Should an IT consultant still stay in France with a turnover of €100,000?
- 3 days ago
- 10 min read
Summary
Introduction
Reaching €100,000 in annual revenue is a symbolic milestone for an independent IT consultant. It's the point at which the question of relocating abroad ceases to be a casual conversation and becomes a well-documented economic decision . Many developers, cloud architects, and cybersecurity experts cross this threshold only to discover that their net income is growing much more slowly than their billings.
The honest answer to the question posed by this title is neither yes nor no. It depends on the chosen legal structure, the actual level of expenses, the consultant's family situation, and their actual mobility . At this income level, a poorly planned departure can be more costly than remaining in France.
We recently analyzed the broader issue of where a high-earning IT consultant should be based . This article deliberately narrows the focus to a specific amount, because it is around this threshold that the most poorly calibrated decisions are made.
Coreway Consulting supports freelancers and executives across ten jurisdictions. Experience shows that at €100,000, the issue isn't about leaving France, but about verifying whether the current structure is truly suited to the trajectory of the next three years.
What €100,000 of revenue actually looks like in France
An IT consultant who invoices €100,000 excluding VAT obviously doesn't receive that amount. Between operating expenses, social security contributions, and taxes, the actual disposable income is frequently between 45% and 60% of revenue. The difference between these two extremes depends almost entirely on the company's structural choices.
In a sole proprietorship or a single-member limited liability company (EURL) subject to income tax, all profits are subject to social security contributions for the self-employed. The overall rate is around 40 to 45% of professional income , even before income tax. The mechanism is simple to understand but a significant burden at this level of revenue.
From revenue to net disposable income
The conversion of revenue into personal income involves three successive filters. The first is that of deductible expenses, often limited for a consultant working from home on a time and materials basis. The second filter is social security contributions, the third is tax-related, and it is the combination of these that produces the "scissors effect" felt above €90,000.
On a progressive tax scale, the 41% marginal tax bracket kicks in at around €84,000 of taxable income per share. A single person without children who pays themselves all of their profit therefore reaches this bracket before even exceeding €100,000 in revenue, making each additional euro significantly less profitable .
The burden of social security contributions
Contributions are not a tax and they confer rights, a fact that international comparisons systematically overlook. Retirement benefits, daily allowances, and health insurance have real value that must be factored into any serious comparative analysis . A thirty-year-old consultant and a fifty-five-year-old consultant do not place the same emphasis on this benefit.
This is precisely the point that distinguishes a marketing simulation from a wealth analysis. Comparing a foreign tax rate to an overall French rate without neutralizing the contributory portion amounts to a significant overestimation of the advertised gain .
The levers already available without leaving the territory
Before considering leaving, all domestic optimization strategies must be exhausted. Switching to a company subject to corporate tax completely changes the equation: profits are taxed at 15% up to €42,500 and then at 25% above that , and only the remuneration actually paid is subject to social security contributions.
A consultant who doesn't need all of their profit to live can thus capitalize within their business structure. The distributed dividends are then subject to a flat tax rate of 30%, which in some cases results in a lower overall tax burden than operating as a sole proprietorship .
Other options remain available without requiring geographical relocation: tax-deductible retirement savings plans, Madelin contracts, reassessment of taxable income, and balancing salary and dividends. These tools do not eliminate the tax burden but can recover several thousand euros per year for a limited implementation cost.
Our position on this point remains consistent. Until these domestic levers have been activated, relocating abroad is more of a stylistic exercise than an optimization, and it adds administrative complexity that is rarely justified at this level of income.
The threshold at which international arbitration becomes rational
There is no legal threshold, but there is an economic one. In practice, the tax difference begins to cover structural and mobility costs for a sole consultant with a turnover of €120,000 to €150,000 . Below this threshold, the net difference is often absorbed by fixed costs.
Why €100,000 is a grey area
At €100,000, the theoretical tax savings from a low-tax jurisdiction can amount to tens of thousands of euros on paper. However, the costs of setting up and maintaining the local company, the accountant, the actual residence, private health insurance, and travel expenses must be deducted. The net result is much more modest than advertised .
