Hiring a foreign employee: residence permit and employer tax
Before hiring a foreign national already residing in France, the employer must verify that their residence permit is valid and authorizes them to take up their new position. Depending on the candidate’s profile, specific procedures and the payment of an employer tax may apply.
In a nutshell
- Before hiring, the employer must verify that the foreign candidate already residing in France has a valid residence permit, check their right to work and the authenticity of the residence permit.
- Not all residence permits authorize the exercise of paid employment, or only under certain conditions.
- In some situations, a change of status is necessary before the start of the employment contract.
- Upon first admission to residency as an employee, an employer tax may be payable.
Does the residence permit allow for paid employment?
Before hiring any foreign candidate already present in France, the employer must ensure that the residence permit presented is valid and that it explicitly authorizes the exercise of salaried activity corresponding to the position offered.
The employer must verify the working conditions attached to the residence permit, in particular with regard to the type of contract, remuneration, qualification, or sector of activity.
What work permit is required depending on the residence permit?
Not all residence permits authorize the same activities in France. Some allow all salaried work, others only permit secondary activities, or remain limited to a specific professional situation.
| Category | Residence permits | Terms |
|---|---|---|
| Authorisation for any activity, whether salaried or non-salaried | Private and family life, permanent resident, family member of a European citizen, talent family, etc. | No specific restrictions, except for regulated professions. |
| Authorisation for any salaried activity, subject to conditions | Talent – European Blue Card, skilled employee, employee of an innovative company | Compliance with the eligibility criteria for the permit. |
| Authorisation to work on an ancillary basis only* | Student, temporary residence permit (APS), job-seeking/business creation permit (RECE) | Change of status required for a main salaried job. |
| Authorisation linked to a work permit | Employee, temporary worker, multi-year employee permit | New authorisation required for each contract. |
| Commercial activity permit only | Entrepreneur / freelance professional, Talent – business creator, company representative | Change of status required at the prefecture. |
Change in status
When the residence permit does not allow the exercise of the intended employment, the foreign national must initiate an application for a change of status, in principle between 4 and 2 months before the expiry of the current permit.
Applications for “talent” permits are made on the dedicated platform, while other applications are submitted to the Prefecture of the place of residence, according to procedures that may vary locally
Did you know?
If the residence permit held does not allow the person to carry out the planned salaried activity, the employment contract can only begin after obtaining a favorable decision from the Prefecture on the request for a change of status.
How to verify the authenticity of a residence permit?
Any employer wishing to recruit a foreign candidate is required to verify the authenticity of the residence permit no later than 48 hours before hiring.
This verification is carried out with the Prefecture of the place of work, according to the procedures specified by the latter (email, form or dedicated address).
For students, the application must be sent to the Prefecture of their place of residence.
This process allows the employer to ensure that the document presented is authentic and that the candidate is indeed authorized to work under the conditions stipulated by their permit.
What is the employer tax?
The employer tax is a financial contribution due upon the first admission to residence as an employee of a foreign worker or the reception of a posted or seconded worker in France.
It is collected by the Directorate General of Public Finances (DGFiP).
In principle, any employer recruiting a foreign worker or hosting a posted or seconded worker is liable to pay this tax, except in cases of exemption.
The employer must be able to produce a summary document of the hires concerned.
Certain situations entitle the employee to an exemption, particularly when the employer is recruiting:
- Citizens of the European Union (EU), European Economic Area (EEA), Switzerland or those with similar status.
- Holders of specific residence permits (talent, permanent resident, private and family life, student, intra-company transfer posted or seconded employee).
- Employees for a mission of less than three months.
- Or when it is a job of a family or domestic nature in a private home.
Certain structures, such as public research bodies, foundations recognized as being of public utility, higher education establishments, or foundations and public establishments for scientific cooperation, may also be exempt.
The amount varies depending on the nature and duration of the contract:
- Contract ≥ 12 months: 55% of the gross monthly salary, capped at 2.5 times the statutory national minimum wage
- Contract between three and 12 months: Between €50 and €300, depending on the gross monthly salary of the person concerned.
- Seasonal employment: €50 per month of activity, full or part-time.
- Young professional (bilateral agreement): Between €50 and €300, depending on the individual’s gross monthly salary.
The employer tax is declared and paid according to the procedures applicable to the business’s VAT, via the corresponding tax forms, at the time provided for by the employer’s tax regime.
Calculate your tax
To help calculate the amount of employer tax to be reported on the VAT form, a calculation aid sheet is provided by the Directorate General of Public Finances (DGFiP).