Freelancing in France as an expat: micro-entrepreneur vs company, taxes and social charges
Your three main options
Most expat freelancers in France choose between three set-ups: the micro-entrepreneur scheme (also called auto-entrepreneur), a single-shareholder company called a SASU, or its alternative, the EURL. The right choice depends on your expected turnover, your expenses and how you want to pay yourself.
Option 1: micro-entrepreneur, the simplest way to start
You register online in a few days and pay social charges as a flat percentage of the turnover you actually receive. If you earn nothing, you pay nothing.
Activity | Social charges 2026 | Turnover cap 2026-2028 |
Consulting, IT, design and other liberal services | 26.1% | €83,600 |
Commercial or craft services | 21.2% | €83,600 |
Sale of goods | 12.3% | €203,100 |
Income tax: your profit is taxed at your personal rate after a flat allowance for expenses. Under certain income conditions, you can opt to pay income tax at source as a small extra percentage of turnover (2.2% for liberal services, 1.7% for commercial services, 1% for sales).
VAT: you don't charge VAT until your turnover exceeds €37,500 for services or €85,000 for sales.
The catch: your real expenses (equipment, travel, subcontractors) are not deductible, and the turnover caps limit growth.
For a step-by-step walkthrough of registration, URSSAF declarations and obligations, read our Auto-Entrepreneur in France: The 2026 Guide for English Speakers.
Option 2: SASU or EURL, built to grow
SASU | EURL | |
Your social status | Treated like an employee | Self-employed (TNS) |
Social charges on your pay | Higher, better social cover | Lower, less social cover |
If you pay yourself nothing | No minimum charges | Minimum charges still due |
Dividends | Flat tax of 31.4% | Social charges on part of them |
Corporate tax | 15% up to €42,500 of profit, then 25% | Same if the company opts for corporate tax |
A company makes sense once your turnover approaches the micro caps, when your expenses are significant, or when you want to keep profits in the business to invest. We handle the whole process with our company registration in France service.
Expat-specific points to check
Your right to work: if you are not an EU/EEA or Swiss citizen, check that your residence permit allows self-employment.
Tax residence: if you live in France more than six months a year or your main activity is here, you are generally a French tax resident.
Tax treaties: France has treaties with most countries to avoid double taxation. Check how yours treats your income.
CFE: a local business tax is due from your second year of activity, even as a micro-entrepreneur.
E-invoicing: from September 2027, invoices to French business clients must go through a certified platform. See France's e-invoicing reform explained.
Worked example: a consultant earning €80,000
Take a freelance consultant under the micro-entrepreneur scheme (liberal services) who earns €80,000 a year and has €15,000 of real business expenses.
Social charges: €80,000 × 26.1% = €20,880, calculated on turnover whatever the expenses.
Taxable income: €80,000 minus the 34% flat allowance = €52,800, while the real profit after expenses and social charges is only €44,120.
Room to grow: turnover is close to the €83,600 cap, and none of the expenses can be deducted.
In a company, the €15,000 of expenses would be deductible and the consultant could choose between salary and dividends. Whether it pays off depends on the personal situation, which is what a simulation measures.
Frequently asked questions
What happens if I go over the micro-entrepreneur cap?
You do not leave the scheme straight away. You leave it if you exceed the cap two calendar years in a row. The turnover that counts is the amount actually received, excluding VAT.
Do I need a separate bank account?
As a micro-entrepreneur, a dedicated account becomes mandatory once your turnover exceeds €10,000 for two consecutive calendar years. A company always needs a business bank account, starting with the deposit of its share capital.
What is the minimum share capital for a SASU or EURL?
The legal minimum is €1. In practice, a few thousand euros gives banks and partners more confidence.
Can I switch from micro-entrepreneur to a company later?
Yes. Many freelancers start as micro-entrepreneurs and set up a company once their business grows. You then close the micro-entreprise and invoice your clients through the new company.
Not sure which option fits you?
At GME Audit, an English-speaking accounting firm in Paris, we help freelancers compare the options with a simulation of their net income, then set up their business and keep their books online. Micro-entrepreneur bookkeeping starts at €150 excl. VAT per month, and company set-up from €400 (excluding registry and publication fees).
Book a free 15-minute call with an English-speaking accountant: schedule a call
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