One exception deserves mention for this specific billing level. Certain schemes designed for small businesses, such as the Georgian sole proprietorship taxed at 1% of turnover (up to a ceiling), offer a particularly favorable cost-benefit ratio for businesses up to €150,000 . This is one of the rare cases where the trade-off becomes relevant even at €100,000.
The correct way to think is to project the trajectory, not the snapshot. A consultant aiming for €180,000 in eighteen months should prepare the structure before reaching that threshold , because a change of tax residence is built over several fiscal years, not just one quarter.
What an IT consultant really gains by changing jurisdictions
The gain is measured on three distinct levels: taxation of profits, taxation of distributions, and long-term wealth taxation. A consultant who spends all of their income does not pursue the same objective as a consultant who is building capital for an exit strategy .
Four jurisdictional logics to distinguish
The United Arab Emirates applies a 9% corporate tax on profits exceeding a certain threshold and does not tax personal income. For a fully remote technical professional, tax relocation to Dubai remains the benchmark in terms of apparent simplicity, provided a physical presence is established there.
Cyprus combines a 12.5% corporate tax rate with a non-domiciled status that permanently exempts dividends and interest from defense contributions. Tax relocation to Cyprus is attractive to consultants who want to remain within the European Union and maintain the freedom to provide services.
Malta operates on a tax refund mechanism that reduces the effective tax burden for non-resident shareholders to a very low level, while Mauritius combines a nominal rate of 15% with partial exemptions depending on the nature of the income. Both options require demonstrably sound local governance to withstand audits.
The fixed costs of a foreign structure
Incorporation, legal secretarial services, local accounting, auditing in certain states, bank account, visa, and accommodation form a core set of unavoidable annual expenses. This core set is largely independent of the billing level , which mechanically explains why the break-even point is higher than one might expect.
Therefore , relocating to Malta or establishing a business in Mauritius is never simply a matter of a stated tax rate. It is assessed based on the net profit available after all operating costs have been deducted, over several consecutive fiscal years.
Exit and structural costs are often underestimated.
Leaving France triggers mechanisms that many consultants discover too late. The exit tax targets unrealized capital gains on securities when the relevant securities assets exceed €800,000 or represent more than half of a company's profits, a threshold rarely reached at this income level but worth verifying.
More frequently, the question arises of liquidating or putting the French entity into dormancy. Distributing the cash accumulated before departure, retaining it, or transferring it produces three very different tax outcomes, and the timing of the operations determines the final cost .
The issue of oversight also arises. The French authorities have access to information transmitted through the automatic exchange of information and the reporting obligations of intermediary platforms. A consultant who leaves France on paper while maintaining their center of vital interests there risks reclassification, with penalties and late payment interest.
Retaining French customers from abroad
The question arises in almost every IT consultant's case. There's nothing preventing a foreign company from invoicing French clients, provided the service is actually performed in the country of establishment . The difficulty isn't legal, it's evidentiary.
The main risk concerns the permanent establishment. If the consultant continues to work physically on-site several days a week at a client's Paris location, the tax authorities may consider that a taxable activity persists in France , regardless of the declared registered office.
For value-added tax (VAT) purposes, services between taxable persons are subject to the location of the recipient. A company established outside the European Union therefore invoices outside the scope of VAT, while an intra-Community company applies the reverse charge mechanism. This point is technically simple but frequently misapplied in the first few months.
Intermediation platforms add a layer that should not be overlooked. They transmit the revenue paid to their users to the tax authorities and sometimes impose contractual constraints on the country of invoicing, which can limit certain configurations that are otherwise valid from a tax perspective.
Situations where staying in France remains the best decision
A consultant whose spouse works in France and whose children attend school locally cannot credibly transfer their tax residence. Permanent residence takes precedence in most tax treaties, and no amount of technical maneuvering can compensate for the lack of actual mobility .
Profiles for which the calculation is not justified
The consultant who works primarily in person, the one planning a short-term mortgage refinance, the one aiming for a business transfer within three years, or even the one who spends their entire income on work, all have good reasons to stay. In these cases, their energy is better invested in optimizing their home life than in an expatriation project.
Finally, there is a non-financial factor that comparative tables ignore. Living eight months a year in a country chosen for its tax rate and not for its quality of life results in a high dropout rate after two years , with a significant return cost.
