If you are building a startup in France in 2026, the era of "easy optimization" has officially ended. The 2026 Finance Act (*Loi de finances*) and the Social Security Financing Act (*LFSS*) have introduced a suite of deficit-reduction measures that specifically target capital income and high-earning entrepreneurs. For US founders, navigating founder compensation in France now requires a precision-engineered strategy to balance the new 31.4% French flat tax against rising social contributions.
The 2026 Reality Check
With the Social Security Ceiling (PASS) hitting €48,060 and the flat tax climbing to 31.4%, the traditional advice of "just take dividends" is no longer a catch-all solution. Your corporate structure—SASU vs. EURL—is now your most significant tax lever.
📊 The Three Main Paths: Salary, Dividends, or TNS?
In 2026, the math has shifted. While the French government aims to simplify the system, the divergence between the taxation of labor and capital remains stark. Let's look at how a **€100,000 total company budget** (total cost of employment) breaks down across the three most common structures for US founders.
| Regime | Structure | Social Charges | Net In-Pocket (Est.) | Key Advantage |
|---|---|---|---|---|
| Salary | SASU | ~€45,000 | €46,500 | Top-tier healthcare/pension |
| Dividends | SASU | ~€24,885 (PFU) | €54,365 | Higher immediate cash flow |
| Remuneration | EURL (TNS) | ~€31,035 | €55,965 | Best overall tax efficiency |
Choosing the right structure is part of a broader move. If you're still in the planning phase, our guide on navigating 2026 residency and mandates provides the necessary context for these legal choices.
⚖️ SASU vs EURL 2026: The Strategic Divergence
SASU (Assimilé-Salarié)
The SASU is the go-to for US founders because of its flexibility and its "salaried" status for the president. However, it is the most expensive path.
- • Social Charges: ~75% of net salary.
- • Dividend Friendly: SASU dividends do not attract social charges (unlike EURL), but are now hit by the 31.4% PFU.
- • Visa Strength: High salaries are often preferred by the Préfecture for Talent Passport renewals.
EURL (TNS - Travailleur Non-Salarié)
The EURL places the founder in the "independent worker" regime (SSI), which offers significantly lower overhead at the cost of some administrative complexity.
- • Social Charges: ~45% of net remuneration.
- • Dividend Trap: In an EURL, dividends over 10% of capital are taxed as salary (including social charges).
- • Efficiency: Generally results in the highest "take-home" pay for the same company spend.
The ANEF Hurdle
Regardless of your structure, you must pass the new ANEF business validation. Learn more in our 2026 ANEF Survival Guide.
📈 The 31.4% French Flat Tax Hike
Previously capped at 30%, the *Prélèvement Forfaitaire Unique* (PFU) has been increased to **31.4%** for 2026. While the income tax portion remains at 12.8%, social levies (*prélèvements sociaux*) jumped from 17.2% to 18.6%.
🇺🇸 US-France Tax Treaty Dividends
For US citizens, the **US-France Tax Treaty** provides a unique shield. Under Article 10, the French tax on dividends distributed to a US resident is capped at 15%. However, if you are a resident of France, the 31.4% PFU still applies to your French-source dividends.
The Strategy: The treaty is most beneficial when you have US-source dividend income. For French-source dividends, the PFU is usually the floor. If your global income is high, the new CDHR (Minimum 20% tax) may trigger additional payments if your effective rate is too low.
📏 The €48,060 Social Security Ceiling (PASS)
The French social security ceiling 2026 has been set at **€48,060**. This figure is the "north star" for founder payroll. It determines everything from your pension contributions to your eligibility for tax exemptions.
Why €48,060 Matters for You:
ACRE Eligibility
In 2026, if your income exceeds 100% of the PASS (€48,060), you receive zero ACRE benefit. To get the maximum 25% discount, your income must be below €36,045.
Contribution Brackets
Retirement contributions (Tranche A vs. Tranche B) switch rates at this threshold, significantly altering the cost of salaries above €4k/month.
📜 The "Totalization" Strategy for US Founders
The most powerful tool for a US founder is the **US-France Social Security Totalization Agreement**. Under Article 6, you can avoid French social charges entirely for up to five years by remaining attached to the US Social Security system.
How to Implement the Exemption:
- ✓Link to US Parent: You must be employed by a US entity (not just the French subsidiary).
- ✓Form USA/F 1: Apply for a Certificate of Coverage from the SSA in Baltimore.
- ✓Urssaf Presentation: Present the certificate to Urssaf to stop the 75-80% payroll charge.
Note: You will still pay US FICA taxes, but you'll save tens of thousands in French charges that won't benefit you if you don't retire in France.
This strategy is highly technical. If you're managing a remote-first team, be aware of the Permanent Establishment risks associated with cross-border structures.
🎯 Key Takeaways for 2026
- •Dividend Optimization: The 31.4% PFU makes EURL (TNS) remuneration more attractive than SASU dividends for most mid-range incomes.
- •ACRE Warning: Apply within 60 days of registration. If you pay yourself more than €48,060, the benefit is void.
- •CDHR Threshold: If your global income (including US capital gains) exceeds €250k, watch out for the 20% minimum tax floor.
- •Expert Support: For a personalized simulation of your 2026 burden, visit our Founder Relocation Services.
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