Jul 23, 2015 - HR and tax alert ... multi-annual residence permit on entry into France, ... establish a business in acco
HR and tax alert September 2015
France Expanded availability of multi-annual residence permits for foreign workers Executive summary On 23 July 2015, the French Parliament voted for amendments to the draft legislation on the residence of foreigners in France which will extend the availability of residence permits for foreigners living in France. The amendments are due to be reviewed by the French Senate in late 2015, after which they will be implemented in the law. Residence permits are currently granted to individuals who have the right to work by reason of a previously issued work permit. Until now, most of these permits were granted on an annual basis. The proposed reforms will allow certain individuals to obtain multi-annual residence permits after one year of residence in France. In addition, certain categories of individual may obtain a multi-annual residence permit on entry into France, without the requirement for the initial year of residence or, in some cases, having previously obtained a work permit. Background The amendments are in line with the three main priorities of the French Government regarding immigration: To improve the admission and integration of foreigners legally allowed to reside in France To strengthen France’s economic appeal, making mobility easier for global talent To act effectively in the prevention of illegal immigration.
The law would introduce multi-annual residence permits for additional categories of foreign workers which would generally be available after one year of residence in France and valid for up to four years. In addition, certain categories of individual, such as qualified employees, investors, research workers and artists, will now be able to apply for a new multi-annual residence permit, known as a “Passeport talents”, upon entry into France. Such a permit will also be valid for four years and will apply to the foreign national as well as his or her family. Key considerations For most immigration statuses, the new multi-annual permits will be available after the expiry of the initial one-year permit, provided the foreign national demonstrates a willingness to adhere to French culture and values. The new “Passeport talents” relevant for global mobility moves will apply to the following categories of foreigners: Highly Qualified Worker (“travailleur hautement qualifié”), which will require a 3-year undergraduate university degree or 5 years of professional experience at the same level as the job offered in France, a French employment contract for at least 12 months, and a threshold salary that is yet to be determined. This immigration status replaces the previous European Blue Card.
Intra-Company Transfers (“salarié en mission”): an intra-group transfer, with 3 months of service in a group entity prior to being transferred to France and a threshold salary that is yet to be determined. Entrepreneur (“créateur d’entreprise”), which will require a Master’s degree or 5 years of experience and the individual is further required to establish a business in accordance with specific conditions which are yet to be determined. Investor (“investisseur”), which requires a direct investment in France. The conditions are yet to be determined, but the amount of investment is expected to be decreased from €10,000,000 to €500,000 and the number of jobs to be created in France is reduced from 50 to 10 employees. Chief Executive Officer or representative of a company in France (“mandataire social” – “président”): this requires nomination of a legal representative or chief executive officer of an entity registered in France, and a threshold income which is yet to be determined. This immigration status was previously covered under Skills and Talents status (“carte compétences et talents”). Renowned international talent in the area of science, literature, academia, education or sports. The status requires international fame and activity in France in one of the indicated areas. This immigration status was previously covered under Skills and Talents status (“carte compétences et talents”). Under certain categories, for instance highly-qualified workers or intracompany transfers, the professional activity may be pursued without a previous work permit. The practical implications are yet to be determined. Accompanying spouses and minor children will be issued a permit for the duration of the validity of the principle holder of the “Passeport talents”. This immigration status will authorize family members to work. Next steps Employers should be aware of the changes in French immigration law, which should ease the immigration process for work and residence permit applications. New procedures are to be followed in the near future, notably related to the highly-qualified workers or intra-company transfers, since the professional activity may be exercised without a previous work-permit.
EY | Assurance | Tax | Transactions | Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. Ernst & Young LLP is a client-serving member firm of Ernst & Young Global Limited operating in the US. About EY’s Human Capital services Our global mobility teams advise many of the world’s largest global employers – as well as those just venturing into their first foreign country. Our performance and reward professionals help you design compensation programs and equity incentives that really engage your key people. We help you meet your executive tax compliance obligations, stay on top of regulatory change, manage your global talent effectively and improve your function’s strategic alignment. It’s how EY makes a difference. © 2015 EYGM Limited. All Rights Reserved. EYG no. DN0890 ED None
Xavier Delaunay Tel: +33 1 55 61 17 77 Email:
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This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.
Emmanuel Morisson-couderc Tel: +33 1 55 61 13 69 Email:
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