Hello to all,
I am trying to navigate all the information in the web on how to plan my upcoming move to France. I am working for a company in Germany who would be willing to let me change my contract into a Freelancer contract, working remotely from my new home in France instead. In order for me to calculate how much I would have to earn to survive in France I need to figure out the percentages of the tax payments and social charges.
Background: I used to be self-employed in Germany and am used to tax declarations and a lot of paperwork and I have managed to find out that Micro enterprise would give me most benefits and least tax charges in France based on my current gross salary BUT I cannot figure out income tax. I read somewhere 24 percent?
Given the facts that I would earn less than 30K a year before taxes, I am single person, working from home primarily and after 3 months would try to get into the CPAM, how much would I have to put aside for taxes and social charges?
Last question, do I have to pay taxes up front or do I pay after the tax declaration after my first year as I have done in Germany?
I am at a loss and I hope to get some insight or guidance from all the clever people here. 
Warm greetings from Berlin
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Fabien just posted this useful link in another thread:
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Just a heads up - France is notoriously intolerant of “disguised employment”. The fact that you work remotely doesn’t automatically mean that it will recognise you as a freelancer as opposed to an employee; what it looks at, is the relationship. But I believe Germany is also quite rigorous about this so I imagine you know what you’re doing.
Thanks a lot for the heads up. Germany is just as intolerant to this. I will try to find a legal way around this. In Germany this meant to take on one or two more smaller projects a year.
Thanks a lot. This will bring me a step further for sure.
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https://www.service-public.fr/professionnels-entreprises/vosdroits/F1691
might help.
Taking on a few other projects wouldn’t necessarily be the answer because each relationship would be looked at separately to see if a “lien de subordination” exists.
But it would be less likely to be flagged up if your income varies month to month (if you receive the same income month in month out, it looks a lot like a salary).
Alternatively you could do it by the book and your employer could register you as a French employee and pay social security. After all the rules are there to protect the worker - as a disguised freelancer your contract could be terminated at any time, your employer would owe you nothing and you would have no social protection. How much confidence do you have in your employer?
In a nutshell assuming you register as Liberal Professional - your Social Security is 22% of total earnings from the first penny. Thats declared and paid every 3 months
Tax that’s at whatever tax rates are in force - no allowances under AE. That can be paid as you go - or once a year still for AE. Tax rates are easy to find
It is worth remembering there’s no such thing as expenses - make sure the client pays for hotel rooms/travel otherwise you end up having to stick 30% on to cover tax/social charges.
https://www.service-public.fr/professionnels-entreprises/vosdroits/F23267
explains your 2 options for income tax.
In most cases you can opt to pay at a fixed percentage of earnings (versement libératoire), or you can pay according to the normal barème (via prélèvement à la source), whichever would be most beneficial to you (depends on other income, family situation etc).
They still do my tax as a one off - zero prevelement. My income is unpredictable and comes from various streams - but there is a tax bill and its not tiny. I was surprised - and I guess my case is odd
You are all awesome. Thanks a million for the help and suggestions.
My employer will probably not employ me normally across the border, since they are a German company but my boss is still researching the different scenarios on her end as well. But we still have to discuss all options. I just wanted to know how much I would earn if I invoice my work to my employer, what my options are. Because not moving is not an option for me.
Do any of you use service providers that help out with the accounting and tax part? I read something about this, where I would pay 10%?
URSSAF has special arrangements in place for foreign employers that employ French residents.
The guide is available in French and English, not sure if there is a German version but the process is the same for all foreign employers.
https://www.urssaf.fr/portail/files/live/sites/urssaf/files/documents/5015-GuideCNFE-UK-2017.pdf
Do mean portage salarial companies? eg https://www.freelanceinfrance.com/
That may be a better option in your situation because it would give you full social protection, but of course it would involve paying higher contributions than micro entreprise.
If you meant, help with accounting for a micro entreprise - the whole point of the system is that it’s so simple you don’t need to pay an accountant. As Chris said, you can’t deduct any expenses so you need to keep outgoings as low as possible, otherwise ME is not the right regime for you.
Wow, okay. Will forward this to my employer and read it thoroughly. Thank you @anon27586881
Or do you mean a accountancy management centre?
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