International freelancer: best France structure 2026

Quick answer. A French freelancer invoicing business clients in another EU country does not charge French VAT: it is reverse-charged by the customer (art. 259-1 of the French Tax Code). The European services declaration (DES) is due from the very first euro. The right legal form (micro, EURL or SASU) is then chosen based on turnover and the way you wish to be paid.

Selling consulting, design, development or marketing to foreign clients does not change your trade, but it does change your obligations. The question is not only about tax: it blends legal form, social contributions and a VAT dimension that is often overlooked. Many freelancers find out too late that they should have filed a European services declaration from their first intra-EU invoice.

This article compares the three most common structures (micro-entreprise, EURL, SASU) specifically for an export-oriented activity, and details the VAT treatment depending on whether your client is in the EU, the United Kingdom or the United States.

A common misconception is that invoicing a foreign client is inherently tax-efficient. It is not. Your company or sole proprietorship remains established in France, so it stays taxable in France on its profit. What changes is the VAT treatment and, in some cases, the risk of being deemed to have a permanent establishment abroad.

The decisive point is the client's location and status (taxable business or private individual). For business-to-business (B2B) services, the principle is that the service is taxable where the customer is established (art. 259-1 of the French Tax Code, transposing art. 196 of Directive 2006/112/EC).

Our reading. Before choosing a status, map your clients. A freelancer invoicing 90 % German or Dutch agencies does not have the same reporting duties as one selling to French individuals. The structure comes afterwards, not first. For the general mechanics of the trade, our article on the status, costs and VAT of freelancers in France sets the foundations.

Business clients in the EU: reverse charge#

When you invoice a service to a taxable business client in another Member State, French VAT does not apply. The client reverse-charges the VAT in their own country. On the invoice, you state the client's intra-EU VAT number and the wording "Reverse charge" (Autoliquidation).

This triggers a frequently forgotten obligation: the European services declaration (DES). It is due from the first euro of invoicing, as a monthly return filed within 10 days of when VAT becomes chargeable (art. 289 B of the French Tax Code, official guidance BOI-TVA-DECLA-20-20-40). Our file on the VAT rules for intra-Community services covers the special cases.

Clients outside the EU (United States, etc.)#

Where the business customer is established outside the European Union, the service is deemed located outside France: it is outside the scope of French VAT. In that case there is no DES, since this declaration only covers intra-EU flows.

British clients after Brexit#

The United Kingdom has been a third country since 1 January 2021. A B2B service to a British client is therefore outside the scope of French VAT, with no European reverse charge and no DES. Freelancers working with London still confuse this with the intra-EU regime.

The underestimated risk. Forgetting the DES. It has no triggering threshold, and its absence is an irregularity even where no VAT is due. Setting up the monitoring from the first month of intra-EU activity avoids a tedious catch-up. An invoicing and accounting tool such as Pennylane makes this recurring reporting easier.

The VAT rules above apply whatever your status. The choice of structure mainly affects your social contributions, your taxation and your ability to draw a salary or build up capital.

Micro-entreprise#

Simple and inexpensive, it suits start-up phases and small volumes. Contributions are computed as a percentage of cashed-in turnover, with no deduction of actual expenses. For an international freelancer with few costs, it is often enough for the first years. The 2026 micro turnover ceiling for services and liberal activities (BNC) is 83,600 euros (to be checked on the URSSAF portal before registration, as this amount is revalued every three years). Note: this micro ceiling is decoupled from the VAT franchise thresholds.

EURL#

The EURL is by default subject to income tax, with an option for corporate tax. The sole manager-owner is self-employed. It allows actual expenses to be deducted and fits as soon as professional costs become significant or turnover exceeds the micro framework.

SASU#

The SASU is subject to corporate tax: standard rate of 25 %, and a reduced rate of 15 % on the first 42,500 euros of profit for SMEs meeting the conditions of art. 219-I-b of the French Tax Code (fully paid-up capital, held at least 75 % by individuals, turnover below 10 million euros). The president is treated as an employee: social protection closer to that of an executive, but a higher pay cost. It also makes future investor entry easier.

Trade-off. EURL and SASU are decided less by the end client than by your remuneration and growth plans. A SASU without salary lets you manage dividends and capitalisation; an EURL under income tax can be more efficient as long as profits stay modest and are fully drawn. Our comparison of the day rate and costs of the independent consultant extends this on the pricing side.

The contribution ranges often quoted (for instance "20-25 % for micro versus 42-45 % for an EURL") are indicative and vary widely depending on the exact nature of the activity and the base used. We recommend a personalised calculation rather than a general rule.

A freelancer often asks: "will my foreign client withhold tax on my fees?" There is no general withholding tax on a freelancer's services. Its existence and rate depend on the domestic law of the client's country and on the applicable tax treaty. For common services (consulting, development, design), many treaties allocate taxation to the prestataire's country of residence alone, with no withholding in the client's country.

What the tax authority looks at. Beyond VAT, the authority checks that your activity is genuinely connected to France and that you do not have, abroad, a fixed place of business that would amount to a taxable permanent establishment locally. Our analysis of the permanent establishment risk for a freelancer sets out the criteria to watch.

1. List your clients by location (EU, non-EU, United Kingdom) and by status (business or individual).
2. Request your intra-EU VAT number as soon as you invoice B2B within the EU.
3. Check and keep the intra-EU VAT number of each European business client.
4. Set up the monthly DES filing from the first intra-EU invoice.
5. Estimate your prospective turnover and compare micro, EURL and SASU on social and tax aspects.
6. Secure your invoice wording (reverse charge, out of scope) depending on the client's country.
7. Have your set-up validated by a registered professional before signing your first international contracts.

A frequent case. Recently, a freelance director approached us after eighteen months of activity: he was invoicing European studios under the micro regime and had never filed a DES, believing that the absence of VAT exempted him from any declaration. The catch-up of monthly returns and the regularisation could be organised, but it would have been avoided by simple initial set-up. This is exactly the kind of assignment covered by our French CPA support for international activity.

• The 2026 VAT franchise thresholds for services are 37,500 euros (threshold) and 41,250 euros (upper threshold); for sales of goods, 85,000 and 93,500 euros.
• These VAT franchise thresholds are independent from the micro regime ceilings: you can leave the franchise while remaining a micro-entrepreneur.
• The DES is due from the first euro for intra-EU B2B services, with no threshold.
• The United Kingdom remains a third country: no European reverse charge and no DES on those flows.

As an expert-comptable and statutory auditor registered with the Ordre des experts-comptables of the Ile-de-France region, we support freelancers and companies with international client bases on these trade-offs. This article is for information; a decision tailored to your situation requires reviewing your contracts, your flows and the law in force. For corporate tax advice, see also our corporate tax advisory and our accounting expertise for international activities.