French Inpatriation Tax Regime Service
Are you a company based out of France looking to open a subsidiary and hire a country manager or employee in France? Are you an entrepreneur looking to open a company in France and move there right away? Are you a French company looking to transfer an expert or social representative from abroad?
If so, this service is for you.
You’re probably asking yourself, “who would want to move to France when French taxation is so heavy?” The very attractive solution to this question is the French Inpatriate Tax Regime. This regime can also be applied to employees and social representatives such as the president of an SAS.
To be eligible for this scheme you must meet the following 3 criteria:
- The inpat has been living out of France for 5 years.
- Recruitment is carried out by the incoming investor or by its subsidiary in France.
- The job will turn the employee into a French tax resident.
A limit in the duration of the employment agreement is acceptable.
The yearly inpatriate’s compensation has to be subdivided in 2 portions: inpatriation premium and compensatory allowance.
This scheme will allow you to benefit from 4 tax exemptions:
- 100 % private income tax exemption for both:
- • The inpatriation premium for a duration of 8 years
- • A limitless compensatory allowance
- 50 % income tax exemption for certain income sources outside France related to international property, dividends on interest and capital gains on the transfer of assets.
- 100 % French wealth tax exemption for assets or properties located out of France. There is neither an exemption limit on the value of the assets, nor a limit on the duration of the exemption.
- 100 % social contribution exemption in France: in order to avoid double payment of inpatriate’s social contributions in both the inpat’s country of origin and France, initial social contributions paid in the country of origin are deductible against French regular social contributions.
1. This corresponds to the standard level of salary for the job in the domestic employment market.
2.This is to compensate the international mobility requested from the inpatriate moving into France.
3. social security, retirement, and provident
You can now offer a tax friendly scheme to your country manager with a lower rate of income tax. As this regime has specific features and calculation methods, we offer assistance in this process. We will figure out the breakdown between the inpatriation premium and compensatory allowance, pursuant to best practices of domestic employment market.
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