my sales (as distinct from ‘profit’) - so if i have no sales I don’t pay any tax. This all seems very positive as, while I’m not trying to make a living from it, I’m equally not planning on it being a money-pit, in a bad way, that is.
According to Google AI, being small scale as outlined above made things simple and much easier to manage in terms of bureaucracy - the first time I’ve heard that about doing business in France.
Don’t rely on anything you read online is my advice after having a building firm for over 20 years in France where we never actually made much profit as everything went into social charges, taxes and employees charges but those did help me after being widowed suddenly and all those compulsory payments helped me financially as does the pensions now OH had to pay into.There are a lot of hidden charges that can crop up so to be honest I would go to the Chamber de Mètiers and ASK for their advice, it was always free and you could usually get seen straightaway. URSSAF is the big one that comes after payments whether its health, social or business cotisations and just because you make no profit, don’t assume you will not pay any charges etc, it does not work like that here. Just don’t take everything online for granted.
I would tend to agree with these comments as the bureaucracy can be tough…though if you find you just need micro entrepreneur these are now reasonably easy to set up online
One further point…what type of visa do you have? If its a visitors one be very careful as you are not supposed to work…
Thanks @Shiba for the advice. Do you think it would be less complicated for a single person working only a few hours a month?
I have an EU passport so don’t need a visa to be here as such, but I understand that I need an S1 to work here. I’m still learning the ins-and-outs of this . . . .
I would think ME - Micro Entrepreneur would be the way to go but…you may have to forgo your SI as you could end up paying social charges for health and pension rights and then France would be your competent state but again, not having been in such a set up (we had three employees so different régime and status) you need to find out if that could happen and then decide if its worth the aggro because of that problem as in the eyes of the fisc and other authorities you will be working and earning money however little it may be. Get the official advice from the CdeM as times have changed since we started out in 94 and that was very strict back then
Therein one of the traps where you need to be careful and check things out as Shiba noted.
An S1 applies if another member state (eg Republic of Ireland) is picking up your medical bills typically if you are retired - other case being if your employer moves you here. If you are retired and then start working and paying taxes and social charges here then (a) this may invalidate the s1 and (b) your social charges could be a lot higher on all your income. So you may find your profits are more than outweighed by social charges on your pension.
I agree with Paul, EU social-security rules generally say that you become subject to the social-security legislation of the country where you actually work. And setting up a business is work.
So you would no longer be entitled to your S1 as others have said. But a caveat is that if you stop your ME activity as long as you have not built up trimesters for a French pension you should be able to get your S1 back.
You may see people happily selling craft goods online via vinted or etsy. Be aware that if the have more that 30 transactions a year/€2000 (check level) then the site reports this to the fisc. Who can go after you for travail dissimulée, which is not funny.
The only way I’ve heard of people getting round this is to set up an association with profits go8ng to a good cause.
Don’t you have 4 pets? Sounds like an association to provide for their welfare…
As others have said I would be very, very wary about losing your S1 or counting on getting it back.
I would still really like to know, if anyone does know whether if in retirement / on state pension from the UK with an S1, do you lose the S1 if you pick up work after retirement.
But we know that’s not your situation Mike313, as you are still a spring chicken
As several people have said, it is virtually impossible to work in France without being employed or self employed. And France then becomes your competent state, so S1 from UK becomes invalid.
