Starting a business in
🇫🇷France
Checked November 4, 2026 · How we score
Corporate tax
25%
Top income tax
45%
Setup from
$2,000
all-in, first year
Time to form
10 days
can be done remotely
Taxes in France
| Corporate income tax | 25% 25% standard; 15% on the first EUR 42,500 of profit for SMEs with turnover up to EUR 10m owned by individuals. Temporary exceptional surtax on very large groups in 2025–2026. IP box 10% on qualifying IP income. |
|---|---|
| Personal income tax (top) | 45% Progressive 0%–45% (45% above about EUR 180,000) plus a 3%/4% high-income contribution above EUR 250,000, and 17.2% social charges on capital income. The impatriate regime exempts 30% of salary for 8 years. |
| Tax system | Worldwide income |
| Capital gains tax | 30%30% flat tax (PFU) = 12.8% income tax + 17.2% social charges; the 2026 social security funding law raises social charges on some capital income to bring the PFU to about 31.4%, so verify before filing. |
| Dividend withholding (non-residents) | 25% |
| VAT / GST | 20% |
| Social security | Employer about 42%–45%, employee about 22%; self-employed 22%–45% depending on regime. Dividend WHT 25% for companies (12.8% for non-resident individuals), reducible by treaty. |
Forming a company in France
| Usual entity | SAS / SARL |
|---|---|
| Minimum capital | $1 |
| Setup cost (all-in) | $2,000–$5,000 |
| Annual running cost | $3,500–$8,000 |
| Time to incorporate | 10 days |
| Form remotely as a foreigner | Yes |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | Yes |
| Statutory audit for small companies | No |
| Business banking for non-residents | Hard |
Residency and visas
No digital nomad visa; French Tech Visa and Talent Passport routes suit founders and employees of innovative companies. Non-EU founders typically need a company with sufficient revenue or funding. Citizenship takes 5 years of residence.
| Digital nomad visa | No |
|---|---|
| Golden visa | No |
| Ease of residency for founders | 4/5 (1 = easiest) |
Special tax regimes
Impatriate regime (Art. 155 B)
30% of salary exempt from income tax for up to 8 years for people recruited from abroad.
French Tech Visa / Talent Passport
Fast-track residence for founders, employees and investors in innovative companies.
JEI and CIR
Innovative young company status (JEI) and the Research Tax Credit (30% of R&D spending) reduce costs for deep-tech startups.
BSPCE
Founder and employee share warrants with a favourable 12.8%–30% capital gains regime.
Pros and cons
Why founders pick France
- Strong R&D and innovation tax credits
- Large EU market with Station F ecosystem
- SAS formation is flexible and online
- Impatriate regime for incoming talent
Watch out for
- Very high social charges (about 42%–45% employer)
- Personal tax up to 45% plus surtaxes and 17.2% social charges
- Bureaucracy and French-language filings
- Often changes tax law in finance laws
- Local bank account takes time for foreigners
Best for: Deep-tech and AI startups using research credits · Founders targeting the French and EU market · Employees using the impatriate regime
France: common questions
Can a foreigner open a company in France?
Yes. A SAS or SARL can be registered online via the Guichet Unique (INPI), including by non-residents. You need a French registered address, a capital deposit in a French bank and a legal announcement; registration takes 1–2 weeks.
What is the corporate tax in France?
25% standard rate, with 15% on the first EUR 42,500 of profit for qualifying SMEs. Large groups face a temporary exceptional surtax in 2025–2026.
What is the French Tech Visa?
A fast-track Talent Passport for founders, employees and investors of innovative companies, with a 4-year residence permit and a family visa.
What is the French flat tax?
The prélèvement forfaitaire unique (PFU) taxes dividends and capital gains at 12.8% income tax plus 17.2% social charges (about 30%), with a 2026 social-charge increase for some income. You can opt for progressive rates instead.
Does France have a tax regime for newcomers?
Yes. The impatriate regime exempts 30% of salary (and some foreign income) from tax for up to eight years for employees recruited from abroad, but not for freelancers.
Sources
- Direction générale des Finances publiques (impots.gouv.fr)
- Service-Public – Create a business
- PwC Worldwide Tax Summaries – France
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.