A huge thank you to our wonderful Ius Laboris colleagues Guillaume Bordier of Capstan Avocats and Valeria Morosini of Toffoletto De Luca Tamajo e Soci for their knowledge, expertise, and input into this piece.
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For many fans of the hit Netflix show "Emily in Paris" the idea of being sent by your employer to work in Paris would be a dream come true. The idea of shopping in some of the most famous fashion houses in the world, sipping coffees in Parisian café's, and marvelling at the city of lights is what dreams are made of. Watching Emily Cooper's life play out over the past 4 seasons may well inspire professionals to explore the possibility of these overseas working arrangements. Our Rachael Andrew and Emily Thomas (not in Paris, unfortunately!) consider the legal challenges with overseas working arrangements, as proposed in Emily in Paris, and how they work in reality.
*Spoilers ahead*
In the glamorous series, the show follows Emily Cooper, a marketing executive from Chicago, as she unexpectedly gets the opportunity to work in Paris (on what is meant to be a temporary measure) for her to secure promotion and go home to America. Without being versed in the language, she travels to Paris to live and work for Savoir, the newly acquired French arm of her US employer. During her time in Paris, there is love and laughter and loss, and in the latest season 4 Emily Cooper finds herself with the opportunity of potentially managing an agency office in Rome (in what we assume is a group company).
The show makes it look seamless for an overseas national to live and work in France (and maybe Italy), but the real deal requires more planning and understanding of the necessary legal compliance and regulatory considerations that would need to be given when living and working abroad. Inspired by Emily's best friend, Mindy Chen, let's be realists; there are certain critical considerations to think of when wanting to live in France. Below we explore some of the key areas.
Who is the employer?
Is the employee being seconded from the home entity to France or is the home employment terminating and instead the employee is issued with a French employment contract with the French entity? This distinction is important as the home entity will need to understand whether their employee remains their employee (as is the case with secondments) or whether the French entity has become the employer. Further, if this is a secondment, French labour legislation dictates the requirements for it to be set up in a legally compliant way and which provisions of French law will apply. Whenever considering an international move, it's key to understand the employment arrangement as well as the laws in the home and host country that will be applicable with respect to employee rights and employer obligations.
Passports at the ready!
On the assumption that the employee's employment with the home entity has been brought to an end and the employee is employed directly by the French entity, the initial essential consideration for the French entity will be to ensure that the employee has the right to work in France (this would also apply to secondments). Let's not be inspired by Mindy for this particular aspect, where she, in early series of the show, references the fact that her visa has expired several times, but she continues to work in France!
On the assumption the employee will be initially planning to work from France for more than ninety days, the Visa de Long Séjour (the Long-Stay Work visa) is likely to be the visa of choice for the employee as it allows non-EU nationals the ability to work and reside in France for more than ninety days for professional reasons. There are different subcategories of this visa which are relied on depending on the nature of the work the applicant is undertaking. An employee who works in a senior marketing position, for example, might qualify for the Talent Passport subcategory as a skilled worker. This visa is valid for a period of three months to one year and is renewable. In the event of secondment, the appropriate Talent Passport could also be 'employee on assignment - salaried activity'.
Tax and social security
As the employee is employed by a French company (as opposed to still being employed by the home entity and seconded to the French entity), the French employer will have obligations to withhold French income tax and French social security on the employee's earnings. From a personal tax perspective, if we assume the home country is the U.S.A., the U.S.A. is one of the few countries that taxes its citizens on worldwide income, even if they live abroad. As an American citizen, the employee would still be required to file a U.S. tax return every year, regardless of where the employee lives and their tax residency status. However, certain exclusions and credits can mitigate the tax burden. Thanks to the U.S. - France Tax Treaty, the employee may be able to avoid double taxation by offsetting U.S. tax liability with taxes paid in France. The employer will need to ensure the issue of whether they are tax equalising their employee has been fully considered and, if they are, the level of tax support has been agreed with the employee.
Additionally, if the employee is employed by the French entity (as opposed to still being employed by the home entity and seconded to the French entity), the employee would be liable for France's social security contributions, which are mandatory for all employees. The total employee contribution for social security in France can amount to around 20-25% of gross salary, and employers contribute roughly 45% on top of the employee's gross salary. Fortunately, the U.S. has a social security agreement with France, which helps to ensure that the employee wouldn't have to pay into both U.S. and French social security systems (however, the agreement appears to be limited in scope, and it may not cover other benefits like health insurance or unemployment benefits, but this is outside the scope of this article). Under this agreement, some periods of social security coverage in France can be taken into account for her U.S. social security benefits and vice versa (subject to certain criteria and limitations). Again, the employer and employee will want to consider the level of accountancy support the employee will be offered. More money for beautiful handbags (but please no more bucket hats)...
Emily Cooper is really stamping her passport...
It has just been announced that Emily in Paris has been renewed for Season 5 (yay!), so taking our employee example, let's look at the logistics of a France – Italy move.
