Contracting in France
Comprehensive contracting arrangements for working in France, a key European economy with excellent infrastructure and diverse business opportunities.
Contracting in France with City Traders
Official Language
French
Major Business Cities
Paris, Lyon, Marseille, Toulouse
Currency
Euro (€)
Tax Year
January to December
Key Industries
Finance, Technology, Tourism, Aerospace
Corporate Tax Rate
25%
Introduction
France is a country in Western Europe bordered by Belgium, Luxembourg, Germany, Switzerland, Monaco, Italy, Andorra and Spain. It also has coastlines on the Atlantic Ocean and the Mediterranean Sea, making it a strategic location for international business.
As the seventh-largest economy in the world and the third-largest in Europe, France offers numerous opportunities for contractors across various sectors. Paris, the capital, is a global hub for finance, fashion, and technology, while other major cities like Lyon, Marseille, and Toulouse are centers for industries ranging from pharmaceuticals to aerospace.
The French economy is diverse, with strengths in manufacturing, tourism, luxury goods, and agriculture. In recent years, France has also emerged as a growing technology hub, with initiatives like "La French Tech" supporting startups and innovation. This economic diversity provides contractors with opportunities across many sectors.
While French is the official language and is essential for daily life and administrative purposes, English is widely spoken in international business environments, particularly in larger cities and multinational companies. The country has a strong social welfare system, excellent infrastructure, and a high quality of life, making it an attractive destination for international contractors.
Registry/Registration
For EU/EEA citizens, there is freedom of movement, allowing you to live and work in France without a specific work permit. However, if staying for more than three months, you should register your residence with local authorities.
Non-EU/EEA citizens generally need both a residence permit and work authorization. For skilled contractors, the Talent Passport (Passeport Talent) is often the most suitable option, providing a combined residence and work permit valid for up to four years. This permit is designed for qualified professionals, entrepreneurs, investors, and company directors.
Once legally resident in France, contractors need to register their business activity with the appropriate authorities. This typically involves:
- Registration with the Centre de Formalités des Entreprises (CFE)
- Obtaining a SIRET number (business identification number)
- Registration with URSSAF (social security agency for self-employed)
- Registration with the tax authorities
The exact registration requirements depend on your chosen business structure, with the Micro-Entrepreneur regime offering the simplest setup process, while corporate structures like EURL or SASU require more extensive documentation and potentially notary services.
Income Tax
France has a progressive income tax system with rates ranging from 0% to 45%. Tax is calculated on a household basis rather than individually, with income split into portions (parts) depending on family situation, which can result in tax advantages for married couples and families.
Income Tax Brackets (2024):
| Annual Income (EUR) | Rate |
|---|---|
| Up to €11,294 | 0% |
| €11,295 - €28,797 | 11% |
| €28,798 - €82,341 | 30% |
| €82,342 - €177,106 | 41% |
| Above €177,106 | 45% |
Note: Tax brackets are subject to annual adjustments. A supplementary contribution for high incomes may apply to taxpayers with very high incomes.
For Micro-Entrepreneurs, a simplified tax regime applies where you pay a percentage of your turnover that includes both income tax and social charges. Alternatively, you can opt for the standard income tax regime.
If operating through a corporate structure like SASU, you'll pay corporate tax on company profits (standard rate of 25%) and personal income tax on any salary or dividends you draw from the company. Dividend distributions benefit from a 40% tax allowance, making them potentially tax-efficient for higher earners.
France also imposes a wealth tax (Impôt sur la Fortune Immobilière) on real estate assets for residents with property worth over €1.3 million.
Social Security
The French social security system (Sécurité Sociale) provides comprehensive coverage including healthcare, pensions, family allowances, and unemployment benefits. Contributions are mandatory for all workers, including self-employed contractors.
Self-employed individuals pay contributions to URSSAF, with rates varying according to your business structure and income level. For Micro-Entrepreneurs, social charges are included in the flat-rate payment (typically 22-25% of turnover). For other self-employed structures, social charges are calculated based on your professional income and can range from 35% to 45%.
If operating through a corporate structure and drawing a salary, both employer and employee social security contributions apply. Employer contributions are significant (approximately 42% of gross salary) while employee contributions amount to around 22% of gross salary.
These contributions provide access to the French healthcare system, which is ranked among the best in the world, as well as building entitlement to a French state pension and other benefits. After three months of residence, you and your family members can register for health insurance coverage (Assurance Maladie).
Business Structures
France offers several business structures suitable for contractors, each with different implications for liability, taxation, and administrative requirements:
Micro-Entrepreneur
Previously known as Auto-Entrepreneur, this is the simplest structure with minimal accounting requirements but subject to turnover limits (€72,600 for services). Social charges and income tax are calculated as a percentage of turnover.
Entreprise Individuelle (EI)
A sole trader structure without turnover limits but with more complex accounting requirements. The owner has unlimited personal liability for business debts.
