Immigration Law

As a foreigner wishing to work in France for a duration exceeding the default 3 months, you may benefit from the 2020 advent of the multiyear residence card, or ‘Talent Passport’ issued for the highly skilled workers, investors and artists. The visa is valid for a maximum of 4 years and is renewable, with the possibility of eventually applying for French citizenship. It should be noted that the holder of a ‘Talent Passport’ may be accompanied by his or her family during his or her stay in France as an accompanying family.

France’s multiyear residence card was established in the Order of the 16^{th of} December 2020 and has since replaced the “competencies and talents” visa program in the framework of the 2020 reforms on the Code on the entry and residence of foreigners and the right of asylum (CESEDA). There are four different residency cards available under this procedure:

• Talent Passport.
• Talent Passport – EU Blue Card;
• Talent Passport – Researcher – Exercise of an Activity.

Talent Passport – Research – Mobility Program.

The Talent Passport is a multiyear residence card made available under a certain number of scenarios:

• Qualified employee
• Recruitment in an innovative company
• Highly skilled
• Employee on mission
• Researcher
• Creating companies
• Innovative project or company recognized by a public body
• Investor
• Corporate Agent
• Arts and Culture
• Internationally renowned person

The key differences characterizing this talent passport from the traditional residence permit is its multiyear validity. Typically, obtaining a multiyear residence permit is conditioned by previous residency within France, following the renewal of your initial residency card.

When applying for residency in France, the Talent Passport brings about certain special benefits through its multiyear validity. Another advantage however is the card’s applicability to the holder’s family members who can also be issued the card titled ‘Talent Passport – Accompanying family’ on the basis of their family ties.

The disadvantage of this card is that the Prefect is authorized to check whether the foreigner still meets the conditions justifying the issuance of the card. In this way, the Prefect is granted the possibility to refuse the renewal of the card if the foreigner’s situation has changed.

The multi-year “talent passport” for foreign investors in France is provided for in Article L. 421-18 of the CESEDA, which states that

“A foreigner who makes a direct economic investment in France is issued a multi-year residence permit titled “talent passport” issued for a maximum period of four years, renewable. This permit allows for the pursuit of a commercial activity related to the investment project justifying its issue.”

In order to benefit from the multi-year “talent passport” card for foreign investor in France, you must meet the following conditions:

• In the case of an investment via a company, the investment must be made through a company personally managed by the applicant on in which the applicant owns at least 30% of the company capital.
• In the case of a personal investment, the applicant must have invested personally within a company in which the applicant owns at least 10% of its company capital.
• The applicant must plan to gain or maintain employment within the duration of the 4 years of residency in France.
• The amount invested within the project must represent at least 300 000 € in:
• Tangible fixed assets, i.e., material goods held permanently by a company and used in the context of its business activity (purchase of land, a building, utility vehicles, machines or large tools necessary for the business, etc.)
• Intangible assets, i.e., any non-monetary asset without physical substance intended to be used by the company in the course of its business over more than one accounting period (purchase of a patent, a trademark, goodwill or software, etc.)

In any case, regardless of the type of investment chosen, the minimum direct investment of €300,000 is made through

• An investment in share capital (equity investment of more than 10%, real estate investments, capital increase).

The investment in share capital will therefore take the form of a cash contribution (contribution of a sum of money) or a contribution in kind (movable or immovable property, real estate investment), the consequence of which will be an equity investment of more than 10%. This investment may be made in the context of a capital increase of the invested company. In return, the investor will have shares representing at least 10% of the capital held. This investment necessarily reflects a desire to establish itself in the company on a long-term basis.

• Reinvested earnings (undistributed portion of the operating results of subsidiaries and other investments).

These profits are part of direct investment relationships between affiliated companies. Affiliated companies are defined as companies personally managed by the applicant for the multi-year card or in which he/she holds at least 30% of the capital and the French company that is the subject of the investment and the companies it controls.

Therefore, it is a direct investment when the profits made by the affiliated companies are left at the disposal of the subsidiaries, which then invest them in the French company, in exchange for shares and voting rights. The investment may come from the company personally managed by the applicant of the multi-year card or from companies that this company controls through reinvested profits.

• Inter-affiliate loans (loans between direct investors and companies in which they have invested or loans between companies in the same group).

This is a loan made between the investor and the companies it controls and the invested company and the companies it controls itself is a direct investment. These loans must then be spread over a period of up to 4 years and any request for early repayment must be supervised.

On the other hand, indirect investments (financial or portfolio investments) do not fall within the scope of this residence permit.

It is important to understand that in order to benefit from the multi-year “talent passport” for economic investors in France, the investment must be made directly by the means mentioned above.

It is important to specify that these direct investments must continue and demonstrate the applicant’s desire to invest in long-term projects.

In fact, the duration of validity of this residence permit is determined by the nature, characteristics and duration of the investment planned by the foreigner on French territory, within the limit of a maximum duration of four years before applying for renewal of the permit.

The authority in charge of issuing the permit is responsible for verifying the foreigner’s desire to settle in France in order to monitor the implementation of his or her investment. In fact, for the administration, a simple investment does not require residence in France and therefore does not qualify for a residence permit.

