Teleworking exploded after the COVID-19 pandemic. A new generation of nomadic workers has emerged. But as advantageous as it is, teleworking will inevitably lead you to think about vital questions: taxation, social security, retirement, status... In short, these are subjects that are still unclear to you, and you are in luck because we are going to explain them!
Teleworking: the questions you need to ask yourself
To be able to approach the subject, you must ask yourself certain crucial questions as a teleworker. Of course, we will come back with more details on some of them.
What social security regime would you be subject to?
A nomadic worker may be required to work abroad. He can only benefit from the social security of the host country when part of its activity is carried out in the country in question (25 %). On the other hand, if you carry out this activity in a country of the European Union, you can choose to benefit from French Social Security.
What about income tax?
Your tax returns depend on the duration of your teleworking abroad. It is possible that a teleworker pays this tax in the country of residence, knowing that this will have an impact on their income and on withholding tax.
What is your employer's liability in the event of an accident?
If an accident occurs during your teleworking, the employer must declare it. This is also required to ensure your safety and health.
What are the possible statuses for a nomadic worker?
Digital nomads can work under several statuses.
Microbusiness
This is an individual business that you will manage. Setting up such a company is simple. This status offers certain advantages, such as reduced social charges (22 % of turnover). Remember that the latter is capped at 72,600 euros per year.
Single-member simplified joint stock company (SASU)
The status of a SASU is in high demand among teleworkers. Here you can start with any social capital: no minimum is required. However, the procedures for launching such a business are expensive and rather complex.
A One-Person Limited Liability Company (EURL)
This solution gives you the status of a manager and a sole partner. Your personal assets are protected from creditors. In addition, you will benefit from simple legal operation. However, you do not have access to unemployment insurance.
When are you considered workers working abroad?
According to the Ministry of the Economy, Finance and Industrial and Digital Sovereignty, you are considered a worker working abroad in the following cases:
- Working outside mainland France, the Littoral Islands and Corsica
- Working outside the Overseas Departments
When can your tax domicile remain in France?
According to the same institution, your tax domicile remains in France when your home remains in France, despite the obligations of staying in countries abroad for your work.
You also remain taxable in France when you own your economic interests in France. Note, also, that even if your tax domicile is not in France, you remain subject to French taxes, if you receive income from a French source.
What social protection for teleworkers?
Within the European Union, affiliation with the Social Security of the host country where you telework becomes compulsory if the duration of your professional activity within this country extends. This involves registration with the specialized organizations of the country concerned, whether for you as a nomadic worker or for your employer.
An analysis of the situation is necessary
You must then carry out an in-depth analysis of the tax and social security obligations of your new place of residence. In this way, you will be able to limit the repercussions of a possible subsequent recovery by the competent authorities of the host country.
What to do if your tax domicile is outside France?
If, for professional reasons, your tax domicile has been transferred abroad, you must inform the Public Finance Center on which you depend in the host country. To do this, simply access your particular space on the site impots.gouv.fr.
Do not forget to inform your employer of this change in situation. In fact, the taxation methods will change. Then, during the year following your departure abroad, you must declare your income via the impots.gouv.fr website.
Teleworking: what about your retirement?
Your retirement depends your legal status. Do not hesitate to return to the section presented a little above on these statuses. For example, if you have a micro-enterprise, you are considered a self-employed worker. Also, you will benefit from social security for the self-employed (SSI).
Validation of quarters
For freelancers, you are required to validate your quarters to receive your retirement. You must also contribute to a basic or supplementary pension plan.
The first depends on your salary and the number of quarters validated. The second, for its part, is based on a points system. Therefore, the validation of 167 to 172 quarters is required for you to retire at age 62 – depending on your year of birth.
The solution from our trusted partner
Since the Covid-19 epidemic crisis, France has generalized the practice of teleworking. In a context of shortage of French labor in many sectors of activity, companies are more frequently turning abroad to recruit their new employees by offering them the possibility of teleworking. It is also not uncommon to see foreign companies post one or more employees to France on a “full remote” basis (full-time teleworking) in order to develop their activities in Europe. It is then appropriate to ask several questions: what is the law applicable to the employment contract? How to secure the practice of teleworking in France (full-time teleworking, at home or in a coworking space, compensation to be paid, control of working hours)? What social security regime will be applicable to foreign workers who telework only part of the year in France? Is membership to the CNFE obligatory?
Department lawyers Mobility of the office Majorelle Lawyers, located in Paris and Nantes, support in French and English, all types of companies, French and foreign, which use foreign labor in France in a teleworking situation, particularly in their procedures for obtaining adequate residence permits and work permits.
In order to save time and allow them to welcome their foreign talents with complete legal security, they take care of professional immigration formalities and provide their expertise in labor law and social security.