Why French Entrepreneurs Are Launching Their Ventures from Hong Kong

Running a business from abroad comes with its own challenges – from managing international clients to navigating complex tax systems in your home country. For French nationals living or working overseas, there’s an added concern : how to grow globally without being pulled back into France’s complex tax rules.

This is where Hong Kong stands out as the go-to remote business solution. With its business-friendly tax system, zero VAT, and fast, hassle-free company setup, it offers French entrepreneurs abroad unmatched flexibility and efficiency to scale worldwide.

Hong Kong isn’t just a postcard; it’s a strategic lever.

In this article, we’ll explore :

• HK vs France Quick Tax Breakdown
• France’s Tax Rules Made Simple
• Why HK Is the Best Remote Business Solution

Hong Kong’s tax system is one of the most business-friendly in the world, making it a top choice for French entrepreneurs, freelancers, and digital nomads living abroad who are growing their businesses internationally. Whether you’re serving clients across Europe or managing global operations remotely, Hong Kong offers key advantages :

• 0% Tax on Offshore Profits – Income earned outside Hong Kong may qualify for an Offshore Claim, allowing your company to legally pay 0% tax on profits generated overseas.
• No VAT or Capital Gains Tax – Unlike France’s 20% VAT and up to 30% capital gains tax, Hong Kong imposes neither. This helps you reinvest more into your global growth.
• Lower Corporate Tax Rates – Even local profits are taxed lightly, with rates of just 8.25% on the first HK$2 million and 16.5% beyond, compared to France’s flat 25%.
• Fast, Remote-Friendly Setup – You can set up your Hong Kong company from anywhere in the world, often within 48 hours. With multi-currency business accounts, you’re ready for seamless international transactions.

Here’s a quick side-by-side look at France and Hong Kong’s corporate tax rules :

While Hong Kong’s tax system is highly attractive, French nationals need to understand how France’s tax rules could affect their overseas ventures – especially if they still have tax ties to the country.

France taxes worldwide income for individuals considered French tax residents. You’re generally treated as a tax resident if :

• You live in France for most of the year (over 183 days).
• Your main work or financial ties are in France.

If you’re a French national living and working abroad and no longer tied to France for tax purposes, this rule likely doesn’t apply to you. However, for those who remain French tax residents, the Controlled Foreign Company (CFC) rule applies. This regulation targets French tax residents who own or control companies in low-tax jurisdictions like Hong Kong and applies if : 

• You hold a majority share in your Hong Kong company.
• Hong Kong’s tax rate of 16.5% is significantly lower than France’s 25%.
• The company’s activities could reasonably be carried out in France, such as serving European clients remotely.

When these conditions are met, French tax authorities may treat your Hong Kong company’s profits as your personal income and tax them at progressive rates up to 45%, plus social charges of 17.2%.

Apart from CFC rules, there are other tax implications for French residents to watch out for :

• Dividends from a Hong Kong company are taxable in France, though tax treaties may reduce the rate.
• Salaries or management fees are fully subject to French taxes and social charges.

For French expats living abroad who are no longer tax residents in France, these CFC restrictions typically don’t apply. This makes Hong Kong an even more compelling remote business solution.

For French nationals living and working abroad, Hong Kong offers a unique opportunity to build and manage a global business remotely. Its straightforward tax system and flexible corporate structure let you scale internationally without the weight of France’s complex tax rules – as long as you’re no longer considered a French tax resident.

By setting up a Hong Kong company, you can enjoy tax efficiency, global banking access, and the freedom to operate across borders –a all from wherever you are in the world. AsiaBC helps French expats make this a reality with their in-depth expertise in Hong Kong business setup, a strong network of banking partners for global transactions, and hands-on professionals who simplify remote company management every step of the way.

Ready to go beyond borders? If you’re a French or EU entrepreneur or digital nomad, discover how Hong Kong offers a smart, legal pathway to grow globally while managing taxes efficiently.

Chat with us on WhatsApp +852 9578 0528 or email at business@asiabc.com.hk and take your next tax-efficient step.