New Business set to employ staff - How does paying income tax differ and is it more costly than in UK

We are looking at the prospect of running a business in France within the Hospitality and Corporate sector.

We are also considering employing staff to help manage a complex but we have heard that French employees have many rights, I believe I read that they are entitled to 13 months salary and 5 weeks paid holiday and as the Employer I have to pay anything from 40 to 60% towards Social Benefit Contributions.

Could someone experienced in this area please confirm the above or give further insights as I would of thought a new business would obtain some tax advantages in its early stages; also any information on sub contracting from a taxation perspective would also be very much appreciated.

I really think you need to be asking those questions to an expert specialising in setting up businesses in France rather than on an Anglophile forum. Those are basic questions that a serious business person would need to get a grasp of very early in the planning process.


You really do need to get proper advice. French employment law is complex, you need to know about contracts, collective bargaining agreements, payslips, etc etc etc. Then, if you provide onsite accommodation it has to comply with certain specific requirements. There are firms that specialise in this, google something like cabinet conseil droit social.

Or better yet, an accountancy firm that also manages employee pay - there are many such firms. You don’t mention how good your French is, so finding one that speaks English to a degree sufficient to explain the subtleties of French employment and social law might be a challenge, depending on where you want to be based.