Do you love la douce France? Then you want to pay attention to digital nomad France tax.
In this article, we’ll dive into everything you need to know about taxes in France for digital nomads.
Need help with your tax and legal structure as a digital nomad or remote worker? Reach out!
Overview of Taxes in France for Digital Nomads
- You can qualify as a tax resident of France even if you spend less than 183 days in the country.
- French income taxes are high and go up to 45%.
- On top of this you also have to pay social contributions.
- If you do become a French tax resident, you can try to minimize the tax impact by going for the micro-entreprise regime or opening a company.
Tax Rules and Rates in France
Let’s have a closer look at the actual tax rules and rates in France and how they apply to digital nomads.
Tax Residency in France
France will consider you a tax resident if you have your habitual abode in the country or if you have the centre of your economic interests in France.
The assessment of where you have your habitual abode or economic interest isn’t always clear. It is an assessment based upon your personal situation and factual elements.
Therefore, France doesn’t strictly follow the 183 days like some other countries. Yet, if you spend the majority of the year in France this can definitely be a strong element pointing towards tax residency in France.
So, this is another good example why just taking into account the 183 days rule isn’t a safe bet as a digital nomad. Other ties could connect you to the country and make you a tax resident.
French Personal Income Taxes
France is one of those Western countries where living there doesn’t come cheap from a tax perspective.
Income tax rates for professional income in France go up to 45% if your income surpasses €160.000.
You can find an overview of the up-to-date brackets on the website of the French authorities.
If you receive investment income (dividend, interest, etc.) you will pay taxes on this income at a flat rate of 30% (12,8% actual income taxes and 17,2% of social contributions).
France also has an exit tax for people who want to deregister as a tax resident.
This exit tax applies if you were a French tax resident for at least 6 years out of the last 10 years. Basically, they will charge you the capital gains tax rate on unrealized gains. Yet, certain exemptions for smaller fortunes apply.
Social Contributions in France
Social contributions on professional income depend on your personal and professional situation.
For employees, the employer will in general pay between 25% to 30% in social contributions. The employee’s share amounts to 20% to 23% of their gross salary.
For self-employed individuals, the social contributions range between 35% and 45% of their net income. However, different rules can apply to, for example, micro entrepreneurs.
French Corporate Income Tax
The standard French corporate income tax rate is 25%.
In addition, certain surcharges and social contributions can apply to very large companies and multinationals. However, these should not apply to the average nomad.
If your company meets the following conditions it can benefit from a reduced rate:
- Annual turnover (excluding VAT) is lower than €10 million;
- The capital is fully paid up;
- Individuals hold at least 75% of the shares of the company.
In case you meet these criteria you will pay 15% in corporate tax on the first €42.500 in profit.
Options to Reduce Taxes in France as a Digital Nomad
By now, you understand that France is far from a fiscal paradise.
Yet, you might still want to live there for a various range of reasons. In that case, you want to have a look at some options which can help you to reduce your taxes in France as a digital nomad.
French Tax Regime for Micro-Entrepreneurs
One way to minimize your tax burden is to apply for the tax regime for micro-entrepreneurs.
Under this regime, you can simplify the calculation of your taxes as a freelancer and most of the time it will also lower your tax burden.
The main condition to apply the regime is that your annual turnover doesn’t exceed €77.000 if you run a service business.
Income taxes are due based on your turnover and not based on your actual profit.
Yet, a fixed cost allowance is applied to your turnover in order to establish your (fictional) profit or net income.
For service based businesses, the cost allowance is 34%. This basically means you only calculate your tax on 66% of your turnover.
So, if you have a turnover of €70.000, you will only pay taxes on €46.200.
The applicable tax rates are the normal tax brackets that apply to professional income.
A quick calculation learns that this would give you an actual income tax rate of around 13%.
You also have to calculate your social contributions based on your turnover.
The exact rate of your contributions depends on the industry you work in.
If your run a service or consulting business, you will need to pay social contributions at a rate of 21,20%.
You can also check out my dedicated article on the micro-entreprise regime if you want to learn more about it.
Setting Up a Company
Another option you can use to limit your tax liability if you have a high income is to set up a company instead of working in your personal name.
By setting up a company, you will be liable to corporate tax on the profit that the company generates.
As mentioned before, the standard corporate tax rate is 25%. Yet, if you meet certain conditions you will only pay 15% on the first €42.500 in profit.
Once you paid the corporate taxes, the net profit is still in the accounts of the company. In order to get the money to your private account you will need to pay out a dividend.
You will have to pay taxes on this dividend. As mentioned before, these amount to another 30% for French tax residents.
Nevertheless, in this way you will pay corporate tax and withholding tax which will still be lower than person income tax and social contributions thereon for high incomes.
My Honest Tax Perspective on Being a Digital Nomad with Tax Residency in France
If you are looking to optimize your taxes as a digital nomad I would strongly advise you to stay away from France.
France has high income tax rates both for professional and passive income.
Moreover, the social contributions are also very high.
Therefore, it’s not uncommon that your total tax burden will amount to more than 50%.
However, if you really want to settle down in France, you might not be able to escape these high taxes. In that case, you could try to limit the tax burden by registering as a micro-entrepreneur or by opening a company.
How is France for Digital Nomads
France is a huge attraction for tourists as well as digital nomads. Here are some of the reasons why you want to visit France as a digital nomad:
- Culture: France has a rich history and is the place to be if you like arts.
- Food: the French cuisine is another attraction, not to mention their wines.
- Internet: France offers good internet speed and coverage so you don’t have to worry about getting your work done.
- Quality of life: the country overall offers a good quality of life.
Let Me Help You With Your Tax Setup
Whether you’re exploring France as a base for your international lifestyle or comparing its tax regime with other jurisdictions, I can help you navigate the complexities.
My expertise goes beyond France — I provide tailored advice for digital nomads, expats, and globally mobile professionals across multiple countries.
If you’re ready to structure your international life with clarity and compliance, let’s work together.