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France 2025 Tax: Brackets, Rates, and Dividend Tax Rules Explained

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Published: 18 February 2025 – Verified: 10 April 2025
Source: Directorate for Legal and Administrative Information (Prime Minister’s Office)

Understanding how France 2025 tax rules apply to your income, savings, and investments is essential—whether you’re a resident, non-resident with French income, or receiving dividends from shares or business investments. This guide explains the progressive income tax brackets, applicable rates, and how dividends are taxed in France.

How Income Tax Is Calculated in France in 2025

Income tax in France is calculated using a progressive scale. The more you earn, the higher the rate applied to each segment of your taxable income. For the 2025 tax season (applying to income earned in 2024), the system remains structured around multiple brackets ranging from 0% to 45%.

The tax scale is determined annually by the French government. For 2025, income thresholds have been increased by 1.8% under the 2025 Finance Law.

France applies the quotient familial system, which adjusts the taxable income based on the number of people in the household and their relationship (e.g., single, married, children). This significantly affects your total tax due.

To calculate your taxable income, you must also take into account your family quotient, which defines the number of tax parts allocated to your household.

France 2025 Tax Brackets and Rates

Here’s the progressive 2025 tax scale applicable to 2024 income:

Taxable Income (per part) Applicable Rate
Up to €11,294 0%
€11,295 to €28,797 11%
€28,798 to €82,341 30%
€82,342 to €177,106 41%
Over €177,106 45%

📌 Note: These rates apply per share (part fiscale). The more dependents or tax shares you have, the lower your effective taxable income.

Explore the official tax simulator and more on the Service-Public.fr income tax portal.

When and Where to Declare 2025 Income

Income earned in 2024 will be declared via the 2025 tax return, which opens on April 10, 2025.

However, income earned in 2025—including financial income like dividends and investment earnings—will not be declared until 2026.

You can learn how to file your income tax step-by-step in our detailed guide here:
👉 How to File Taxes in France – Complete Guide for 2025

What Types of Income Must Be Declared?

Income from Shares or Business Interests

If you received dividends or distributed income from shares or business equity, it is taxable and must be declared. These incomes are commonly categorized as:

  • Dividends

  • Distributed profits from business shares

These are subject to taxation, regardless of your residency, as long as the income is sourced from France.

France 2025 Taxation of Dividends and Investment Income

There are two available tax regimes for income from investments like dividends:

Option 1: Flat Tax (PFU – Prélèvement Forfaitaire Unique)

The flat tax—also called the PFU—is applied at a fixed 30% rate, which includes:

  • 12.8% income tax

  • 17.2% in social security contributions

If you opt for the PFU, you cannot benefit from:

  • The 40% tax deduction on gross dividends

  • Deduction of certain social charges (e.g., CSG)

  • Deduction of actual fees or charges related to investment

This method is simple and automatic unless you opt out.

Option 2: Progressive Income Tax Scale

You may choose to have your dividend and investment income taxed under the standard income tax scale instead of the flat rate. This can be advantageous depending on your tax bracket.

If you choose the progressive scale, you can benefit from:

  • A 40% allowance on dividends

  • Deductibility of part of the CSG

  • Deduction of actual investment-related expenses

⚠️ Note: This choice applies to all your investment income and capital gains for the tax year. You cannot apply it selectively.

Which Tax Regime Should You Choose?

Choosing the most favorable option depends on your marginal tax rate:

  • If you’re non-taxable or taxed at 11%, the progressive scale is typically better than the flat tax at 12.8%.

  • If your marginal rate is 30% or more, the flat tax is usually the better option.

If you do not make a choice, your investment income will be automatically taxed at the flat 30% PFU rate.

Can You Be Exempt from the Flat Tax?

In some cases, you can request exemption from the flat tax. This applies if your reference taxable income two years prior (i.e. 2023 for 2025 income) is below:

  • €50,000 for single individuals

  • €75,000 for couples subject to joint taxation

To obtain this exemption:

  • Submit a request to the financial institution paying the income

  • Deadline: No later than November 30, 2025, for income received in 2026

  • Most institutions will provide an honor-based declaration form for you to sign

Learn More About France 2025 Tax Rules

For a full breakdown of how to file, what forms to use, and how expats or business owners should approach their 2025 French tax return, visit:
👉 How to File Taxes in France – Your Complete Guide for 2025

You can also find detailed guidance on investment and capital income taxation directly from the French government’s official source.

How to File Taxes in France: Your Complete Guide for 2025

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Want to know how to File Taxes in France ?

Who Has to Declare Income in France?

You have to report your income to the tax department if you are resident in France or if your tax domicile is in France.

⚠️ Warning
If you reside abroad but receive income from France, you must also declare your income in France.

