The 5 destinations to consider before moving abroad as an independent IT consultant.
Summary
Introduction
An independent IT consultant considering leaving France almost always starts with the wrong question. They look for the country with the lowest taxes, when the real issue lies in the compatibility between a jurisdiction and a business model . Between a fully remote developer billing European clients and a cloud architect regularly working on-site for major French companies, the relevant destinations only partially overlap.
In a previous analysis, we examined the case of high-income freelancers considering Dubai from Malta . This article deliberately broadens the scope. Rather than one obvious destination, five jurisdictions deserve serious consideration before making a decision, each catering to a different consultant profile.
The five destinations selected here are the United Arab Emirates, Portugal, Andorra, Georgia, and Mauritius. This choice is not based on ranking but on field observations: these are the jurisdictions most frequently chosen by independent technical professionals, and none of them is suitable for every profile . Four other jurisdictions, often dismissed too quickly, will also be discussed.
Before going into detail, a reminder of the methodology is necessary. Changing countries is not enough to change tax residence : the French tax authorities assess the situation with regard to the permanent home, the principal place of residence, the center of economic interests, and the main professional activity. The 183-day rule is only one criterion among others , and rarely the most decisive one in the event of an audit.
Why the destination matters as much as the decision to leave
Many IT consultants approach expatriation as a simple arithmetic problem: compare a French tax rate to a foreign one, measure the difference, and decide. This approach regularly leads to unsuitable choices because it ignores the friction costs specific to each jurisdiction . A country with zero taxation but no tax treaty with France may prove less advantageous than a country with a 10% tax rate and a robust treaty network.
For a technical consulting business, four factors are more important than the stated tax rate. The first is the ability to retain a French client base without establishing a permanent establishment in France. The second relates to the recognition of the local structure by clients and intermediary platforms, which apply their own compliance rules.
The third parameter concerns the economic substance required locally: office space, actual residence, minimum physical presence, sometimes salaried employment. The fourth, often overlooked, relates to the reversibility of the arrangement . A consultant who plans to return to France in three to five years has no interest in building the same structure as a freelancer permanently established abroad.
Destination 1: The United Arab Emirates
The UAE remains the most frequently cited jurisdiction for IT consultants, and this reputation is well-deserved. The absence of personal income tax is a structural advantage, complemented since 2023 by a corporate tax rate of 9% on profits exceeding AED 375,000 , and therefore zero below this threshold. The local value-added tax is 5%.
What actually works for a technical profile
This arrangement is particularly well-suited to consultants with international clients or whose assignments are conducted entirely remotely. Free trade zones offer a clear framework for a sole proprietorship, and the tax treaty between France and the UAE eliminates double taxation in most situations. The residence visa associated with the company facilitates obtaining proof of registered address.
The main point of concern
For several years now, the Emirates have been applying rules based on economic substance that go beyond simply having an address. A consultant who maintains their family home in France, spends the majority of their time there, and invoices most of their work from there risks having their tax residency reclassified . Furthermore, the high cost of living in Dubai, particularly housing, significantly reduces the tax benefits for incomes around €100,000.
Destination 2: Portugal
Portugal has long been the European gateway for self-employed French workers, thanks to its non-habitual resident (NHR) scheme. This long-standing scheme has been closed to newcomers and replaced by a system targeting certain skilled activities, including several technology-related professions. The flat rate of 20% applicable to eligible business income remains attractive compared to Portugal's progressive tax scale, which can reach over 45%.
A European framework that simplifies customer relations
For an IT consultant billing French or European companies, membership in the European Union eliminates a number of potential hurdles. Intra-Community VAT is applied according to mechanisms familiar to clients' accounting departments, and no customs formalities complicate the invoicing of intangible services. This administrative simplicity of transferring residency to Portugal explains part of its appeal to professionals who are reluctant to disrupt their existing business relationships.
The Portuguese corporate tax rate is 21%, plus local taxes depending on the municipality. This level is not exceptional, but the country compensates with a high quality of life and convenient travel time, which are important for a freelancer working with French clients. A two- to three-hour flight is all it takes for an on-site steering committee meeting.
