Recruiting a Foreign Employee: Costs for Employers in France (2025 Update)

Hiring a foreign employee in France in 2025 involves navigating specific costs and regulations, including mandatory taxes paid to the French tax authority (DGFiP) and the Office Français de l’Immigration et de l’Intégration (OFII). For employers seeking to recruit international talent or manage seconded workers, understanding these financial obligations is crucial. This guide outlines the 2025 costs, exemptions, and payment processes for hiring foreign employees in France.‍

Employer Tax Paid to the DGFiP

When hiring a foreign national or hosting a seconded worker in France for the first time, employers must pay a mandatory tax to the DGFiP. This tax applies when a foreign employee starts work or is admitted as a resident employee in France.

Payment Deadline

The DGFiP tax is declared and paid annually via the VAT return for the following year, covering all hires made in the previous 12 months. Employers must ensure timely compliance to avoid penalties.

Tax Amount (2025 Rates)

The cost of the DGFiP tax varies based on the employee’s contract duration:

• Short-term contracts (less than 12 months): Lower rates apply.
• Long-term contracts (12+ months): Higher fees are incurred.

The tax varies based on contract duration and salary:

• Contracts ≥ 12 months: 55% of the gross monthly salary, capped at 2.5 times the SMIC (minimum wage).
• Contracts 3 to <12 months: Fixed amounts between €50 and €300, depending on the salary (e.g., €74 if salary ≤ SMIC, €210 if salary is between SMIC and 1.5x SMIC, €300 if >1.5x SMIC).
• Seasonal contracts: €50 per month of activity (complete or incomplete).
• Young professionals (bilateral agreements): €72.
• Language assistants: €0.

Exemptions

Certain groups are exempt from the DGFiP tax, including:

• Public institutions: Research organizations, universities, and scientific foundations.
• EU/EEA/Swiss citizens and their family members.
• Holders of specific residence permits, such as "Talent Passport," "ICT," or "Student" permits.
• Employees working in France for less than 3 months.
• Domestic workers employed in private households.

How to Pay

The DGFiP tax is paid alongside VAT using:

• Form 3517-S-SD: For employers under the simplified VAT regime (annual revenue <€15,000).
• Form 3310-A-SD: For employers under the normal VAT regime or those not liable for VAT.

OFII Tax and DGFiP Tax Are the Same

• Historical Context: Previously, the employer tax for hiring foreign workers (non-EU/EEA/Swiss citizens) was managed and collected by the Office Français de l’Immigration et de l’Intégration (OFII), which is why it was commonly referred to as the "OFII tax." This tax is levied on employers who hire a foreign employee or host a seconded worker in France for the first time, as outlined in Article L. 436-10 of the CESEDA (Code de l'entrée et du séjour des étrangers et du droit d'asile).
• Change in Management (Since January 1, 2023): As of January 1, 2023, the management and collection of this employer tax were transferred from OFII to the Direction Générale des Finances Publiques (DGFiP), as stipulated in the French Finance Act for 2023 (Loi n° 2022-1726 du 30 décembre 2022, art. 80). This means that what was previously called the "OFII tax" is now collected by the DGFiP and is declared and paid annually via the VAT return for the following year (e.g., taxes for 2023 hires are declared and paid in February 2024).
• Current Terminology: The tax is now officially referred to as the employer tax or taxe due par les employeurs de main d’œuvre étrangère (tax on the employment of foreign workers). The term "OFII tax" is a legacy name from when OFII managed it, but it is no longer a separate tax. The confusion in the provided document arises because it lists "OFII Immigration Tax" and "DGFiP Employer Tax" separately, which may suggest they are distinct. However, this appears to be a miscommunication or outdated phrasing, as the tax is singular and now handled by the DGFiP.

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Why Understanding These Costs Matters

For businesses expanding into France or hiring international talent, compliance with immigration taxes is essential to avoid legal and financial issues. By understanding the 2025 costs for hiring foreign employees in France, employers can budget effectively and ensure smooth onboarding for their global workforce.

Disclaimer

Immigration laws and policies change frequently and may vary by country or nationality. While we strive to provide accurate and up-to-date information, we recommend doing your own due diligence or consulting official sources. You’re also welcome to contact us directly for the latest guidance. Jobbatical is not responsible for decisions made based on the information provided.