Immigration
First, if the employee were to be employed by the Italian entity. The employee's legal status and work permit would play a crucial role in determining how seamless this move could be as an "Intra-EU Mobility for a Non-EU National" move. Certainly, a benefit of obtaining a French work permit as a non-EU national is that it could potentially open doors to work elsewhere in the European Union. While intra-EU mobility is typically much easier for EU/EEA/Swiss citizens, non-EU nationals with long-term residency in one EU country may be eligible for similar rights.
However, this depends on the specific visa or work permit the employee holds. For example, if the employee were on a Talent Passport Visa in France, the employee might need to apply for a new work permit in Italy, as the Talent Passport generally only allows for work in France. On the other hand, if the employee had obtained long-term EU residency, the employee could have the right to work in another EU country like Italy, subject to that country's immigration rules.
Should the employee need to start fresh with Italian immigration authorities, the employee would likely need to secure a new work permit. Italy, like France, has a range of visa options for non-EU nationals, including the Visto per Lavoro Subordinato (Work Visa), and the EU Blue Card. For the Visto per Lavoro Subordinato (Work Visa), the employer (being Italian or a 'foreigner legally residing in Italy') must submit a nominative request for work authorization to the competent Single Desk for Immigration (Sui) for the Italian province (Rome in this instance) in which the work will take place. This may be problematic if an employee is being sent to a new country to set up an office as the entity needs to be fully incorporated and functional before the employee can apply for a Work Visa. There is also the Italian Quota system, known as the "Decreto Flussi" (Flow Decree), which regulates the number of non-EU workers who can enter Italy for employment purposes each year. The government sets quotas for different categories of workers. These quotas are established based on labour market needs and economic conditions. For Emily, however, there may not be quotas available if there is not a need for luxury marketing executives in Rome, so applying for a Blue Card might be more appropriate.
If instead, Emily were to be seconded to Italy by the French or US entity, it may be possible to apply for an Intra-Company Transfer Visa, outside of the Quota system. This is, however, a temporary Visa that would not allow Emily to settle in beautiful Rome forever.
Income tax and social security
Relocating to Italy would bring a fresh set of tax obligations. Italy has a progressive tax system with rates ranging from 23% to 43%. As an Italian resident (should the employee be working directly for the Italian entity and for more than 183 days), the employee would be subject to Italian taxes on their global income. However, because of the U.S. - Italy Tax Treaty, the employee could offset any U.S. tax liability through foreign tax credits, just as we set out for France.
Regarding social security, Italy also has a totalization agreement with the U.S. This ensures that the employee's contributions to Italy's social security system would count toward their U.S. social security benefits, avoiding dual contributions.
A global empire
As companies expand their operations across borders, they must ensure compliance with local employment laws, immigration regulations, social security and tax policies in each country where they operate. They'll also need to consider matters such as data protection, intellectual property and the permanent establishment risk.
In addition to legal compliance, one of the key considerations to optimise the chances of a successful relocation that an employer must consider is the well-being of expatriates. One of the best undertones of the show, is the culture shock Emily goes through when she arrives in Paris. When we look at Season 1, Emily was woefully unprepared for her unexpected move to Paris. It is important for employers to consider the wider employee experience when relocating employees. This can include providing comprehensive cultural training, language classes, and ongoing support to help employees adapt to their new environment. Additionally, fostering a welcoming workplace culture and encouraging social integration can significantly enhance the employee's overall experience and productivity. By investing in these areas, companies can ensure a smoother transition and greater satisfaction for their expat employees.
The effects of the cities of love...
What is Paris without romance? For expatriates who fall in love with their host countries (or someone in their host countries), the question of long-term residency and citizenship inevitably arises, could our employee one day become a permanent resident or even a citizen of France - or another EU country?
After five years of continuous residency in France, non-EU nationals can apply for permanent residency. This status allows for a more secure right to live and work in France without the need for visa renewals. Similarly, Italy offers permanent residency after five (5) years of legal residency.
Once the employee becomes a permanent resident in France or Italy, they would have greater flexibility to move within the EU, although working in another EU country would still require a separate work permit unless the employee obtained EU long-term residency, which grants broader rights of movement and work across the EU.
Au Revoir or Arrivederci
Whilst most of us cannot wait for the next season to see how on earth Emily Cooper would make the choice between two of the world's most breathtaking cities, we choose to stay in the 'willing suspension of disbelief' when it comes to the expat experience of global mobility.
Employers play a crucial role in supporting expatriates through these transitions, ensuring that all legal requirements are met and helping with the personal challenges of relocating abroad (which we're sure Sylvie would love!) For expatriates themselves, careful planning, legal guidance, and cultural adaptation are key to a successful global mobility experience.
Whether it's Paris, Rome, or another European destination, global mobility offers a chance to travel the world. Something worth willing to navigate the legal and practical hurdles for, certainement.