France

France Freelance Tax Regimes 2025: Micro-Entreprise vs Réel Simplifié

• France

Choose the Right French Freelance Regime in 2025

France offers two primary tax regimes for freelancers: micro-entreprise and régime réel simplifié. Selecting the optimal status in 2025 hinges on turnover, expense structure, and desired administrative complexity.

Micro-Entreprise Overview

Ideal for small service providers, the micro regime caps annual turnover at €77,700 for services and €188,700 for merchandise sales. Taxes are calculated on a flat-rate expense deduction (34% for liberal professions, 50% for commercial services), with social charges applied to gross revenue. Advantages include simplified bookkeeping, quarterly social charge payments via URSSAF, and optional VAT exemption (franchise en base). However, actual expenses cannot be deducted beyond the flat allowance.

Régime Réel Simplifié

Freelancers exceeding turnover thresholds or with significant business expenses benefit from the réel regime, which allows deduction of actual costs, amortisation, and VAT credits. Accounting obligations include double-entry bookkeeping, annual balance sheet preparation, and VAT filings. Social charges align with declared profit, improving cash flow for high-expense businesses.

Social Security Contributions

Micro-entrepreneurs pay social charges at fixed rates (21.2% for liberal professions, 12.3% for merchandise) while réel regime freelancers base contributions on net profit, adjusted via the Déclaration Sociale des Indépendants. Joining an approved management centre (CGA) reduces tax penalties and unlocks advice.

Transitioning Between Regimes

Automatic transition to the réel regime occurs when thresholds are exceeded for two consecutive years. Freelancers may voluntarily opt into the réel regime by notifying the tax office before February 1. Conversely, returning to the micro regime requires respecting thresholds for two consecutive years.

VAT Considerations

Micro-entrepreneurs can remain VAT-exempt until surpassing €36,800 for services (€45,900 tolerance) or €91,900 for goods (€101,000 tolerance). Under the réel regime, VAT is collected and deducted based on actual transactions, benefiting businesses with significant input VAT.

Decision Checklist

  • Analyse annual expenses versus flat-rate allowances.
  • Forecast turnover growth and VAT obligations.
  • Assess administrative capacity and accounting support.
  • Use our France salary calculator to compare social charges and net income.

Tip: Consult an expert-comptable to evaluate transition timing and ensure compliance during regime changes.

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