Tax Minimization in France

The French taxation system provides for many tax advantages for companies and individuals residing in this country. However, actual trends indicate many of the French companies make use of legal strategies which help them reduce the taxes they pay. These strategies are known as tax minimization solutions. Tax minimization in France refers to using all the accounting and legal means to reduce the taxes paid by an individual or by a company.

Our French company formation agents can put you in contact with our partners who can offer personalized accounting services.

What tax minimization solutions can one employ in France?

Foreign investors opening companies in France are keen in knowing the best way they can reduce the taxes they pay. As foreign shareholders in a company registered in an EU country, they can take advantage of many deductions and exemptions provided by EU directives which provides for numerous tax exemptions or deductions.

When considering tax minimization strategies, it is good to know that as a French tax resident, one can obtain substantial benefits, as the authorities offer numerous tax deductions. Recently, the Government approved a new property tax scheme which provides for lower tax rates for property owners in France, whether purchased for residential or business purposes.

Tax minimization strategies for companies in France

Entrepreneurs with companies in France can enable various tax minimization strategies which will help them deduct the expenses incurred with their business. They can also make use of all the tax exemptions related to industry investments which will grant them tax allowances or reductions.

One of the most employed and worldwide recognized tax minimization solution is using the double tax conventions a country has. France has signed agreements for the avoidance of double taxation with a great number of countries. These treaties provide for reduces dividend and interest tax rates, for tax exemptions on certain expenses and for a special status for companies operating through branch offices or associated enterprises in these countries.

Our accountants in France offer you a series of services for the company you own. You will need payroll, bookkeeping, audits, different financial reports, support for tax registration, tax minimization methods, etc. We can also offer human resources administration services if you are also interested in this aspect. We will make sure that you comply with the law and that you make the correct financial statements.

For more information on how to use the French tax system in a favorable manner, please contact our local agents. We can also assist if you want to open a company in France.