You must file a tax return even if you received little or no income. Doing so can allow you to:

  • Obtain a notice of non-taxation, which may be required for certain aids (e.g., housing aid)

  • Request a refund of tax credits you’re entitled to

Example:
You can get a refund for childcare expenses, whether the care is provided at your home or elsewhere.

You must file a single declaration for the entire tax household. This means the income and expenses of all members in the household are taken into account to calculate a single tax obligation.

How to File Taxes in France Online: 

Internet filing is mandatory if your primary residence has internet access and you are capable of filing online.

💸 In case of non-compliance with the online filing obligation, a 0.2% increase on the amount of tax payable is applied, with a minimum of €60.

Your tax return must be filed from your secure online personal account:

👉 Access the 2025 Online Income Tax Return Portal (for 2024 income) – French Government

Before validating your pre-filled return, make sure to:

  • Verify the information provided

  • Correct or complete it if necessary

🗃️ Keep your login credentials and tax documents for at least 3 years in case the tax administration requests them.

📌 Please note
If you live in an area where no mobile service is available, you are exempt from online filing and may submit a paper return.

What Is the Deadline for Filing Your Tax Return?

The 2024 income tax return can be filed online starting April 10, 2025.

Deadlines vary depending on your mode of filing (paper or online) and your place of residence.

You can use the simulator on the government website to find your specific deadline:
👉 Check your filing deadline here

📅 Table – Deadline for Filing Your Tax Return Online

Department Deadline
Departments 01 to 19 Thursday, May 22, 2025 at 11:59 PM
Departments 20 to 54* Wednesday, May 28, 2025 at 11:59 PM
Departments 55 to 974/976 Thursday, June 5, 2025 at 11:59 PM
Non-residents Thursday, May 22, 2025 at 11:59 PM

*Includes Corsican departments 2A and 2B.

👉 2025 Online Income Tax Return for 2024 (Special Space)

Can You Make Changes After Submission?

🧾 FYI
You can still correct certain elements of your tax return even after it has been submitted to the tax authorities.

Learn More About Taxation in France for Expats and Professionals: How to File Taxes in France

If you’re an international professional or relocating through an intra-company transfer, we invite you to read our in-depth article on French tax rules, work permits, and legal requirements:

👉 Intra-Company Transfer to France – Work Permits, Tax Rules, and Legal Requirements for 2025 (ESCEC International)

This resource will help you manage your relocation and tax obligations with confidence.

Intra Company Transfer to France: Work Permits, Tax Rules, and Legal Requirements for 2025

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The intra company transfer is one of the most common mobility routes for international professionals relocating to France. Whether you’re a multinational company posting talent to your French subsidiary or a foreign employee assigned to work in France temporarily, understanding the visa process, work authorization, and tax implications is essential for a compliant and successful transfer in 2025.

What Is an Intra Company Transfer?

An intra company transfer (ICT) refers to the temporary relocation of an employee from a foreign branch of a company to its office or subsidiary in France. It enables skilled professionals—often executives or specialists—to contribute to projects or operations while remaining under contract with their original employer abroad.

In France, this process is governed by specific residence permits designed for seconded employees. There are two main pathways:

  • The “ICT seconded employee” residence permit

  • The “Talent Passport – Employee on Assignment” for those on a French employment contract

For a full overview of intra-corporate transfer regulations, you can refer to the official resource:
🔗 Welcome to France – Intra-Corporate Transferees (ICT)

Who Needs an ICT Residence Permit in France?

Non-EU/EEA/Swiss nationals planning to stay in France for more than 90 days as part of an intra company transfermust apply for:

  • A long-stay visa, and

  • Either a multi-year ICT residence permit or a VLS-TS (long-stay visa equivalent to a residence permit), depending on the mission’s duration.

This applies only when the employee remains under contract with the foreign parent company. If a French contract is signed, a different residence status applies.

Eligibility Criteria for ICT Seconded Employees

To qualify for the “ICT seconded employee” residence permit (Salarié détaché ICT), an applicant must:

  • Have at least six months of seniority in the group

  • Hold a contract with the foreign company, not the French host

  • Be transferred as a senior manager or high-level expert

  • Ensure that the home and host entities are part of the same corporate group

  • Receive compensation aligned with French legal and industry minimums

The ICT permit is issued for a maximum of three years and is non-renewable. After this period, the employee must return to their home country or apply for a change of status.

Mobile ICT Transfers Within the EU

Employees already holding an ICT residence permit from another EU Member State can be transferred to France under a mobile ICT permit for up to three years.

Requirements include:

  • A valid ICT permit from the first EU country

  • An amendment to the employment contract specifying the French assignment

  • Proof that both companies belong to the same group

  • Notification to French authorities if the mission is under 90 days

The mobile ICT permit acts as both a residence and work permit, authorizing the individual to work only in the role described in the application.

