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Is it legal to freelance from abroad?

Whether you're looking for flexibility, travel, nomadism or a way to keep up with an expatriate spouse, freelancing can open up new career prospects, free of geographical constraints. But is it legal to freelance from abroad? What administrative formalities need to be complied with? How can double taxation be avoided? And what about invoicing? Find out what you need to know before taking the plunge.

Who benefits from freelance status?

The word "freelance" is an Anglicism that applies to any self-employed person, regardless of their status or sector of activity. Unlike employees, freelancers have no subordinate relationship with the companies they work for.

A self-employed freelancer can choose from a number of different legal forms:

  • The simplified micro-enterprise scheme
  • Sole proprietorship with limited liability (EIRL)
  • The single-member company, with a choice between the single-member limited liability company (EURL) and the single-member simplified joint-stock company (SASU).
  • International freelance administration

When it comes to setting up and managing your accounts, the micro-enterprise system is the easiest and quickest to implement, with limited costs.

Is it possible to freelance from abroad?

With the geographic freedom that goes with it, freelance status is the perfect compromise for maintaining a professional activity during an expatriation, especially for those who follow their spouses abroad.

It's a status that also appeals to travel enthusiasts, who can combine slow travel with work. A concept known as digital nomadism.

In concrete terms, then, there are a number of formalities that you need to take into account if you want to work as a freelancer from abroad in complete legality. In addition to the formalities linked to the company itself, you need to check beforehand whether a work permit will be required in the host country.

Company address

Freelancers of French nationality wishing to establish their head office in France before or after expatriation have several options.

Keep a personal address in France and domicile your business there

This is possible, for example, for freelancers who maintain a residence in France, or who use a relative's address. However, it is imperative that you plan to pick up your mail regularly enough to ensure that you don't miss an important document.

Using a company domiciliation service

Domiciliary companies are specialized businesses with prefectoral approval to legally domicile other companies. You can then choose according to the services offered, but also according to the desired geographical location for the head office.

Taxation of freelancers working abroad

This means that you can legally work abroad as a freelancer. However, this means paying social security contributions in the country where the company is domiciled, as well as complying with sales tax obligations.

Tax residence for freelancers

A self-employed or salaried worker who travels between several countries has his or her tax residence defined in France in various cases:

  • He spends at least 183 days in France
  • He has a professional activity in France
  • He has his main family and/or business interests in France.

Taxation in the host country

In the case of expatriation, it is advisable to find out beforehand whether a tax treaty exists between the host country and France. Many countries have signed international tax treaties with France to define the priority of taxation between them. The impots.gouv.fr website lists all international treaties, with countries listed in alphabetical order.

Consequences for freelancers working abroad :

  • The existence of a tax treaty means that freelancers are liable to pay tax on their main residence.
  • In the absence of an international treaty, there is a risk of double taxation, with no certainty that a deduction can be made.

French freelancers abroad: how to invoice?

French freelancers based abroad may be called upon to carry out assignments for clients from a wide variety of backgrounds. Here again, there are a number of formalities not to be overlooked.

Within the European Economic Area

To issue invoices to customers in the European Union, you need to have an intra-Community VAT number. This is a legal obligation that applies to all freelancers, even those who do not exceed the limits defined for VAT exemption. To obtain this number, which must appear on invoices, all you need to do is contact the company tax office (Service des Impôts des Entreprises - SIE) responsible for the head office of your business.

Outside the European Union

The intra-Community VAT number is not required outside the European Economic Area. When invoicing in a foreign currency, both the currency and euro amounts must be entered, along with the exchange rate. In all cases, amounts received must be converted into euros for sales declarations, payment of social security contributions and taxation purposes.