EURL (Entreprise Unipersonnelle à Responsabilité Limitée)
A single-member limited liability company that separates personal and business assets. More complex to establish and administer but offers better liability protection.
SASU (Société par Actions Simplifiée Unipersonnelle)
A simplified joint-stock company with a single shareholder. Offers flexibility in governance and potentially favorable tax treatment as the director can be an employee of the company for social security purposes.
The optimal structure depends on your expected turnover, liability concerns, tax situation, and long-term business goals. For contractors starting out or with lower turnover, Micro-Entrepreneur often provides the simplest solution, while established professionals with higher earnings may benefit from the tax planning opportunities of corporate structures like SASU.
Banking in France
Opening a business bank account is a practical necessity for contractors in France and is legally required for certain business structures. Major French banks include BNP Paribas, Société Générale, Crédit Agricole, and online banks like Boursorama and Hello Bank.
To open a business account, you'll typically need to provide:
- Proof of identity (passport or ID card)
- Proof of address (utility bill, rental agreement)
- Business registration documents (Kbis extract or confirmation of Micro-Entrepreneur status)
- SIRET number
- Residence permit (for non-EU citizens)
Traditional banks typically charge monthly fees for business accounts, while some online banks offer free options with certain limitations. Many banks also require an initial deposit when opening the account.
For international contractors, it's worth considering banks with good multi-currency capabilities and favorable international transfer rates. Some online banks and fintech companies like N26, Revolut Business, or Wise Business offer competitive alternatives to traditional banking for contractors working across borders.
City Traders and Contracting in France
At City Traders, we provide comprehensive support for contractors establishing and managing their business activities in France. Our team understands the nuances of the French regulatory environment and can help you navigate its complexities.
Our bilingual experts can bridge the language gap, helping you understand official communications and ensuring accurate completion of French administrative forms. Whether you're looking to establish as a Micro-Entrepreneur or set up a more complex corporate structure, we can guide you through each step of the process.
We also stay current with France's frequently changing tax and regulatory landscape, ensuring your business remains compliant while maximizing legitimate tax planning opportunities.
France vs Other Contracting Markets
Compare key aspects of contracting in France with other popular international markets. See how France compares in terms of taxation, business setup speed, and operating environment.
Quick Contracting Markets Comparison
See how France compares to other popular contracting destinations
| Metric | France | United Kingdom | Germany | Netherlands |
|---|---|---|---|---|
Corporate Tax Rate Standard corporate tax rate for businesses | 25% | 25% | 15% + 5.5% solidarity | 15-25.8% |
Fast Company Setup Ability to establish a business entity quickly | ||||
Self-Employed Structure Availability of sole trader/self-employed status | ||||
Umbrella Company Option Availability of umbrella company services | ||||
VAT/Sales Tax Rate Standard VAT or sales tax rate | 20% | 20% | 19% | 21% |
English Business Environment Ease of doing business in English |
Data updated: April 2025
View full comparisonRequirements Checklist
- Residence permit (non-EU) or registration (EU citizens)
- Business registration with CFE (Centre de Formalités des Entreprises)
- Registration with URSSAF (social security organization)
- Tax registration with local tax office
- French bank account for business transactions
- Professional insurance (often mandatory depending on your profession)
- VAT registration (if turnover exceeds €34,400 for services)
- Certificate of incorporation for limited companies
Need Assistance?
Our France contracting experts can provide personalized guidance for your specific situation.
Get Expert AdviceFrequently Asked Questions
What is the 'Auto-entrepreneur' status in France?
The auto-entrepreneur (now called micro-entrepreneur) is a simplified business status for freelancers and independent contractors in France. It offers reduced administrative requirements, simplified accounting, and lower social charges based on actual earnings rather than fixed contributions. It's ideal for those with revenue below certain thresholds (€72,600 for services or €176,200 for sales activities).
Do I need to register for VAT in France as a contractor?
VAT registration in France is mandatory once your annual turnover exceeds €34,400 for service providers or €85,800 for commercial activities. Below these thresholds, you're exempt from charging VAT (franchise en base de TVA). However, you can also opt to register voluntarily if you want to reclaim VAT on business expenses.
How does social security work for self-employed people in France?
Self-employed individuals in France contribute to the RSI (Régime Social des Indépendants) or now URSSAF for social security. The contributions typically amount to approximately 45% of your income and cover health insurance, retirement pension, and family benefits. Micro-entrepreneurs pay reduced rates (around 22-25% for services) calculated directly on their turnover.
What are the different business structures available for contractors in France?
The main options are: 1) Micro-entrepreneur (simplified sole trader), 2) Entreprise Individuelle (standard sole trader), 3) EURL (one-person limited liability company), 4) SASU (simplified joint-stock company with a single shareholder), and 5) SAS (simplified joint-stock company). Each has different tax treatments, liability protections, and social security implications.