Mandatory Posting Declaration for Foreign Employers

Before beginning any intra company transfer in France, employers based outside France must submit a posting declaration via the SIPSI online platform.

This legal requirement ensures French authorities are informed of:

  • The nature of the assignment

  • The host entity in France

  • The duration and conditions of the transfer

📌 Declaration must be submitted before the employee starts work in France.

Tax Implications for Intra Company Transfers in France (2025)

While seconded employees stay under contract with a foreign company, they may still face tax obligations in Francedepending on the assignment length and activities.

French Income Tax Considerations

If the employee works physically in France and remains in the country for more than 183 days in any 12-month period, they may become tax resident in France. This would trigger French income tax obligations unless tax treaty relief applies.

France has signed numerous double taxation treaties, including one with the UK. These treaties are designed to prevent the same income from being taxed twice.

👉 For full details, read our article on the Double Taxation Treaty France–UK and How It Affects Non-Residents in 2025.

Withholding Tax for Non-Residents

Employees temporarily assigned to France but who retain tax residency abroad are often subject to withholding tax at source. As of 2025, the standard non-resident withholding rates in mainland France are:

  • 0% on income up to €15,228

  • 12% on income between €15,228 and €44,172

  • 20% on income above €44,172

Tax credits may be available in the home country, depending on applicable treaties.

Social Security and Payroll Issues

Intra company transferees may remain under their home country’s social security system if supported by an A1 certificate or equivalent. Otherwise, French contributions may apply.

Final Thoughts: Planning a Successful Intra Company Transfer

The intra company transfer process to France provides streamlined mobility for qualified professionals—but it requires careful planning. Between visa applications, tax rules, social security compliance, and posting obligations, it’s essential for both employers and employees to understand their responsibilities.

Navigating this process effectively helps prevent legal issues, ensures tax efficiency, and supports successful international assignments in 2025 and beyond.

Double Taxation Treaty France–UK: What Non-Residents Need to Know in 2025

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If you’re a UK resident earning income in France, understanding the double taxation treaty between France and the UK is crucial. This treaty protects you from being taxed twice on the same income and clarifies which country has taxing rights. Whether you’re working temporarily in France, receiving French investment income, or exploring French property ownership, this guide explains how the treaty applies to you in 2025.

What Is the Double Taxation Treaty Between France and the UK?

The France–UK double taxation treaty is a bilateral agreement designed to avoid dual taxation for individuals and businesses operating between the two countries. It outlines which types of income are taxable in which country and provides mechanisms for tax relief.

This means that if you’re taxed in France as a UK resident, you can claim a foreign tax credit on your UK tax return—ensuring you’re not taxed twice on the same income.

When Does the France–UK Treaty Apply?

The treaty applies when:

  • You are resident in the UK but earn income from French sources (such as work, rent, dividends, or pensions).

  • You are temporarily working in France for a UK-based employer.

  • You own property or investments in France generating taxable income.

  • You are non-resident in France and receive remuneration for services performed on French soil.

Taxation Rules for UK Residents Working in France

Under the France–UK tax treaty, the following applies:

  • If you’re in France for fewer than 183 days in a 12-month period, and your salary is paid by a UK employer, your income is generally taxable only in the UK.

  • If you exceed the 183-day threshold or your employer has a permanent establishment in France, then French income tax applies.

Even when French tax is due, the UK will typically grant a credit for the French tax paid—eliminating double taxation.

For a more in-depth look at how the French expatriate regime applies, see our article:
👉 Expat Taxes in France – Everything You Need to Know About the Expatriate Tax Regime (2024–2025)

What Income Is Covered by the Treaty?

The France–UK double taxation agreement applies to a wide range of income types, including:

  • Employment income

  • Self-employment income

  • Dividends and interest

  • Rental income

  • Capital gains

  • Pensions and annuities

Each income type is addressed in detail within the treaty, assigning taxing rights either to France, the UK, or both—often with credit mechanisms or exemptions to avoid double taxation.

Withholding Tax and Tax Rates for Non-Residents in France

If you’re a UK resident receiving income from France, you may be subject to withholding tax at source. This applies to salaries, dividends, and some service-based income.

As of 2023, non-residents are taxed in France at the following progressive withholding rates (based on 2022 income):

Mainland France:

  • 0% on income up to €15,228 per year

  • 12% on income between €15,228 and €44,172

  • 20% on income above €44,172

Overseas Departments:

  • 0%, 8%, and 12% brackets apply (lower intermediate rate)

More details available here:
🔗 Fact Sheet – Non-Residents for Tax Purposes

How to Avoid Double Taxation in Practice

To make use of the treaty and avoid double taxation:

  1. Report your French income on your UK tax return.

  2. Claim foreign tax credit relief for any tax already paid in France.

  3. If your income is exempt in the UK under the treaty, indicate that clearly in your self-assessment.

  4. Retain all French tax documentation (payslips, tax certificates, etc.) in case of audits or cross-border verification.

