Feeling boxed in by complex tax codes and endless paperwork? If you’re an entrepreneur or digital nomad searching for a streamlined, low-bureaucracy way to operate in Réunion (RE), you’re not alone. Many independent professionals are frustrated by the administrative drag and high costs imposed by traditional business structures. Fortunately, Réunion—an overseas department of France—offers a data-backed, practical solution: the micro-entrepreneur (formerly auto-entrepreneur) status. Here’s how you can leverage this regime in 2025 to optimize your tax burden and maximize your freedom.
Micro-Entrepreneur Status: Availability and Key Features in Réunion (2025)
Réunion applies French law, making the micro-entrepreneur status fully accessible to residents. This regime is designed for individuals who want to invoice clients without the hassle of creating a separate legal entity. It’s widely used by freelancers, consultants, and small-scale traders who value simplicity and autonomy.
At a Glance: Micro-Entrepreneur Regime (2025)
| Feature | Details (2025) |
|---|---|
| Status Name | Micro-entrepreneur (Auto-entrepreneur) |
| Who Can Apply? | Any individual resident in Réunion |
| Legal Entity Required? | No separate legal entity needed |
| Turnover Ceiling (Goods) | €188,700 (approx. $204,000) |
| Turnover Ceiling (Services) | €77,700 (approx. $84,000) |
| Tax Rate (Goods) | 12.8% of turnover |
| Tax Rate (Services/Liberal Professions) | 22% of turnover |
| VAT | Franchise en base de TVA (exemption up to ceiling) |
| Income Tax Withholding | Optional (if eligible) |
| Social Contributions | Paid as a percentage of turnover |
How to Optimize Your Tax Position as a Micro-Entrepreneur in Réunion
Let’s break down the most effective tactics for minimizing your fiscal footprint while staying fully compliant in 2025.
Pro Tip 1: Choose the Right Activity Code
- Identify your main business activity—whether it’s trading goods, providing services, or a liberal profession. Your activity determines your tax rate (12.8% for goods, 22% for services/professions).
- Register with the correct code to avoid misclassification and unexpected tax bills.
Pro Tip 2: Monitor Your Turnover Ceilings
- Track your annual revenue closely. Exceeding €188,700 ($204,000) for goods or €77,700 ($84,000) for services in a calendar year will disqualify you from the micro-entrepreneur regime.
- Plan your invoicing to stay within the ceiling, or prepare to transition to a different business structure if you anticipate growth.
Pro Tip 3: Leverage VAT Exemption
- Benefit from the franchise en base de TVA—no VAT to collect or remit as long as you stay under the turnover thresholds.
- Communicate your VAT exemption to clients on invoices to avoid confusion.
Pro Tip 4: Simplify Your Accounting
- Take advantage of simplified bookkeeping: only record your turnover and keep supporting documents. No need for complex accounting software or hiring a full-time accountant.
- Use the official online portals for registration and tax declarations: Service Public and Impôts.gouv.fr.
Pro Tip 5: Consider Income Tax Withholding
- Evaluate eligibility for prélèvement libératoire (income tax withholding at source). This can simplify your tax payments and avoid year-end surprises.
- Check the latest thresholds and conditions on the official government sites before opting in.
Case Example: Freelance Web Developer in Réunion (2025)
Imagine a freelance web developer based in Réunion, billing €60,000 ($65,000) in services in 2025. Under the micro-entrepreneur regime, they pay 22% in taxes and social contributions on turnover, with no VAT to collect. Their administrative burden is minimal, and they remain fully compliant with French law—while enjoying a high degree of operational freedom.
Summary: Key Takeaways for Entrepreneurs in Réunion
- The micro-entrepreneur status is fully available in Réunion in 2025, offering a streamlined path for individual business activity.
- Turnover ceilings are €188,700 ($204,000) for goods and €77,700 ($84,000) for services.
- Tax rates are fixed and predictable: 12.8% for goods, 22% for services and liberal professions.
- VAT exemption and simplified accounting reduce compliance headaches.
- Income tax withholding is optional for eligible entrepreneurs.
For more details and official guidance, consult these resources: