Roche & Cie

France: Towards greater attractiveness for foreign investors

Often ignored, France nevertheless has an arsenal of measures in favor of foreign investors and workers.

 

The “passeport talent” card also known as “French Tech Visa” for entrepreneurs-investors

Created in 2016, this new system consists of granting multi-year stays cards to “new talent” wishing to settle in France and participate in its international influence.

With a maximum renewable period of 4 years, this residence permit allows foreign managers and employees to pursue a professional activity without applying for a work permit in advance. This residence permit is available to people with one of the following 10 categories: young qualified graduates (master’s degree or equivalent), highly skilled workers, researchers, entrepreneurs, innovative economic projects, economic investors, performers, persons of national or international renown in the scientific, literary, artistic, intellectual, educational or sports fields.

To benefit from this, the applicant “entrepreneur” must be able to present a credible professional project and demonstrate by all means that he will be able to carry out this project. Moreover, he/she must justify an investment at least equal to 30,000 euros.

For more information, please visit the official website: http://visa.lafrenchtech.com/

 

The taxation of impatriates

Foreigners required to work in a French company can benefit from a specific tax regime offering many advantages:

  • Exemption of the impatriation fees: the income supplement received by the employee in respect of his arrival in France is exempt from income tax. The bonus is allowed for its actual amount if it is entered separately in the employee’s contract of employment. It may also be determined on a flat-rate basis if the employee was directly recruited abroad by a company established in France. Since July 2016, impatriates can benefit from this measure for 8 years (compared with 5 years previously).
  • Exemption of 50% of income from movable assets arising from assets held abroad.
  • Temporary exemption from the Wealth tax  (I.S.F.) for property located outside France. This system applies until 31 December of the 5th year following that of the transfer of residence in France.

 

Financial investments in France wealth tax exemption

Non-resident investors have not been forgotten and can also enjoy attractive tax measures. Indeed, financial investments made in France by non-domiciled persons (within the meaning of the tax regulations) are exempt from the wealth tax. These include, inter alia, sight deposits or forward deposits in euro or currency, shares, bonds and securities, life insurance contracts, etc.

The combination of these various measures, as well as the efforts made to reduce the cost of labor (Tax Credit for Competitiveness and Employment, CICE), led to a significant increase in foreign investment, which jumped of 16% from the previous year.


Contact us for more information


Sandy Dalmas


Cabinet Roche & Cie, English speaking accountant in Lyon, France.
Specialist in Real-Estate and Non-resident taxation.