It’s also wise to consult with a bilingual tax advisor familiar with both UK and French tax systems to ensure correct application of the treaty and to optimize your tax situation.

Final Thoughts: Double Taxation Doesn’t Mean Double Trouble

The double taxation treaty France–UK offers valuable protection for British residents with income in France. It ensures fairness and prevents financial penalties from being taxed twice across jurisdictions. Understanding your status as a non-resident taxpayer and knowing how to apply treaty provisions can save you money—and stress.

If you’re earning French income as a UK resident in 2025, the treaty could be your best financial ally.

Expat Taxes in France: Everything You Need to Know About the Expatriate Tax Regime (2024–2025)

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France offers a special tax incentive designed to attract international professionals: the expatriate tax regime. If you’re considering relocating to France for work, understanding expat taxes is crucial to planning your financial future. This comprehensive guide outlines who qualifies, the tax advantages, reporting obligations, and how long you can benefit from the regime.

Who Is Eligible for the French Expat Taxes Regime?

To qualify for the expatriate tax benefits, individuals must meet the following criteria:

  • Non-residency in France for tax purposes during the five full calendar years preceding the move.

  • Employment by a company in France, either via:

    • Internal transfer within an international group, or

    • Direct recruitment from abroad.

Executives who are taxed as employees may also qualify—even if they hold shares in the company—provided they are compensated as salaried employees and meet the eligibility conditions.

✅ Returning expats can also benefit, provided they’ve spent at least five years abroad before rejoining a French company within the same group.

🚫 Individuals who were already tax residents in France at the time of hiring are not eligible.

What Are the Tax Benefits for Expats in France?

The French expat tax regime provides a range of benefits, making relocation financially attractive.

Income Tax Exemptions

The following income may be partially or fully exempt from French income tax:

  • Expatriation bonuses

  • Compensation linked to international assignments

  • 50% of foreign-sourced investment income, capital gains, or royalties, provided they originate from a country with a tax treaty that includes administrative assistance

  • Contributions to foreign retirement or life insurance schemes (if subscribed before arriving in France)

➡️ For an overview of how this tax scheme fits into broader financial planning, read our related article: How to Open an Online Bank Account in France and Understand Taxation in 2025.

Property Wealth Tax Relief (IFI)

During the first five years after establishing French tax residence, expatriates are taxed only on real estate located in France. Assets held abroad are excluded from the IFI base.

This benefit is automatic and separate from the employment-specific income tax relief.

Payroll Tax Savings for Employers

If the employer is liable for the payroll tax (taxe sur les salaires), the portion of the compensation exempt from income tax—particularly the expatriation bonus—is also exempt from payroll tax, up to 30% of total salary when using the flat-rate method.

Social Security Opt-Out Option

Eligible employees who arrived after 10 July 2018 can request exemption from French old-age social security schemes, meaning they can continue contributing to retirement systems abroad under specific legal conditions. For more details, refer to the official guidance from the French tax authorities.

How to Claim Expat Tax Benefits in France

No Formal Application—Just Proper Reporting

There’s no separate application to submit. Instead, both employer and employee must ensure the following:

Employer Obligations

  • Declare salaries and bonuses on the DSN or DADS-U, separating taxable and exempt portions.

  • Calculate and document the reference salary—the minimum taxable income comparable to similar roles in France.

Employee Obligations

  • Declare choice of flat-rate exemption (30% of salary) in the income tax return (form 2042/2042C).

  • Adjust any incorrect pre-filled figures, ensuring the exempt and taxable income are correctly allocated in the proper form fields.

Expatriation Bonus: Conditions and Options

The expatriation bonus must be declared and calculated transparently. It can either be:

  • Fixed in the employment contract (or an amendment); or

  • Defined as a percentage of base or variable salary, allowing flexibility for performance-based roles.

Flat-Rate Option

When opting for the flat-rate method, expatriates can exempt up to 30% of total gross income. This is especially useful when the actual bonus isn’t specified in the contract.

You can also combine the expatriation bonus exemption with the exemption on income earned abroad, subject to one of two caps:

  • A 50% overall exemption cap, or

  • A 20% cap on the international portion of income (excluding the bonus).

How to Determine the Reference Compensation

The reference salary is the benchmark amount the expatriate must be taxed on after exemptions. It ensures the employee isn’t taxed below what a similar non-expat role would earn.

Companies can determine this figure using:

  • Comparable salaries in the same company or similar businesses

  • Lowest salary for similar roles over the last three years

  • Adjusted assessments in cases of highly individualized or executive compensation

This ensures the application of expat tax relief is fair and grounded in real-world comparisons.

How Long Can You Benefit from the Expat Tax Scheme?

The maximum benefit period is up to 8 calendar years, starting from the date of the expatriate’s first day of work in France.

