Not everyone who relocates to France can afford to retire. Meaning, on top of navigating the complexities of moving abroad, there is the added challenge of setting up as self-employed and staying on the right side of France’s complex labour laws.

Despite the challenges, the payoff for setting up as a self-employed person in France can have huge benefits. You have the freedom to choose your clients, hours and working conditions. And, depending on the nature of your work, it may help you meet people locally.

Self-employment rules in France

The first pertinent point is that some professions are strictly regulated. These will require both French professional certifications and qualifications. As well as in some cases, authorisation from government bodies to practice. So, for instance, if you decided to become an estate agent, you would need to obtain a license first. Take a look through this comprehensive list of regulated businesses to see if your trade is covered.

Secondly, you must have the right to work in France. Sadly, Brexit has changed certain rules. Making things substantially harder for British people relocating to work. Those fortunate enough to have entered France with the intention of working prior to Brexit, can legally do so with relative ease through their Brexit Withdrawal Agreement Residence Permit (WARP).

While the easiest route to apply for relocation is the “carte de séjour visiteur”, this particular visa grants you no rights to work in France. When relocating with the intention of self-employment, you must apply for a “carte de séjour entrepreneur/professional libérale”. And you need to get the visa before relocating. Part of the application is a business plan illustrating a financially viable business, showing how your business will fulfill the minimum income requirement. This currently stands at €21,621.60 as of November 1, 2024. Find more detail on Business France.

Ensure you aren’t a challenge for overseas clients

What if my clients are based elsewhere?

The most important rule of working in France, is that when physically working in the country, you must pay both taxes and contributions in France. Regardless of where your clients are based. A common misconception is that relocating to France is purely a matter of ensuring that your current employer grants you permission to work remotely from France. This is not the case.

You may also find that companies based outside of France will be reticent to contract you because of the added challenge of paying someone based in France. Employers are required to pay social contributions for workers based in France under French Labour laws regardless of where the company is based. They are also obliged to ensure their workers have the correct visas and the right to work in France. It is also important to note that France does not currently recognise the “digital nomad” status, unlike some other countries.

While the above shouldn’t apply to someone who is self-employed, to prove your contractor status it is good to have more than one client. Obviously, in the case of gardeners or handymen, this is much easier than for remote workers providing services to international and French based clients. Especially if the majority of your work, and income originates from one source. It’s also advised to get a distanced contractor agreement with your clients, stipulating your responsibility of paying both your own social contributions and taxes in France.

Register for the right scale of business

Structures of self-employment

Referred to as travailleurs indépendants in France, there are different structures and regimes available for self-employment. Which one is suitable for you is dependent on the both the nature of your proposed business, alongside your projected earnings.

The simplest structure for self-employment in France, is Micro-entrepreneur status (previously referred to as auto-entrepreneur). This regime is ideal for small businesses. It involves easy registration and minimal administrative efforts. However, there are maximum turnover amounts for this regime.

If you’re likely to surpass those maximum earnings, a more suitable option is to register as Entreprise Individuelle. This option means you can also deduct business expenses unlike the ME regime, however, you also become personally liable for debts of the company.

Finally, for those intending to scale businesses significantly, the Sociéte par Actions Simplifiée or Société à Responsabilité Limitée is the option for you. This allows for not only the possibility of bringing investors or partners on board, but also offers more limited liability.

It is important to choose the right regime for the long-term because changing regime is a complicated challenge.

Self-employment registration

Firstly, you must formally register your business. This gives you a SIRET (registration number) formally recognising your activity. Since January 2023, any business formality including registration, modification or cessation, as well as address changes, is processed on “le guichet des formalités des entreprises”. Regardless of the legal form or activity of the business. This is a welcome development, since previously, it depended on your activity as to how and where you needed to register.

Registration is fairly straightforward. Although, it may challenge your language skills. You are asked a series of questions, as well as to provide supporting documentation. In case of problems, help is readily available from the many micro entrepreneurs registered as hand holders in France and via a government run admin service called France Services”.  Bpifrance also offers a detailed breakdown of the forms you’ll need.

Sadly, there is a lot of paperwork

Associated taxes

There are of course, tax obligations to self-employment in France.

All residents in France must complete an annual tax declaration in May and pay it in Sept. There are a number of tax deductions for the self-employed, tied to your trade, 71% for sales activities, 50% for commercial and trading services and 34% for private services.

As well as income tax, you will pay business property tax (CFE) on the amount of space in your home used to conduct your work. After declaring the space used in your first year, you will receive annual CFE bills, payable mid-December. A notoriously tricky business rate to estimate in advance, as the rate is decided at local government level, then apportioned accordingly to your earnings.

Ensure that you are ready for this demand, as this tax can be very unwelcome present in the run up to Christmas. It is worth noting though, that for certain areas and even certain professions there can be exonerations for some years depending on your circumstances. This tax also only applies to net incomes of over €5,000.

Social contributions

As a self-employed person, you will also need to pay social contributions towards healthcare as well as pensions and other charges (most comparable to NI payments in the UK). The amount you pay is dependent on the size of your business and the regime you are on. These payments are made monthly or quarterly to whichever body you are registered with.

Social contributions change, so keep up to date to know exactly what you need to be paying and when.

Challenges of self-employment

As with all administration in France, over time rules change and it your responsibility to keep on top of those rules and regulations. For example, your business income now needs to be paid into a business account, and, as of next year, you will have to use government-certified accounting software to administer your business.

It is up to you to account for maximum earning thresholds and know when to start charging VAT. Administration of your business can be challenging, what with having to remember to declare and pay regularly, complete tax returns and arm yourself with latest rules on your particular regime. But you can find tax advisors who can help.

Use local resources to grow your network

Avenues to find work

The other challenge of self-employment is finding your own work and clients. For trades and services such as gardening, handymen and cleaners the most obvious route to find work is to advertise locally. Word of mouth and recommendations are your best friend here. Facebook groups for your local area and business Facebook groups in France can also provide great leads.

There are also many job boards that are useful resources for finding contract work such as Fiverr, Upwork and Malt. Facebook groups also often have set days for people advertising for help and paid assistance. Both within the local area and nationally.

Professional Advice

In short, ensuring you have the right to self-employment and fulfilling all your obligations of doing so, can seem daunting and a complex issue. But in truth, many of the issues around relocating to France can seem like that on arrival. Yet people have always done it and will always continue to do so. The best advice is, if in any doubt seek the guidance of a professional who is versed on the laws and complexities of relocating to France to ensure you remain compliant at all times.