Taxation in France: What Digital Nomads Need to Know

Taxation in France: What digital nomads need to know to avoid surprises

France is one of the most sought-after destinations for those looking for quality of life, culture, and professional opportunities. However, when it comes to taxation, the country has one of the most rigorous tax systems in Europe. For digital nomads, understanding French tax rules is essential to avoid issues with the country’s tax authorities and to strategically plan tax residency.

1. Tax Residency in France

In France, an individual is considered a tax resident if they meet at least one of the following criteria:

• Spending more than 183 days per year in French territory;

• Having their main residence or economic center of interest in France;

• Carrying out professional activities in France, even if not full-time.

Tax residents are taxed on their worldwide income, while non-residents are taxed only on income sourced in France.

2. Personal Income Tax (IRPF)

Income tax in France is progressive, with rates that vary according to annual income (updated until 2025):

• Up to €11,497: 0%

• From €11,498 to €29,315: 11%

• From €29,316 to €83,823: 30%

• From €83,824 to €180,294: 41%

• Above €180,294: 45%

In addition to income tax, there are social contributions on income, which can add around 9.7% more to earnings.

3. Taxation for Freelancers and Companies

Digital nomads working as freelancers or providing services through companies need to evaluate the available options:

• Micro-entrepreneur (ME): A simplified regime for small businesses with a limited annual turnover. The tax is paid at a fixed rate, along with social contributions.

• Société par Actions Simplifiée (SAS): A model for larger companies, subject to a Corporate Tax (IS) of 25% on profits.

• Value Added Tax (VAT - TVA): Companies with a turnover exceeding €36,800 (services) or €91,900 (commerce) must collect VAT, usually at a rate of 20%.

4. Double Taxation Agreements

France has double taxation treaties with various countries, including Brazil. These agreements are essential for digital nomads who earn income in multiple countries, allowing for tax credits or exemptions on certain types of income.

5. Tax Impact and Adaptation of Digital Nomads

The complexity of the French tax system can be an additional challenge for digital nomads seeking to establish an efficient financial structure. The need to adapt to tax rules and the tax burden may influence the choice of tax residency and lead to the search for strategies more suited to each professional profile.

Thus, proper tax planning can be a key factor in ensuring tax compliance and optimizing taxes, allowing digital nomads to focus on their professional activities with more security and peace of mind.

Conclusion

Taxation in France can be challenging for digital nomads, but with proper knowledge and support from international tax law experts, it is possible to minimize tax impacts and ensure compliance with the law. Before making any decision, consulting with a tax lawyer is recommended to analyze each case individually and define the best approach for tax residency and business structuring.

If you are interested in hiring professional legal services related to tax planning, we are a specialized law firm in the field. Feel free to contact us via email: contato@trpuppioadvocacia.com.br.