
Expat-friendly tax system in France

When you set up your business in France, you will probably want to relocate some of your existing staff.
Simplified administrative procedures
Administrative procedures have been considerably simplified to facilitate entry and working conditions for expatriates and their families arriving in France. There is a specific single administrative office for each stage of the company’s existence (creation, recruitment, etc…) to reduce and facilitate administrative procedures. Investing in France is therefore easier and quicker. The simplification of administrative procedures is an ongoing policy which is now further evolving towards greater online administrative services.
At the same time, tax and social measures enable expatriates to offset their relocation costs.
Advantageous tax and social security framework
Over the past several years, the French government has introduced measures to favor mobility among management staff:
- Expatriate staff in France benefit from tax exemptions for their expatriate premiums. This exemption is extended to that part of their income which is earned abroad up to but not exceeding 20% of total taxable income earned in France. At the same time, expatriate staff in France are able to deduct social security payments in their home country from their taxable income in France.
- France has already entered into approximately 40 social security treaties with third party countries as well as with the EU and EEE countries. These social security treaties greatly facilitate the movement of workers and enable them to maintain their initial social security cover and be exempt from social security payments in France.
Privileged entry conditions
Seconded staff (inter-group transfers only) can obtain a residence permit that is valid for several years.
Their family may also be able to obtain a “family” residence permit which entitles them to carry out a professional activity in France. Children may be registered in a French state school at any time during the school year, or parents may choose a private school. Many educational establishments have international sections that run from primary through to sixth form. Part of the curriculum is taught in French, the rest is taught in the language of the international section concerned, and follows the educational program of that country; lessons are taught by qualified teachers from that particular country. This educational system leads to the French Baccalaureate with International Option (OIB) which is accepted as an equivalent entry qualification by universities in the associated countries
Contact
Invest in France Agency Paris
Fatia BOUTEILLER
Legal Expert
Send an e-mail
+33 1 40 74 73 51
Arnaud SOLIGNAC
Tax Expert
Send an e-mail
+ 33 1 40 74 73 56
Publications
- 10 Myths About France
[ppt - 555 Ko] - 10 Reasons to invest in France - Jan. 2008
[ppt - 2 Mo] - Labor Law in France
[pdf - 175 Ko] - Doing Business in France
[pdf - 3 Mo]