In France, a person who invoices a first client and registers as self-employed can be in business within the week. The micro-entrepreneur status, formerly auto-entrepreneur, was designed to make this easy. It is popular with freelancers, consultants, small online sellers and people running a holiday rental. It is also full of small traps, which is why it deserves a careful read before you pick it.
What is the micro-entrepreneur status in France?
It is a simplified regime for an individual business. You register for free online, you pay social contributions as a percentage of your turnover, and you keep simple books. There is no capital to put in. Your contributions are zero if you invoice nothing, and you do not have to hire an accountant.
It suits people whose costs are low. If you spend a lot of money on equipment, your contributions are still calculated on what you invoice, without deducting expenses. A company or a different tax regime can then be cheaper.
How do you register as self-employed in France?
- Check your right to settle and your activity. EU, EEA and Swiss citizens can set up without work authorisation (see residence card in France for EU citizens). A regulated profession needs a diploma or authorisation.
- Declare your activity online on the Guichet des formalités des entreprises (formalites.entreprises.gouv.fr), from one month before you start to fifteen days after. You are entered in the national business register.
- Receive your SIRET number, the business identifier, then create your account on the Urssaf micro-entrepreneur site.
- Choose monthly or quarterly declarations. You declare your turnover and pay contributions even if you invoiced nothing (declare 0). The first declaration comes at the earliest 90 days after the start.
- Open a dedicated bank account. It is mandatory immediately for a commercial activity, and otherwise once you exceed €10,000 of turnover in two consecutive years (see opening a bank account in France).
- Keep a revenue book and issue invoices with the legal mentions. Keep them ten years.
Registration is free in most cases (€23.21 for a commercial agent entered in the special register).
How much do you pay as a micro-entrepreneur in France?
Contributions are calculated on turnover. In 2026, the Urssaf rates are: 12.3% for the sale of goods, 21.2% for commercial or craft services, 25.6% for non-regulated liberal activities, 23.2% for regulated liberal professions attached to the Cipav and 6% for a classified furnished tourist rental.
You can opt for a versement libératoire, a small extra percentage that settles your income tax on this income: 1% for sales, 1.7% for commercial services and 2.2% for non-commercial profits, according to Service-Public Entreprendre. It requires that your household's reference tax income two years earlier does not exceed set limits per tax share. Request the option from Urssaf before 30 September for the following year, or within three months of creating your business. Otherwise your profit is taxed under the usual regime with a flat allowance.
What are the turnover and VAT thresholds for the self-employed in France in 2026?
The ceilings in 2026 are €203,100 for sales and accommodation, €83,600 for services and liberal activities, and €15,000 for a furnished tourist rental that is not classified. Going over once does not push you out: you switch to a standard tax regime only if your turnover is above the ceiling two years in a row. For VAT, you do not charge it below €85,000 for sales and €37,500 for services, with increased thresholds of €93,500 and €41,250. If you exceed the increased threshold during the year, you charge VAT from the day you cross it.
Since 1 September 2026, every business in France must be able to receive electronic invoices through a state-approved platform, and issuing them becomes compulsory for micro-businesses on 1 September 2027.
What are the common mistakes?
- Not declaring zero. A missing declaration costs a €60.10 penalty and contributions are increased by 5% (monthly declaration) or 15% (quarterly) for each missing declaration. Two years of zero turnover or no declaration can lead to removal.
- Confusing turnover with profit. Contributions apply to what you receive, not to your net.
- Going over the VAT threshold.
- Holding two micro-businesses. You cannot have more than one sole proprietorship.
- Forgetting the country where you owe contributions. If you keep working for clients in your old country, European rules decide in which country you pay. Ask before you start.
How does it work in the overseas departments?
Rates are reduced at the beginning (outside Mayotte): one sixth of mainland rates until the end of the seventh calendar quarter after the start, half until the end of the third calendar year, then two thirds. For commercial services this gives 3.6%, then 10.6%, then 14.2%. VAT is 8.5% standard in Guadeloupe, Martinique and Réunion, and not applicable for now in French Guiana and Mayotte. See living in the French overseas departments.
Is being self-employed in France with this status right for you?
If you offer services with few costs, it is hard to beat for simplicity. If you want a corporate structure, employees or heavy investment, speak to a chartered accountant. For the other side of the coin, a salaried job, see working in France, and for your income tax, tax residency in France.
How is income tax calculated for a micro-entrepreneur?
If you do not opt for the flat-rate payment, the tax authority applies an allowance to your turnover, and the result is added to the rest of your household income. The allowance is 71% for sales of goods, 50% for commercial and craft services and 34% for liberal professions (non-commercial profits), with a minimum of €305. Furnished tourist rentals have their own, lower rates, which have changed recently. This is not a social contribution: it is just the way the taxable profit is computed. Use your own numbers on the official simulator, and keep the figures separate from social contributions.
What does it mean to be self-employed in France if you stop working?
Nothing is charged for a quarter without turnover, but you still declare it. After 24 months (eight consecutive quarters) without declared turnover, the Urssaf can remove you from the register. If you stop for good, you declare the end of activity online on the Guichet des formalités des entreprises. Do not simply stop declaring, because missed declarations carry penalties.
Which alternatives exist if you are self-employed in France with high costs?
When your costs are high, the micro regime can hurt, since contributions apply to turnover without deducting expenses. A company or the real-profits regime may then cost less, but it brings more bookkeeping and often an accountant. An accountant is not compulsory for a micro-entrepreneur. Ask for a quote from a chartered accountant if your annual costs are a large share of your turnover, if you plan to hire or if you expect to pass the thresholds.
Your health cover as a self-employed worker follows the French system once you are registered; the steps are in healthcare in France for expats. For the residence side, see residence card in France for EU citizens.
Before you register, ask a chartered accountant (expert-comptable) or the Urssaf to confirm that this status and these rates fit your activity.