To be eligible each year, the expatriate must:

  • Reside in France for tax purposes

  • Carry out their main job in France

💡 Even if the household sets up in France the following year, the scheme can be back-applied from the start year, as long as the move is completed by December 31 of the following year.

Changing jobs within the same corporate group or shifting roles inside the company does not reset the benefit period.

Legal Protection: Tax Rulings and Audit Guarantees

To reduce risk and ensure clarity, expats and their employers can:

  • Request an advance tax ruling to confirm how the regime applies

  • Rely on these rulings during a tax audit, provided the request was complete and submitted in good faith

These legal tools provide assurance, especially for high-income earners or complex compensation packages.

Need Help Navigating Expat Taxes in France?

Whether you’re planning your move or already living in France, understanding expat taxes is essential to optimize your income and avoid surprises.

To explore more about the expatriate regime, visit the official tax site:
🔗 impots.gouv.fr – Expatriate Tax Regime

For expert guidance tailored to your situation, feel free to contact us.

How to Open an Online Bank Account in France and Understand Taxation in 2025

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France has become one of the most attractive countries in Europe for remote workers, expatriates, and entrepreneurs. A key step to settling in the country or doing business is to open an online bank account in France. In this article, we’ll guide you through the essential steps for opening a French online bank account and cover the major tax updates for 2025 that could impact your financial decisions.

Why Open an Online Bank Account in France?

Whether you are a resident, a newcomer, or a non-resident doing business or working remotely from France, an online bank account provides you with essential tools to manage your finances. Compared to traditional banks, online banks offer faster setup, reduced fees, and a more flexible user experience via mobile apps and web platforms.

Online banking in France is especially beneficial for:

  • Expats and international workers

  • Students

  • Digital nomads

  • Entrepreneurs launching a business

Most online banks in France allow you to open an account remotely, in English, and with fewer administrative burdens. This is particularly helpful for foreign nationals who are in the process of applying for a work authorization in France. If that’s your case, we recommend reading our dedicated guide: Work Authorization in France – What Foreign Employees and Employers Must Know.

Requirements to Open an Online Bank Account in France

The documents needed vary slightly depending on the bank and your residency status, but in general, you’ll be asked to provide:

  • A valid passport or national identity card

  • Proof of address (French or foreign)

  • Proof of income or employment (contract, payslips, or tax return)

  • A recent utility bill or bank statement

Some banks may also request a French mobile phone number or an EU address, especially fintech platforms like N26, Revolut, or Wise.

Top Online Banks Available in France

Here are some of the most trusted online banks you can consider when opening your online bank account in France:

  • N26 – A German-origin online bank offering free accounts and multilingual support.

  • Revolut – Popular for travelers and multi-currency use.

  • Hello Bank! – Backed by BNP Paribas, ideal for those who want a mix of online and in-person banking.

  • Boursorama Banque – Known for being one of the most cost-effective banks in France.

For a deeper understanding of how the French banking system works and your rights as a newcomer, consult this official guide: Welcome to France – Bank.

Tax Considerations in France for 2025

Once you have an online bank account in France, understanding the 2025 tax landscape becomes essential. France introduced significant fiscal measures this year aimed at equity and transparency:

Differential Contribution on High Incomes (DCHI)

High-income earners in France are now subject to a minimum effective taxation rate of 20%, even after all exemptions or deductions. If the actual tax burden is lower, this differential contribution ensures the gap is closed.

Exceptional Corporate Surtax

Large companies in France are now facing an exceptional surtax:

  • 30.975% effective rate for businesses with revenue between €1B–€3B

  • 36.125% effective rate for those with revenue exceeding €3B

This has consequences for foreign investors and entrepreneurs using France as a business base.

Financial Transaction Tax Increase

In 2025, the financial transaction tax has increased from 0.3% to 0.4%, impacting stock market investors and large shareholders operating from France.

Final Thoughts: Key Takeaways for Managing Money in France

Opening an online bank account in France is a vital first step to managing your life or business effectively in the country. With user-friendly fintech options, international newcomers can avoid traditional red tape. However, staying compliant with French tax laws—especially in 2025—is equally important.

If you’re a foreign entrepreneur or employee considering France as your next base, don’t forget to review the latest requirements on employment, banking, and tax. It’s also worth seeking expert advice to structure your finances correctly from the start.

Autorisation de Travail in France: What Foreign Employees and Employers Must Know

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Understanding the autorisation de travail process is crucial for any foreign national who wishes to work in France, and equally important for employers planning to hire international talent. This article provides a complete overview of how work authorizations function, who needs them, and how they connect to tax obligations in France.

For more on taxes and salary implications, check out our guide:
👉 Salary After Tax in France: What Employees and Employers Need to Know in 2025

Who Needs an Autorisation de Travail in France?