Decision grid for an IT consultant at €100,000
Five questions can quickly help you decide. Is your business 100% executable remotely, without recurring physical presence at your clients' premises? Can your household realistically travel with you for at least two full fiscal years?
Third question: Does your revenue trajectory project you to exceed €150,000 within eighteen months? Fourth: Do you reinvest a significant portion of your profit, or do you spend it all? Fifth: Have you already explored all available French options before considering leaving?
Three out of five positive responses warrant further investigation. Five positive responses make the project truly viable, even at this billing level. Fewer than three, and remaining in France is still the rational decision in the short term.
For companies with an Asian focus, tax relocation to Singapore follows a different logic, geared more towards regional clients than pure tax optimization. The alignment between the target market and the chosen jurisdiction remains the primary criterion for the structure's robustness.
Comparative table of the jurisdictions studied
Jurisdiction | Corporate tax | Personal taxation | Relevance at €100,000 in revenue |
France | 15% then 25% | Progressive scale up to 45% | Comparison reference |
United Arab Emirates | 9% above the threshold | None on income | Good, if real mobility is present |
Cyprus | 12.5% | Non-domiciled status | Good, preserved European framework |
Malta | 35% with cashback | Repatriation base | Average, structural costs |
MAURITIUS | 15% with exemptions | 15% capped | Average to good |
Georgia | 1% of turnover under the ceiling | Simplified regime | Very good at this level |
Andorra | 10% | 10% maximum | Good, close to Europe |
Portugal | 21% | Targeted incentive scheme | Variable depending on eligibility |
These rates are the statutory rates published by each jurisdiction and are subject to change. They do not in any way prejudge the net result of an individual arrangement , which depends on the chosen structure, the nature of the income, and the applicable tax treaty.
Anonymized feedback
A thirty-four-year-old DevOps consultant consulted us with €104,000 in revenue, 90% of which was generated from three major French accounts, working entirely remotely. His initial objective was clear: to move to the Emirates within six months to immediately reduce his tax burden .
The analysis showed that the net gain after structural and living costs was around €11,000 in the first year, once the value of lost social benefits was neutralized. This amount alone did not justify a complete relocation and a change of lifestyle .
We proposed a two-stage strategy. The first year involved switching to corporate tax, reinvesting a portion of the profit, setting up a retirement savings plan, and gradually transferring the portfolio to European clients. This stage generated nearly €8,000 without any asset swaps .
The relocation was initiated eighteen months later, with €168,000 in billings, a solid business case, and a client base that stood up to scrutiny. The consultant himself acknowledged that the delay had significantly reduced his risk while increasing the final profit.
Frequently Asked Questions
Is it possible to transfer one's tax residence while keeping a French company?
Yes, but the two plans must be handled separately. Maintaining a French company while residing abroad creates tax liability on profits in France and complicates the case. Holding the company through a holding company or liquidation are the two options usually considered.
Is the 183-day rule sufficient to establish a new residence?
No, and that's the most common mistake. French law also considers permanent residence, principal residence, center of economic interests, and place of professional activity. Tax residence is determined by a range of factors, not simply by counting the number of days.
Is a consultant earning €100,000 subject to the exit tax?
Rarely, because the scheme targets shareholdings valued at over €800,000 or representing more than 50% of company profits. However, a consultant who has accumulated cash reserves in their company over several years can approach this threshold more quickly than they might expect.
Do freelance platforms accept foreign invoicing?
It depends on the platform and the country. Some require a physical establishment within the European Economic Area, while others accept any duly registered entity. This point must be verified before any structural commitment , as it can invalidate an entire scenario.
How long does it take to prepare for a departure properly?
Between six and eighteen months, depending on the jurisdiction and the complexity of the assets. Cases prepared in less than three months almost always have weaknesses in their economic substance that become apparent during a subsequent audit.
Is it possible to return to France after a few years?
Yes, and it must be considered from the project's inception. Certain mechanisms, such as exit tax relief after a holding period, require advance planning . An impromptu return can negate some of the accumulated benefits.
You bill around €100,000 as an IT consultant and you're wondering if France is still the right base. You can request a personalized study from Coreway Consulting to compare your current situation with the ten jurisdictions we support.
