Taking on a Long-Term Construction Site in France: Fiscal and Accounting Considerations

An increasing number of Belgian contractors are operating across the border. France remains an attractive market, thanks in part to infrastructure projects, tourism, and government investments. However, taking on a long-term construction site (lasting more than several months) in France comes with a series of fiscal and accounting obligations that are often overlooked. This article highlights the key considerations for Belgian contractors working on a French site.

1. Permanent establishment or not?

One of the first questions to ask is whether the construction site in France constitutes a permanent establishment (établissement stable) for corporate tax purposes. According to the France-Belgium double taxation treaty, a permanent establishment arises if construction or installation activities last longer than six months.

If this condition is met, the Belgian company is subject to tax in France on the profits attributable to the French site.

Practical note: multiple successive sites at one location or within a single project may be aggregated to calculate the total duration of the work.

2. Filing obligations and French corporate tax

If there is a permanent establishment, the following must be done:

• apply for a French SIRET number;
• file a corporate tax return (impôt sur les sociétés);
• prepare French annual accounts according to French accounting standards.

These obligations apply regardless of whether the Belgian accounting system already calculates a separate result for the site. France expects a local allocation of results through a separate balance sheet and profit and loss statement.

3. Accounting impact

Having a construction site in France also has accounting implications in Belgium:

• The site must be monitored separately in the Belgian accounts;
• Costs and revenues must be allocated to the site;
• A separate French accounting system must be maintained in compliance with French standards – including the ability to generate FEC files (Fichier des Écritures Comptables).

4. Avoiding double taxation

In the case of a permanent establishment in France, Belgium must exempt the profit taxed in France, provided the double taxation treaty is properly applied. This requires an accurate allocation of profit based on the arm’s length principle and clear documentation.

5. VAT and French fiscal representation

Even without a permanent establishment, French VAT obligations may arise:

• in the case of deliveries and services where the place of taxation is France;
• when entering the French real estate market (e.g., construction work on immovable property).

The Belgian contractor may need to register for VAT purposes and, in some cases, appoint a fiscal representative.

6. Social obligations: SIPSI, A1, URSSAF

In addition to fiscal obligations, there are also social formalities when employing personnel on a French site:

• SIPSI notification before the start of work;
• A1 forms to demonstrate coverage under Belgian social security;
• In some cases, a local representative in France must be appointed to present documents to inspection authorities;
• URSSAF registration is required when posting workers, to monitor compliance with wage and employment conditions.

Read more about secondment in France in this article.

7. Insurance: ten-year liability

In France, a ten-year liability insurance (assurance décennale) is mandatory for construction projects. Belgian contractors often face practical difficulties here: French insurers are generally reluctant to issue this policy to foreign companies, even in cases where there is a permanent establishment in France.
In exceptional cases, it may still be possible through a French branch (établissement secondaire), but the trend is increasingly toward setting up a separate French legal entity to meet insurance requirements. Without proper coverage, the contractor risks being excluded from the French market or remaining liable without insurance in case of damage.

Conclusion

Taking on a long-term construction project in France means much more than simply performing a contract on French soil. There are fiscal, social, and accounting obligations that must be fulfilled timely and correctly. Proper preparation not only avoids fines and tax adjustments but also prevents unpleasant surprises in dealings with the French tax authorities or labour inspection.
 

Tip: Have an impact analysis carried out in advance regarding the project's effect on French and Belgian filing obligations. Also consider the practical feasibility of obtaining ten-year liability insurance.

RFN assists Belgian contractors with every aspect of this preparation – from fiscal registration to insurance and accounting – so you can enter the French market with confidence.