Real Tax Regime vs Micro-Enterprise: When and Why to Switch?
The micro-enterprise is simple, but not always the most advantageous. Beyond a certain level of professional expenses or revenue, switching to the real regime can save you thousands of euros per year. Here is how to decide.
Recap: how micro vs real work
In the micro-enterprise, the tax authority applies a flat-rate allowance to your revenue to calculate your taxable profit. This allowance is supposed to represent your average professional expenses:
- 71% for sale of goods (BIC retail)
- 50% for service provision (BIC services)
- 34% for liberal professions (BNC)
If your actual expenses are lower than the allowance, micro is advantageous. If higher, the real regime lets you deduct your true costs.
Under the real regime, you deduct actual professional expenses from your revenue to calculate your profit. Deductible items include: equipment, software, office rent, travel, training, Madelin mutual insurance, etc.
When does the real regime win?
The decision rule is simple: compare your actual expenses to the flat-rate allowance.
Example: BNC (liberal profession), revenue €60,000
| Regime | Taxable base | Verdict |
|---|---|---|
| Micro (34% allowance) | 60,000 × 66% = €39,600 | — |
| Real with €15,000 expenses (25%) | 60,000 - 15,000 = €45,000 | Micro wins |
| Real with €25,000 expenses (42%) | 60,000 - 25,000 = €35,000 | Real wins |
For BNC, the real regime wins once your expenses exceed 34% of revenue.
A developer buying premium equipment, paying for a co-working space at €300/month and subscribing to several SaaS tools can easily reach 35–40% in expenses — making the real regime more interesting.
Is the real regime mandatory?
Yes, in two cases:
1. You exceed the micro revenue caps (€77,700 for BNC/BIC services, €188,700 for BIC retail) — the switch is automatic
2. Your activity is excluded from the micro regime (certain real estate entities, agricultural activities, specific regulated professions)
Outside these cases, you can stay on micro indefinitely — even if the real regime would be fiscally more advantageous.
What expenses are deductible under the real regime?
Main deductible expenses for a freelancer:
- Professional equipment: computer, screen, phone, peripherals (immediate deduction or depreciation depending on value)
- Software and subscriptions: SaaS tools, software licences
- Office rent or home office share (5–30% of rent depending on dedicated surface area)
- Travel: transport, accommodation for client missions
- Professional training
- Madelin mutual insurance (deductible for BNC real regime)
- Voluntary pension contributions (PER)
- Accountant fees
- Phone and internet (professional share)
The constraints of the real regime
Switching to real is not without cost:
- Rigorous accounting required: maintain a journal, keep all receipts for 6 years
- More complex tax return: form 2035 (simplified BNC real) or 2031 (simplified BIC real)
- Accountant often essential: €100–300/month depending on complexity
- VAT returns if you exceed exemption thresholds
Simplified vs normal real regime
For most freelancers on BNC, the simplified real regime (form 2035) is more than sufficient. The normal regime is only required above very high revenue thresholds (generally €789,000 for services — not relevant for solo freelancers).
How to switch to the real regime
The switch is possible at the start of a fiscal year (1 January) by notifying the tax authority before 1 February of the application year, or at business creation.
Important: the switch to real is an irrevocable annual option for the current year. Once on real, you cannot return to micro that same year.
Our verdict
The micro regime suits the vast majority of freelancers whose actual expenses are lower than the flat-rate allowance. If you have significant professional costs (office rent, expensive equipment, frequent travel) and your revenue exceeds €50,000–60,000, run the comparison with an accountant — the saving can easily justify the fees.