France Simplifies Tax Rules for Employers Hiring Foreign Workers

France Simplifies Tax Rules for Employers Hiring Foreign Workers

Andreia Mendes
min read


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In a move to attract international talent and address labor shortages, the French government has relaxed regulations concerning the tax obligations of companies hiring foreign nationals from outside the European Union (EU), European Economic Area (EEA), and Switzerland. 

Key Changes:

  1. Reduced Tax Burden: Companies are now exempt from paying the foreign worker tax for employees holding French residence permits (who are exempt from work authorization).
  1. Streamlined Payments: Previously, employers subject to the tax faced an invoice after each hire, resulting in multiple payments throughout the year. The tax is now paid once annually, simplifying administration and financial planning. The French government provided a help sheet for calculating this tax. 

These changes aim to make France a more attractive destination for skilled talent during a time of labor shortages across various sectors, as well as make it easier for French employers to recruit and retain foreign skilled workers. However, this shift will also require adjustments.

Companies will now be responsible for actively identifying employees subject to tax each year and ensuring accurate budgeting and financial planning to handle the new annual payment system.

Our team of France-based experts can help you easily navigate global talent hiring and changing regulations in France to ensure compliance. Jobbatical guarantees employers and talents full support throughout the entire relocation process, from immigration and settling-in to renewals. Request a free demo today.

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