Self-Employed Taxes in France: A Simple Guide for Expats (2026)

One of the biggest concerns for expats starting a business in France is taxes. The good news: under the micro-entrepreneur status, the tax system is remarkably simple compared to other business structures.

Here's what you need to know about self-employed taxes in France in 2026.

The basics: how micro-entrepreneur tax works

Unlike a traditional business where you're taxed on profit, micro-entrepreneurs pay charges based on turnover (total revenue, not profit). This means:

No turnover = no tax
No complex accounting required
No need to track business expenses for tax purposes

Social charges (cotisations sociales)

This is your main ongoing cost. You declare your turnover to URSSAF (monthly or quarterly, your choice) and pay:

Services (BNC): 21.1% of turnover
Commercial activities (BIC): 12.3% of turnover
Regulated professionals (CIPAV): 23.2% of turnover

These charges cover your healthcare, retirement, and social protection in France.

ACRE discount for new businesses

If you qualify for ACRE (Aide aux Créateurs et Repreneurs d'Entreprise), you get 50% off social charges for your first year. This applies to most new registrations — you'll pay roughly 11% instead of 22% on services income.

Income tax

You have two options:

Option 1: Versement libératoire (flat rate)

If your household income is below certain thresholds, you can opt to pay income tax as a flat percentage of turnover:

Services: 2.2%
Commercial sales: 1%
Regulated professions: 2.2%

This is paid alongside your social charges — simple and predictable.

Option 2: Standard income tax

Your micro-entrepreneur income is added to your household income and taxed at progressive rates. France applies an automatic abattement (deduction) to account for expenses:

34% abattement for services (BNC)
50% for commercial activities (BIC)
71% for buying/selling goods

So if you earn €10,000 from services, only €6,600 is added to your taxable income.

VAT (TVA)

Under the franchise en base de TVA, you're exempt from charging VAT if your turnover stays below:

€36,800/year for services
€91,900/year for goods

This means you don't charge VAT to clients and don't file VAT returns. If you exceed these thresholds, you must start charging and declaring VAT.

Your invoices must include: "TVA non applicable, article 293 B du CGI"

CFE (Cotisation Foncière des Entreprises)

This is a local business tax based on the rental value of your business premises. Key facts:

Exempt for your first calendar year of activity
Typically €100–500/year for home-based businesses
Varies significantly by commune
Must be paid in December each year

Declaring your turnover

After receiving your SIRET number, you'll register with URSSAF (autoentrepreneur.urssaf.fr). You must declare your turnover either:

Monthly — by the last day of the following month
Quarterly — by the end of the month following the quarter

Important: You must declare even if your turnover is €0. Failure to declare results in penalties.

Tax calendar summary

Monthly/Quarterly: Declare turnover and pay social charges to URSSAF
April–June: Annual income tax declaration (déclaration de revenus)
December: Pay CFE
Ongoing: Keep records of all invoices and income

Common mistakes

Not declaring €0 months — this triggers penalties and estimated assessments
Missing the income tax declaration deadline — even micro-entrepreneurs must file annually
Not opting for versement libératoire early enough — you must choose this when registering or within 3 months
Exceeding VAT thresholds without realising — track your cumulative turnover carefully

Bottom line

The micro-entrepreneur tax system in France is designed to be simple. Pay a percentage of what you earn, declare regularly, and keep basic records. It's one of the most straightforward self-employment tax systems in Europe.

Need help getting started? Register with Simpleo — we'll set you up with the right options for your situation.