Invoicing as an expat Thread poster: AkagamiLLC
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AkagamiLLC
France
Local time: 13:32
English to French
+ ...
Hi folks!
I've been a freelancer for about 15 years.
I've always used the simplified French self-employed "auto-entrepreneur" company type to easily issue invoices to my clients, without bothering with yearly reports, VAT and whatnots.
But I left France about six months ago and as an expat, I wonder how I should proceed.
I can keep that French status, but it charges me 21% of my income for services I won't use (social welfare, training programs, retirement fund...).
... See more Hi folks!
I've been a freelancer for about 15 years.
I've always used the simplified French self-employed "auto-entrepreneur" company type to easily issue invoices to my clients, without bothering with yearly reports, VAT and whatnots.
But I left France about six months ago and as an expat, I wonder how I should proceed.
I can keep that French status, but it charges me 21% of my income for services I won't use (social welfare, training programs, retirement fund...).
If I create a company where I am currently (Colombia), I was told I would have to pay 35% in taxes, which means I would make much less, or I would have to increase my rates.
I was advised to create a company in the neighboring Panama, but the firm I contacted to set up a company and a bank account wants to charge me some yearly $3000, which is not much less than the taxes I pay each year to the French government, with extra hassle, I presume.
If I have to choose between these two, I prefer to sponsor the French social welfare system rather than a Panama law firm...
Any expats / digital nomads around? What can you recommend me?
Cheers! ▲ Collapse
| | | | Steve Robbie
United Kingdom
Local time: 12:32
Member (2017)
German to English
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| | Services you 'won't use'? | Mar 29, 2024 |
Gurikusama wrote:
... I left France about six months ago and as an expat, I wonder how I should proceed.
I can keep that French status, but it charges me 21% of my income for services I won't use (social welfare, training programs, retirement fund...).
...
I prefer to sponsor the French social welfare system rather than a Panama law firm...
Before you go any further, I suggest you check out the state of play relating to this: https://www.mintrabajo.gov.co/prensa/comunicados/2019/septiembre/colombia-y-francia-inician-negociacion-para-suscribir-convenio-de-seguridad-social
As a British 'ex-pat' who's lived and worked in several countries in the past 45 years, and who's now happily retired in Chile with regular income in the form of three tax-free state pensions earned decades ago on the other side of the Atlantic, I've always found it most convenient - not only in financial terms but also, more importantly, in terms of 'administrative tranquility' - to fit in with whatever the administration of my 'host country' expects of me, while at the same time keeping an eye on developments such as social security conventions.
It's difficult enough keeping track of the ever-changing 'rules' set by one's own country, let alone two (or four, in my case) countries, and how those rule-sets interact, without unnecessarily dragging any other country's rules into your financial juggling act.
JL
| | | | AkagamiLLC
France
Local time: 13:32
English to French
+ ...
TOPIC STARTER
Thank you both!
@Steve:
So, my tax rate in Colombia would indeed be lower than 35%. :')
I know that France and Colombia have a tax agreement to avoid double taxation, so on that side, I should be fine.
Regarding operating as a sole trader, I know that in France, you need the auto-entrepreneur status for any independent work. In Colombia, I think a "RUT" is enough, I wouldn't need a company, but I don't think that would change anything tax-wise, I'll ask my lawyer.<... See more Thank you both!
@Steve:
So, my tax rate in Colombia would indeed be lower than 35%. :')
I know that France and Colombia have a tax agreement to avoid double taxation, so on that side, I should be fine.
Regarding operating as a sole trader, I know that in France, you need the auto-entrepreneur status for any independent work. In Colombia, I think a "RUT" is enough, I wouldn't need a company, but I don't think that would change anything tax-wise, I'll ask my lawyer.
@Jennifer:
I'm not sure how that social security agreement impacts me, I would think it doesn't. For now, I'm still unable to subscribe to the Colombian health system, my foreigner status somehow jams their system. -_- I guess I'll know more when that gets fixed.
What I know is that the French social security rejected the dental work I got done here because it was not deemed unexpected (when it actually was), so I can't just stick with this.
Cheers! ▲ Collapse
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