I’m new here, so I hope this is ok to post…
I’ve recently moved to South France with my wife (no children). I’m registered as a Self-Employed Website Designer, and everything has been setup for my tax as a Micro-Entrepreneur.
However, I am getting conflicting (and confusing!) reports on how much tax I should be putting away. I’ve used various online calculators, but even they are throwing out different percentages at me.
I’m aware of the CFE tax, and think I’ve got that worked out, but totally confused on the social charges AND income tax - are they the same thing or different?
I think I’ve worked out that because I’m a service, I have to pay around 22% social charges (I’m paying per month). I also have opted for the Pay as you Earn thing where it adds 2.2% on top. That’s where my confusion comes in. At the end of the year, do I have to still pay any income tax, or have I paid that alongside my Social charges? I’ve read horror stories of people saying be prepared to pay 50% tax or more…
But the way I’m working it out, I’m more likely to be around the 20-30% overall tax (social charges + income tax + CFE).
Any help would be hugely appreciated on what percentage I should be putting away, as 50% feels like a LOT! I guess I’m really looking for a bottom line: Put away x% for tax, maybe with a dumb-dumb explanation of why. FYI I earn between €50-60k per year.