Destination 3: Andorra
Andorra occupies a unique position: less than two hours from Toulouse, the principality applies a corporate tax of 10%, an income tax capped at 10%, and a consumption tax of 4.5%. These levels are among the lowest in Western Europe, without the drawbacks of a remote jurisdiction or one poorly understood by trading partners.
The tax treaty concluded with France, in force since 2016, has significantly improved tax security. It establishes the allocation of taxing rights and eliminates the hasty classifications to which the principality was previously subjected. A transfer of tax residence to Andorra is now analyzed using the same legal framework as a move to a Member State of the European Union.
The trade-off lies in the requirement of actual residency, rigorously monitored by local authorities: a minimum presence in the territory, available accommodation, and work genuinely carried out from the principality. Andorra is therefore suitable for consultants prepared to truly establish their daily lives there , and much less so for those seeking a convenient address.
Destination 4: Georgia
Georgia remains the least known destination in this selection, even though it corresponds to a very specific profile of IT consultant: one who begins their expatriation with a turnover between €80,000 and €200,000. The status of sole proprietor allows, under certain conditions and within a turnover limit, a 1% tax rate on gross business income .
The corporate tax regime is based on a model inspired by the Estonian system: the 15% tax is only payable upon distribution of profits. A consultant who reinvests their cash flow in their business can therefore defer taxation for several fiscal years , which is particularly advantageous for product development or hiring projects.
A tax treaty exists between France and Georgia, and the country applies broad territorial jurisdiction to foreign-source income of individuals. However , transferring tax residence to Georgia implies accepting a more restrictive banking environment than in the European Union, as well as a regional geopolitical context that any applicant must consider.
Destination 5: Mauritius
Mauritius represents the Francophone compromise in this selection. The country applies a 15% corporate tax, reduced in certain export-oriented business models, and a progressive personal income tax system with rates that remain significantly lower than the French scale. The absence of capital gains tax on securities is an advantage for consultants holding shares .
The working language, the French-inspired legal system, and the presence of an expatriate business community reduce the administrative learning curve. A long-standing tax treaty between Mauritius and France, regularly updated, provides a stable framework for invoicing European clients from the Indian Ocean.
The two- to three-hour time difference with France remains manageable for consulting assignments, but it penalizes consultants whose work requires a synchronous presence in the morning. Mauritius also demands credible local expertise, and the authorities have tightened their requirements since the BEPS project conducted at the international level.
The jurisdictions dismissed too quickly
Four other destinations are mentioned in discussions without being thoroughly examined. Cyprus applies a corporate tax rate of 12.5% and a non-domiciled resident regime that exempts dividends and interest from the special defense contribution for seventeen years. Its intellectual property regime is of particular interest to consultants who develop their own software tools.
Malta, Panama and the Bahamas: very different approaches
Malta operates on a credit mechanism: the 35% corporate tax rate is partially refunded to shareholders, significantly reducing the actual tax burden. This system requires above-average administrative rigor and ongoing local support, which discourages some self-employed individuals.
Panama applies strict territoriality: foreign-sourced income is exempt from local taxation. This system appeals to consultants whose entire client base is outside the country, but transferring tax residence to Panama requires very precise documentation of the income's origin, otherwise the French tax authorities may challenge the legitimacy of the arrangement.
The special case of the Bahamas
The Bahamas levies no income tax, corporate tax, or capital gains tax. This complete tax neutrality, however, comes at the cost of a tax treaty with France, depriving taxpayers of the usual double taxation avoidance mechanisms. Therefore , transferring tax residence to the Bahamas is generally only advisable for individuals with substantial wealth, and rarely for an IT consultant at the beginning of their career.
How to compare these five destinations without making a mistake
The comparison is not based on the nominal rate but on the overall burden borne by the household, once the cost of living, local social security contributions, health insurance, and overhead costs are factored in. A consultant billing €120,000 and an executive billing €400,000 do not receive the same ranking because fixed overhead costs weigh proportionally more heavily on middle incomes.
Three essential preliminary checks
The first step involves measuring exposure to the exit tax : this mechanism targets holders of shares whose value exceeds €800,000, or which represent more than 50% of a company's profits. A consultant working directly, without a holding company, is generally not affected, but someone who has accumulated shares for ten years must quantify this exposure before leaving the company .
