Starting a business in France can be amazing, but taxes can vary depending on the type of business you choose. Some businesses naturally have lower tax burdens, especially when operated under the Micro-Entrepreneur (Auto-Entrepreneur) status, which offers simplified tax rates. Here’s a guide to 12 of the least tax-paying businesses in France.

1. Freelancing (Micro-Entrepreneur)

Freelancers in France benefit from the Micro-Entrepreneur status, paying a flat tax rate on their revenue. This system is ideal for those starting out or offering services with low overhead.

• Tax rate: 22% on services.
• Examples: Graphic design, content writing, web development.

2. Online Retail (E-commerce)

Running an online store allows you to qualify for a reduced tax rate under the Micro-Entrepreneur system. With low operating costs and no need for physical space, it’s a popular choice.

• Tax rate: 12.8% on sales (goods).
• Examples: Selling fashion, gadgets, or home décor online.

3. Drop-shipping Business

In drop-shipping, you sell products without holding stock, and under the Micro-Entrepreneur status, you’re taxed on your sales revenue. It’s a low-cost, low-tax business model.

• Tax rate: 12.8% on revenue.
• Examples: Selling beauty products, gadgets, or fitness equipment through a drop-shipping model.

4. Property Rental (Furnished Apartments)

Furnished rentals fall under the Micro-BIC system, where you can benefit from a tax deduction of up to 50% of your revenue, making it a tax-efficient way to earn from property.

• Tax rate: Up to 50% reduction under Micro-BIC.
• Examples: Renting a vacation home or furnished apartment.

5. Artisan Crafts

Handmade craft businesses enjoy a reduced tax rate under the Micro-Entrepreneur status. Because these businesses often have low material costs, they are a great option for those seeking to minimize taxes.

• Tax rate: 12.8% on sales.
• Examples: Jewelry making, pottery, soap making.

6. Tutoring or Private Lessons

Offering private lessons, whether in academics or skills like music, allows you to register as a Micro-Entrepreneur and keep your tax rates low. It’s a great option for teachers and tutors.

• Tax rate: 22% on income.
• Examples: English tutoring, math lessons, music classes.

7. Photography Business

Photographers working as freelancers or small business owners can benefit from the Micro-Entrepreneur system. Since photography services have low overhead costs, you can keep taxes low.

• Tax rate: 22% on income.
• Examples: Event photography, portrait photography.

8. Consulting Services

Small consulting businesses that provide expert advice can operate under the Micro-Entrepreneur system, keeping taxes low while delivering high-value services.

• Tax rate: 22% on income.
• Examples: Business consulting, marketing consulting, financial advice.

9. Translation Services

If you are bilingual or multilingual, offering translation services is a low-cost business that benefits from the flat-rate tax system. You can work from home with minimal equipment.

• Tax rate: 22% on income.
• Examples: Document translation, website localization.

10. Social Media Management

Providing social media management for small businesses or influencers can qualify you for the Micro-Entrepreneur system. Since this job only requires a laptop and an internet connection, it’s a tax-friendly option.

• Tax rate: 22% on income.
• Examples: Social media strategy, content creation, community management.

11. Virtual Assistant Services

As a virtual assistant, you can support businesses or entrepreneurs remotely, making it a low-overhead and low-tax business. The Micro-Entrepreneur status allows you to pay taxes only on your income.

• Tax rate: 22% on income.
• Examples: Administrative tasks, email management, scheduling.

12. Pet Sitting or Dog Walking

If you love animals, pet sitting or dog walking can be a simple and tax-efficient business in France. You can qualify for Micro-Entrepreneur status and enjoy low taxes while working with furry friends.

• Tax rate: 22% on income.
• Examples: Dog walking, pet sitting, grooming services.

Conclusion

In France, the Micro-Entrepreneur system is a popular and tax-friendly way to run a business, especially for small entrepreneurs or freelancers. Whether you’re offering a service like consulting or teaching, or selling products online, choosing the right business type can help you keep your taxes low and operations simple. If you are starting out, consider one of these least tax-paying businesses for a smoother financial journey.