The multi-year “talent passport” for recruitment in an innovative company is provided for in Article L. 421-10 of the CESEDA, which states that:

“A foreigner who is recruited in an innovative company carrying out research and development projects, as defined in article 44-0 A of the General Tax Code, or in an innovative company recognized by a public body to carry out functions related to the research and development project of this company or to its economic development, A multi-year residence permit bearing the word “talent passport” will be issued for a maximum of four years, subject to proof of compliance with a salary threshold set by decree of the State Council or Conseil d’Etat. The criteria enabling a public body to recognize an innovative company are defined by decree and their list is published by regulation”

In order to obtain a multi-year “talent passport” permit for recruitment in an innovative company, the following conditions must be met:

• The applicant’s duties are directly related to the research and development project of this company.
• The employment contract that provides for gross annual remuneration equal to or greater than €37,310.
• be recruited by:
  • an innovative company, a company defined in article 44 sexies-0 A of the general tax code which states that “a company is qualified as a Young Innovative Company carrying out research and development projects when, at the close of the financial year, it simultaneously meets” the following five conditions:
  • Be an SME.
  • Be less than eight years old.
  • Have a minimum volume of research expenses or involve students or young graduates up to a minimum of 10% of the company’s shares.
  • Be independent.
  • Be new.
• a company recognized as innovative by a public body according to the criteria set by Decree No. 2019-152 of February 28, 2019:

1° The company is or has been a beneficiary over the last five years of public support for innovation on a list set by order of the minister in charge of the economy.

2° Part of the company’s capital is held by a legal entity or an alternative investment fund whose main purpose is to finance or invest in innovative companies and whose securities are not listed. The list of these legal entities and investment funds is fixed by decree of the minister in charge of the economy.

3° The company is or was accompanied during the last five years by a structure of accompaniment dedicated to the innovative companies.

III. – When it meets one of the criteria set out in II, the Minister responsible for the economy issues the company with a certificate recognizing its innovative nature.

IV. – The implementation of the criteria mentioned in II is subject to an annual joint evaluation by the Ministry of the Interior and the Ministry of the Economy.

The residency card is valid for the same duration as the employment contract and up to a maximum of 4 years before renewal.

The multi-year ‘Talent Passport’ residency card for corporate officers is provided for in article L. 421-19 of the CESEDA, which states that:

“Foreign nationals who hold the position of legal representative in an establishment or company established in France, as long as they are an employee or corporate agents in an establishment or company of the same group, shall be issued a multi-year residence permit bearing the words “talent passport” for a maximum of four years, subject to proof of the salary threshold set by decree by the State Council or Conseil d’Etat. This card allows the holder to carry out the business activity that justified its issuance”

In order to obtain a multi-year “talent passport” for corporate agents, all of the following conditions must be met

• hold a position as a legal representative in a company established in France.
• have worked for at least 3 months as an employee or corporate officer in a company of the same group.
• have a gross annual compensation equal to or greater than 55 965 €.

Depending on the legal form of the subsidiary or company created in France, the legal representative may be:

• The manager of a limited liability company (SARL).
• The chairman and managing director of a public limited company (SA) or a simplified joint stock company (SAS).
• A natural person with the power to bind a foreign legal entity (branch or liaison office representative).

The duration of validity of this title is determined for a period corresponding to that of the applicant’s project and within the limit of four years before renewal.

The legal time limit for processing an application for a residence permit is of maximum 4 months after the completed application has been submitted and the delivery receipt has been issued.

At the end of this period, if the prefect has not taken any action regarding your application, an implicit decision of rejection is issued.

In order to contest this decision, it is necessary to send a registered letter with an obligatory acknowledgement of receipt to the prefect to demand justification for the unfavourable decision. The prefect is seized with an obligation to respond within two months of your request.

The process applications delays vary from one prefect to another. It is therefore recommended to carefully evaluate your chances at a successful reversal of opinion before initiating legal action.

If the application for a multi-annual “talent passport” is accepted, it is possible to apply for naturalization by decree after 5 years under certain conditions.

Indeed, you must meet all of the following conditions:

• You must lived in France continuously for at least 5 years under a renewed multi-year “talent passport” residency card;
• Have a valid residence permit at the time of your application;
• Remain in France for the duration of the entire procedure, or at least be resident in France.
• Have ‘sufficient and stable resources;
• Show integration In France through professional insertion
• Strong command of the French language and sufficient knowledge of French history, culture and society;
• Adherence to the principles and values of the French Republic;
• No polygamy;
• No criminal convictions in France or in other countries in the last ten years;
• Absence of tax debt or debt to the administration;
• Proof of health insurance.

If all of these conditions are met, the application is accepted and a test (the naturalization interview) must be passed. Once the application is accepted, the applicant obtains a passport within a window ranging from six months to two years. Minors however are automatically naturalized French upon request.

Our firm is here to assist you in your administrative and litigation procedures concerning all future applications, from Talent passports to prospective citizenship applications.