The second check concerns Article 123 bis of the French General Tax Code, which allows for the taxation in France of the income of a foreign entity subject to a preferential tax regime when the taxpayer owns a significant portion of it. The third concerns the concept of a permanent establishment : a consultant who maintains an office, an employee, or a regular commercial presence in France creates a connection that a change of residence alone cannot sever.
In addition to these checks, there is also banking transparency. The automatic exchange of financial information established by the Common Reporting Standard means that the French tax authorities receive data on accounts held in almost all of the jurisdictions mentioned. Building a robust system therefore requires a focus on deliberate compliance rather than discretion .
Comparative table of the five destinations
The table below summarizes the main public legal parameters of each jurisdiction. It serves as a starting point for reflection and does not replace an individualized analysis of your situation .
Jurisdiction | Corporate tax | Personal taxation | Convention with France | Suitable IT consultant profile |
United Arab Emirates | 9% above the threshold | No income tax | Yes | International clients, fully remote |
Portugal | 21% plus local contributions | 20% if eligible plan | Yes | European clients, close proximity to France |
Andorra | 10% | 10% maximum | Yes | Durable and effective installation |
Georgia | 15% to distribution | 1% subject to conditions | Yes | Revenues in the upswing phase |
MAURITIUS | 15%, reduced for export | Progressive, moderate rates | Yes | French-speaking profile, holding of securities |
Testimonial from an independent cloud consultant
A 42-year-old independent cloud architect, with an annual turnover of approximately €190,000, contacted us after nearly signing a contract with a company in a UAE free zone. His reasoning was based solely on the difference in exchange rates, without considering that 80% of his projects remained in France and required several weeks of on-site presence each quarter.
An examination of his situation revealed that Emirati residency would have been vulnerable to scrutiny, as his home and travel patterns strongly tied him to France. After comparing his options, he opted for a European jurisdiction compatible with his travels , accepting a smaller tax advantage but offering significantly greater legal security. He also spread the transition over two fiscal years to ensure continuity with his existing clientele.
Frequently Asked Questions
At what revenue level does expatriation become relevant?
There is no universal threshold, but experience shows that structural and support costs become proportionally manageable with annual revenues of €100,000 to €120,000 . Below this threshold, net profit is often absorbed by fixed costs and the local cost of living.
Can I keep my French clients after I leave?
Yes, provided that the company does not maintain a fixed place of business in France or have a representative authorized to conclude contracts. Invoicing French clients from a foreign company is perfectly legal as long as the service is actually performed from abroad .
Does the Portuguese system for new arrivals still exist?
The historical non-habitual resident scheme has been closed to new applications. A replacement scheme, targeted at certain skilled activities including several technology-related professions, has taken over, with a flat rate of 20% on eligible earned income. Eligibility is assessed on a case-by-case basis.
How many days do I need to spend outside of France?
The 183-day rule is necessary but insufficient. The tax authorities also consider the permanent residence, the center of economic interests, and the location of the principal professional activity. A consultant can remain a French tax resident despite a prolonged absence if their family and interests remain in France.
Are these destinations considered tax havens?
None of the five destinations examined here are on the French list of non-cooperative states and territories. All have a tax treaty with France and participate in the automatic exchange of information, which places them within a framework of deliberate international cooperation .
Should I create a company or can I remain a sole proprietor?
Both options exist depending on the jurisdiction and income level. Sole proprietorship simplifies management at moderate revenue levels, while a company structure becomes relevant when the consultant wishes to raise capital, hire staff, or manage dividend distribution .
Conclusion
These five destinations are not ranked in absolute terms. They are ranked according to a specific profile: the nature of the clientele, the billable volume, travel capacity, family situation, and the potential return timeframe. An independent IT consultant who compares only rates risks choosing the most visible destination rather than the most suitable one.
The proper approach involves examining the five options in parallel, calculating the overall cost for each, and then verifying the legal soundness of the chosen mechanism in the face of an audit. This comparative analysis both protects and optimizes the decision .
You are an independent IT consultant and you want to objectively compare these destinations for your situation. You can request a personalized study from Coreway Consulting and examine with us the ten jurisdictions we support.