Foreign nationals, including non-EU citizens, must secure a work authorization before engaging in paid employment in France. The rules differ depending on your nationality and the nature of your job contract.

Exemptions

You do not need an autorisation de travail if you are:

  • A citizen of an EU or EEA country or Switzerland.
  • A third-country national already legally working in another EU country, under a service provision agreement.
  • A foreign worker coming to France for less than 90 days in sectors such as sports, arts, cultural or scientific events, teaching, consulting, and fashion.

For the full official guide, visit the French government’s page:
👉 Welcome to France – Work Authorization Summary

Types of Documents That Serve as Work Authorization

Certain residence permits or long-stay visas automatically include a work permit if the holder meets eligibility requirements.

These include:

  • The Talent Passport
  • Intra-corporate transferee (ICT) permits
  • Long-stay visas with work rights

In such cases, no separate application is required.

When a Specific Autorisation de Travail Is Required

A standalone work permit must be obtained in addition to a residence visa in several situations:

  • Permanent contract hires (CDI), except under the “Talent” status
  • Temporary contracts (CDD)
  • Employees changing employers
  • Seconded workers outside of intra-group mobility agreements

This application must be submitted by the employer, either based in France or abroad, before the employee arrives.

Application Process: How to Request a Work Authorization in France

Step 1: Job Posting (If Applicable)

If the labour market test applies, the employer must publish the job offer on France Travail or APEC for 3 weeksbefore applying.

Step 2: Online Application

The employer applies for the autorisation de travail online at least 3 months before the planned start date.

Both the employer and the prospective employee receive an email confirmation once submitted.

Step 3: Approval and Notification

Once approved, both parties are notified. The employee must include the authorization when applying for a visa or residence permit.

Step 4: Administrative Requirements

The autorisation de travail must be recorded in the company’s register of employees and kept available for labor inspection agents.

Duration and Geographic Validity of the Work Authorization

The work permit is valid for the duration of the employment contract or assignment. In general, the initial authorization is valid for up to 12 months, renewable.

Work authorizations may apply:

  • To a specific employer only
  • Within a defined region (e.g., mainland France or a French overseas territory)

⚠️ Changing jobs or employers requires a new application.

Regulated Professions and Qualifications

If you wish to work in a regulated profession in France—such as medicine, law, or accounting—you must also hold a relevant recognized qualification or diploma. For example, foreign experts-comptables (accountants) must meet the same requirements as French nationals.

How Autorisation de Travail Affects Taxes in France

Obtaining an autorisation de travail is only the first step in becoming compliant in France. Once employed, foreign workers are subject to French income tax and social security contributions, just like French citizens.

Employers must:

  • Declare and withhold income tax at source (Prélèvement à la source)
  • Register the employee with URSSAF and other mandatory bodies
  • Comply with employment tax rules, including contributions to health insurance, pensions, unemployment, and more

📌 Learn about gross vs. net salary and employer obligations in our detailed article:
👉 Salary After Tax in France: What Employees and Employers Need to Know in 2025

Final Note: Stay Compliant, Stay Informed

The autorisation de travail process can seem complex, but with the right preparation and guidance, it becomes manageable. Always check the latest requirements, especially if you’re hiring or relocating across borders.

For tailored advice on compliance, taxation, or structuring employment in France, feel free to reach out to ESCEC International.

Salary After Tax in France: What Employees and Employers Need to Know in 2025

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When evaluating a job offer or planning a recruitment strategy in France, it’s essential to understand the difference between gross salary and salary after tax in France. Whether you’re an employee trying to estimate your take-home pay or an employer budgeting for a new hire, having clarity on how salaries are structured is crucial.

The French payroll system includes various deductions—such as social security, pension contributions, and income tax withheld at source—making the final amount received (net salary) significantly different from the gross salary mentioned in the contract.

Gross Salary vs Net Salary vs Salary After Tax in France

In France, salaries are broken down into three main categories:

  • Gross Salary: This is the salary stated in your employment contract. It includes the employee’s social contributions and serves as the base for calculating taxes and employer costs.
  • Net Salary Before Tax: This is the amount you receive after your social contributions are deducted but before income tax is applied.
  • Net Salary After Tax: This is your actual take-home pay—the amount deposited into your bank account each month.

Since 2019, income tax is deducted directly by the employer at source, based on the rate provided by the French tax administration (DGFiP). This rate can be personalized (based on your latest tax declaration) or neutral (a default rate applied if no data is available).

What Affects Your Salary After Tax in France?

Several factors can influence how much you actually take home each month:

  • Employment contract (permanent, fixed-term, apprenticeship)
  • Professional status (executive vs non-executive)
  • Working hours (full-time, part-time, or overtime)
  • Additional benefits (meal vouchers, transport reimbursements, bonuses)
  • Income tax rate (individualized or neutral)

All of these components affect the calculation of your net salary after tax. While simulation tools can give you an estimate, your actual income may vary depending on your full financial and personal profile.

