Who this is for: This guide is for foreign nationals, including US citizens, who want to work for themselves in France and are considering the micro-entreprise regime. It covers eligibility, the 2026 ceilings, VAT, social charges and one important US tax point.
The micro-entreprise (still widely called auto-entrepreneur) is the simplest way to run a small independent activity in France. Social charges and tax are calculated as a flat percentage of turnover, accounting is minimal, and you can register online. It is popular for consultants, freelancers and small traders, and it is open to foreigners, subject to the right to work and reside in France.
Can a foreigner use it?
Yes, provided you are legally entitled to carry on a self-employed activity in France. In practice:
- EU, EEA and Swiss nationals can register freely, on the same basis as French nationals.
- Non-EU nationals need a residence permit that authorises self-employment. Not every permit allows it, so the right immigration status must be in place first.
- You will need a French address, and depending on the applicable rules you may also need a dedicated bank account for the activity (for example, once turnover passes a certain threshold).
The turnover ceilings
The micro regime has annual turnover ceilings, and they were revalued for 2026. The ceilings are now €203,100 for sales of goods and accommodation and €83,600 for services and liberal professions, up from €188,700 and €77,700 for the 2023 to 2025 period. They are revised every three years, so these figures apply to 2026 onward rather than to earlier years. Exceed a ceiling in two consecutive calendar years and you leave the micro regime for standard (réel) taxation from 1 January of the year that follows.
Two ceilings, two different consequences
Line to watch | Goods and accommodation | Services and liberal | What happens if you cross it |
Micro regime ceiling (2026) | €203,100 | €83,600 | Leave the micro regime after two consecutive years over |
VAT franchise threshold (2026) | €85,000 | €37,500 | Start charging French VAT, while staying in the micro regime |
These are independent of each other, which is the single most common misunderstanding about the regime. A consultant billing €60,000 is comfortably inside the micro ceiling of €83,600 and comfortably over the VAT threshold of €37,500 at the same time. The French government sets out what happens on crossing a ceiling in its guidance on exceeding the micro-entreprise turnover threshold, and URSSAF publishes the revalued 2026 thresholds.
VAT: the threshold that trips people up
A micro-entrepreneur is not automatically outside VAT. There is a separate VAT franchise (franchise en base) with its own, lower thresholds. A widely discussed plan to cut these to a single €25,000 threshold was suspended and then definitively dropped by the law of 3 November 2025. A later proposal to set a single €37,500 threshold was also rejected in parliament. The thresholds for 2026 therefore remain €37,500 (services) and €85,000 (sales), with higher tolerance thresholds above them. The key point: you can stay within the micro regime yet cross the VAT threshold, at which point you must start charging French VAT. Treat the micro ceiling and the VAT threshold as two separate lines to watch.
Social charges, tax and CFE
Social contributions are paid to URSSAF as a percentage of turnover, declared monthly or quarterly. Income tax can be handled through the normal progressive system or, if you qualify, the optional flat-rate versement libératoire. Remember too that the CFE local business tax applies from the year after creation, even for a micro-entrepreneur working from home.
A note for US persons
If you are a US citizen or green card holder, micro-entreprise profit is self-employment income for US purposes. That can attract US self-employment tax unless you are covered by the France-US totalization agreement and hold a certificate of coverage, and the income is earned income for the FEIE and Foreign Tax Credit. In other words, a French micro-entreprise has a US tax dimension that should be planned alongside the French one.
How Expand CPA can help
Expand CPA is a Franco-American accounting and tax advisory firm with offices in Paris, New York and Tel Aviv. We help foreign nationals set up a micro-entreprise correctly, confirm the immigration and VAT position, and, for US persons, coordinate the French regime with US self-employment tax and the totalization agreement so you are not taxed twice. If you are weighing the micro-entreprise against a company, we can compare both for your situation. See also our guides to creating a subsidiary in France and work visas for France, or get in touch.
Disclaimer: Micro-entreprise ceilings, VAT thresholds and social charge rates change over time and eligibility depends on your immigration status. This article is general information only, not tax or legal advice. Please consult a qualified adviser.
Frequently Asked Questions
Can a non-EU national open a micro-entreprise?
Only with a residence permit that authorises self-employment. Not every permit allows it, so the right status must be in place first.
Was the €25,000 VAT threshold introduced?
No, it was abandoned. For 2026 the VAT franchise thresholds remain broadly €37,500 for services and €85,000 for sales.
Do US citizens face US tax on micro-entreprise income?
It is self-employment income for the US and can attract US self-employment tax unless the France-US totalization agreement covers you.
