Client's Question: “I’d like to start a small gardening business when I move to France, just to top up my income, but I’ve heard that it’s really costly and complicated. What advice can you give me?"

It is true that setting up a small business in any country can be a bit daunting, but even more so if you don’t speak the language or understand the system. Fortunately the process has been made more accessible and simpler, with the introduction in January 2009 of the Auto-entrepreneur regime.

You could make it even easier by talking to Premier Property Care about starting up a new franchised region in their network, working with clients and looking after their holiday homes and gardens.

Prior to this a small business was charged a maximum fixed percentage of their turnover in social charges. This meant that a small business would have faced high social charges, with a yearly increase for the first three years, regardless of whether any income had actually been made, making it much more difficult to get a new business off the ground, and virtually excluding people like yourself who just wanted a little extra money. Instead under the auto-entrepreneur system you will pay a percentage of actual turnover in social charges and French income tax; in other words if you earn nothing there will be nothing to pay (apart from some small essential charges). In addition you will be exempt from income tax for the first 3 years.

Further details on the auto-entrepreneur system can be found on the following site: www.auto-entrepreneur.fr.

The regime is available to a large variety of activities including providers of services, including those that are commercial in nature, such as sales, bar/restaurant and accommodation owners. It also applies to liberal professionals, including health professionals, legal professionals, surveyors, journalists, accountants, the retired, students and entrepreneurs.

If your business activity is service-based should expect to pay 23% of their annual turnover, whilst those selling goods 13%. There is no VAT registration to worry about, but there is a limit on turnover under this regime of €80,000 for commercial businesses and €32,000 for service professionals.

This regime will be ideal for the self-employed, including British expats or retirees like yourself looking to make a little extra income from home.

Blog submitted by: Sharon at Cle France.

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