For a precise breakdown based on your contract details, you can use the official salary calculator provided by URSSAF.

How Employers Estimate the Cost of Hiring

If you’re planning to hire, it’s important to consider the total employer cost, not just the salary offered to the employee. In addition to the gross salary, employers must also pay:

  • Employer contributions (social security, retirement funds, etc.)
  • Health insurance contributions (compulsory for most companies)
  • Possible benefits in kind (e.g. vehicle, meals, phone)

These expenses help define your total budget per employee and ensure compliance with labor and tax regulations in France.

Why Understanding Salary After Tax in France Matters

Understanding your salary after tax in France is essential for:

  • Negotiating fair compensation
  • Budgeting monthly expenses
  • Evaluating job offers with accuracy
  • Complying with legal obligations as an employer

Too often, candidates and employers alike focus only on the gross salary. However, what truly matters to the employee is how much is left at the end of the month—and for employers, it’s about knowing the true cost of employment.

To see how the latest updates to minimum wage affect net pay and employer costs, read our detailed guide:
👉 France Minimum Salary: What Changed on January 1st and Why It Matters

Need Personalized Support?

Talk to an Advisor About Hiring or Salary Structuring in France

Whether you’re an entrepreneur looking to hire your first employee or a job seeker evaluating your offer, we can help you:

  • Understand your net salary after tax based on your personal or professional profile
  • Navigate available hiring aids and tax advantages
  • Ensure salary levels comply with immigration, labor, and tax rules

Our team at ESCEC International offers expert advice tailored to your situation. Let us help you make informed decisions about employment in France.

France Minimum Salary : What Changed on January 1st and Why It Matters

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The France minimum salary—officially known as the SMIC (Salaire Minimum Interprofessionnel de Croissance)—was increased by 1.13%. This annual revaluation ensures that low-income workers maintain their purchasing power amid inflation.

The new rates are as follows:

  • €11.65 gross per hour
  • €1,766.92 gross per month based on a legal 35-hour workweek

This increase impacts not only minimum wage workers in France but also international professionals and companies hiring foreign talent.

👉 For the official announcement, visit the Welcome to France government portal.

Why the France Minimum Salary Affects More Than Just Low-Income Workers

Many foreign nationals working or planning to work in France are subject to income requirements tied to the SMIC, especially when applying for residence permits and work authorizations. The updated France minimum salary plays a direct role in:

  • Talent Passport visa applications
  • Multi-year residence permits for employees
  • Salary eligibility thresholds for company directors and startup founders.

Updated Salary Thresholds for Talent Passport Holders

Certain “Passeport Talent” categories require minimum earnings indexed to the SMIC, such as:

  • Highly skilled professionals
  • Founders or legal representatives of French businesses
  • Employees on a French employment contract

Following the SMIC revaluation:

  • Salaries must now reflect the new minimum multiples (e.g. 1.5x or 2x the SMIC)
  • For example, if a permit requires 1.5x SMIC, the minimum monthly gross salary is now €2,650.38
  • At 2x SMIC, the threshold is €3,533.84 gross per month

💡 Contracts or job offers falling below these new thresholds risk being rejected by French immigration authorities.

For more on work authorization rules, see our complete guide:
👉 France Working Permit Application Guide (2025 Edition)

Multi-Year Residence Permits Also Affected

In addition to the Talent Passport, several multi-annual residence permits tied to employment require salaries above the France minimum salary. These permits are reviewed at both the initial application and renewal stages.

Employers must now:

  • Adjust contracts to reflect the new SMIC
  • Ensure compliance before submitting visa or residence applications
  • Stay updated on future annual SMIC revaluations

What Employers Hiring Foreign Talent Must Know

If your company is hiring international employees or applying for a change of status for an existing foreign worker:

  • ✅ Verify that salary offers meet updated SMIC-linked requirements
  • ✅ Include the correct gross salary in the employment contract
  • ✅ Be aware of your obligations, including the employer tax (taxe employeur) tied to work permits and residence approvals

For a detailed explanation of this tax obligation, check out our related article:
👉 Taxe Employeur for Passeport Talent Explained

Frequently Asked Questions About the France Minimum Salary

❓ Is the France minimum salary net or gross?

The SMIC is calculated in gross amounts. The net minimum salary in France after social charges typically ranges around €1,398–€1,400 per month, though this can vary slightly depending on deductions.

❓ Does SMIC apply to part-time workers?

Yes. The SMIC applies proportionally to part-time workers, based on hours worked relative to a 35-hour week.

❓ Will there be another increase in 2025?

SMIC is reviewed every January. A new adjustment is expected on January 1, 2025, based on inflation and average wage indicators.

Summary: France Minimum Salary in 2024 and Its Impact

  • The France minimum salary increased to €11.65/hour or €1,766.92/month on January 1, 2024.
  • This update affects work contracts, residence permits, and Talent Passport eligibility.
  • Employers and foreign nationals must ensure all contracts meet the new thresholds to remain compliant.
  • Immigration applications based on outdated salary criteria may face delays or rejections.


    Ask your question:

    Fact Sheet: France Working Permit Application Guide

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    If you’re planning to become an employee in France, obtaining a France working permit is a mandatory step—regardless of the duration of your stay or the nature of your employment.

    However, if you are a national of the European Union (EU), European Economic Area (EEA), or Switzerland, you’re allowed to work in France without needing a work permit. You can consult this official fact sheet for more details.

    For others, the France working permit may be granted either as part of a visa or residence permit or issued separately.

    Types of Residence Permits That Allow Employment

    Some residence permits automatically serve as work permits. These include permits issued under the:

    • “Talent Passport”
    • Intra-company transfer programs

    When such a permit is granted, it covers the right to work during its entire period of validity—no additional steps are required. For more, see the “Residence Permits” section on official platforms.

    When You Need a Separate Work Permit

    In some situations, a separate work authorization must be obtained before starting the job. This generally applies to:

    • Permanent hires (excluding “Talent Passport” profiles)
    • Temporary or fixed-term contract workers
    • Employees changing employers
    • Posted workers (outside intra-company mobility schemes)

    In these cases, the employer must submit the work permit application before the visa or residence permit can be granted.

    Who Needs a France Working Permit?

    • Foreign employees recruited by a French company
    • Founders of startups
    • Company directors
    • International investors
    • Accompanying family members of permit holders

    Special Note: Regulated Professions

    If you’re aiming to work in a regulated profession such as healthcare, law, or accounting, you must also hold the required professional diploma or license in addition to your work permit.

    Exemptions from Needing a France Working Permit

    The following individuals are exempt from the work permit requirement:

    • Citizens of the EU, EEA, or Switzerland
    • Non-EU nationals already working in another EU country
    • Employees working in France for less than 3 months

    Work Permit Duration and Validity

    Length: Generally matches the employment contract or assignment letter. Some permits may be valid for 12 months, renewable.

    Scope: Some permits are limited to a specific:

    • Employer
    • Job function
    • Geographic area within France

    Different authorizations are required for mainland France and overseas territories.

    🔄 Note: Changing your job or employer requires a new work permit.

    How to Apply for a France Working Permit

    Step-by-Step Guide

    Step 1: Labor Market Test (if applicable)
    The employer must publish the job offer on France Travail or APEC for at least 3 weeks, if the role is subject to employment market verification.

    Step 2: Online Application Submission
    Employers submit the application via the official portal, ideally 3 months before the expected employment start date.

    Step 3: Confirmation and Issuance
    Once processed, both the employer and the foreign employee receive confirmation. If approved, the permit is sent by email and must be attached to the visa or residence permit application.

    Step 4: Company Records
    The permit must be added to the “registre unique du personnel” (personnel register) and made available to labor inspectors.

    Need help understanding the tax implications when hiring? Read our detailed article on taxe employeur for Passeport Talent holders.

    What Is “Opposability of Employment Situation”?

    Employers may be required to prove there are no suitable local candidates before hiring a foreign worker. This means posting the role on national job boards (France Travail/APEC) for a minimum of three weeks.

    Exemptions from this requirement include:

    • Roles in high-demand sectors (“métiers en tension”)
    • Graduates with a Master’s degree whose job aligns with their training and pays at least €2,702.07 gross/month
    • Nationals from countries with bilateral agreements with France

    A simulator is available on the ANEF website to check if the employment situation test is necessary.

    Documents Required for the France Working Permit

    A detailed checklist of documents is available on the ANEF website. This includes:

    • Employment contract
    • Company registration documents
    • Proof of job posting (if applicable)

    Cost and Employer Obligations

    While applying for a France working permit is free, employers are required to pay a tax to the French Tax Authority (DGFiP) when the employee receives their first residence permit (excluding intra-company transfers).

    This tax is declared along with the company’s annual VAT return. For details, refer to our complete guide on employer tax obligations.

    Renewing or Modifying a France Working Permit

    There are two main scenarios:

    • Renewal: When continuing with the same job/employer.
    • Change of Status: If switching from employment to launching a business or another status. Applications must be submitted within two months of the permit’s expiration date.

    ⚠️ Some statuses, such as posted workers, do not allow for permit extension. Once the assignment ends, they must leave France unless specific conditions are met.

    Still Have Questions About the France Working Permit?

    For the latest updates, requirements, and official procedures, refer to the official Welcome to France portal. You can also explore our other expert articles and consulting services at ESCEC International.