Umbrella company for freelancers: the short answer
An umbrella company for freelancers lets you bill clients like an independent while being employed by the umbrella company. You find your contracts and set your day rate; the company invoices, pays you a salary and takes a management fee. At €600/day over 20 days, you keep between 55% and 84% of your invoice depending on the country and your business expenses.
In short:
- You stay a freelancer in practice: your clients, your rates, your schedule.
- You become an employee on paper: unemployment cover, pension, health insurance, no bookkeeping.
- The cost: 9% of your turnover in France and Belgium (€900/month flat below €500/day), a sliding scale in Luxembourg.
- The limit: in France, a single assignment cannot run longer than 36 months.
Why freelancers choose an umbrella company
Freelancers switch to umbrella employment for one main reason: to keep their commercial freedom without carrying social protection and admin alone.
What changes
- Your protection: you contribute as an employee. In France, France Travail states that umbrella employees have access to unemployment insurance, the general health scheme and group income protection.
- Your admin: the umbrella company invoices, chases payment, files the declarations and pays you. No accounts, no VAT returns, no annual statements.
- Your standing with large clients: some clients prefer contracting with a company rather than a sole trader.
What does not change
- You find your own contracts. An umbrella company is not a recruitment agency.
- You negotiate your day rate and scope with your client.
- You organise your own working time.
How umbrella employment works for a freelancer
It rests on three parties and two contracts: an employment contract between you and the umbrella company, and a service contract between the company and your client.
In France, the framework is set by the Labour Code, articles L1254-1 onwards. Article L1254-2 requires the employee to have expertise, qualifications and autonomy sufficient to find clients and negotiate terms.
The 4 steps of an umbrella assignment
1. You land the contract
You agree the day rate, duration and deliverables with your client, as an independent would.
2. The umbrella company signs
It signs the service contract with your client and the employment contract with you.
3. You report your activity
Each month you declare the days worked and your business expenses.
4. You get paid
Once the client pays, the company deducts its fee, pays the contributions and transfers your salary and expense refunds.
How much does a freelancer earn through an umbrella company?
What you keep depends on three things: your day rate, your country and how much in business expenses you can justify.
What you receive = Invoice excl. VAT − management fee − social contributions − income tax
Justified business expenses (meals, travel, overnight stays) are refunded free of contributions, which raises the share you keep.
We ran the same case through our calculators in all three countries: €600/day, 20 days a month, single, no children.
| Country | Monthly invoice | Management fee | What you receive | Share of invoice |
|---|---|---|---|---|
| France | €12,000 | €1,080 (9%) | €6,587 to €8,712, after tax | 55% to 73% |
| Belgium | €12,000 | €1,080 (9%) | €6,728 to €9,173, after tax | 56% to 76% |
| Luxembourg | €12,000 | €1,080 (9%) | €9,178 to €10,110, before tax | 76% to 84% |
Why a range?
The low end is a freelancer with no business expenses to claim: everything is paid as salary. The high end assumes real expenses that allow part of the amount to be paid as refunds. In Luxembourg, income tax depends on your tax class and is not included.
Your situation is different? Try the France umbrella salary calculator, the Belgium umbrella salary calculator or the Luxembourg umbrella salary calculator.
Our management fees, no small print
- France and Belgium: 9% of turnover, or €900 a month flat if your day rate is below €500.
- Luxembourg: €800 a month flat below €400/day, 8% from €400 to €599/day, 9% from €600/day.
Umbrella company or self-employed: the comparison
An umbrella company costs more in contributions than a French micro-enterprise, but it buys protection the self-employed do not have. The right choice depends on your day rate, the length of your contracts and how much security you want.
| Criterion | Micro-enterprise (FR) | Limited company | Umbrella company |
|---|---|---|---|
| Set-up | A few days | Articles, capital, accountant | None: an employment contract |
| Bookkeeping | Simplified | Annual accounts, accountant | None |
| Turnover cap | Yes | No | No |
| Unemployment cover | No | No (with rare exceptions) | Yes |
| Pension | Self-employed scheme | Depends on director status | General and supplementary employee schemes |
| Main cost | Contributions on turnover | Accountant + contributions or dividends | Management fee + employee contributions |
For the detailed numbers against the most common status, read umbrella company or auto-entrepreneur.
Our view: umbrella employment is not for everyone. With a low day rate and short contracts, a micro-enterprise will often leave you more money. Umbrella employment pays off when you bill steadily, want unemployment rights between contracts, or work in Luxembourg, where you keep more than 75% from €600/day.
France, Belgium, Luxembourg: what changes for a freelancer
Most umbrella companies cover one country. If you live near a border, the country of your assignment changes your income as much as your day rate does.
In France
Umbrella employment has been governed by the Labour Code since the ordinance of 2 April 2015. Your client may only use it for an occasional task or expertise it lacks in-house (article L1254-3), and the assignment cannot exceed 36 months (article L1254-4). A minimum salary applies, set by the umbrella employment collective agreement according to your level; our simulations use 75% of the social security ceiling, about €3,004 gross in 2026. The official guide is on entreprendre.service-public.gouv.fr.
In Belgium
Belgium draws many IT and finance consultants, especially in Brussels. Flat-rate allowances weigh heavily in the result, which is why Belgium comes out ahead of France in the table above. Everything is in our guide to umbrella employment in Belgium.
In Luxembourg
Employer and employee social contributions are much lower than in France or Belgium, so you keep a larger share. If you are a cross-border worker, two thresholds matter: under 50% telework to stay insured in Luxembourg, and 34 days a year for tax. Read about the legal framework for umbrella employment in Luxembourg and the cross-border worker guide.
Which freelancers is it for?
Umbrella employment suits expertise billed by the day, where the client pays for a skill rather than a job.
Profiles it works well for:
- IT consultants: developers, architects, project managers, data, cybersecurity;
- finance, compliance, audit and project management consultants;
- trainers, coaches, marketing and HR consultants;
- engineers and technical experts on long assignments.
When it is not a good fit:
- trading activities (buying and reselling goods): umbrella employment covers services only;
- covering for an absent employee, which French law forbids in umbrella employment;
- very low or irregular turnover: fixed costs then weigh too much.
Choosing an umbrella company: 6 criteria
- Readable fees: a clear percentage or flat fee, with no hidden joining or exit charges.
- A written simulation before you sign, with your day rate, your days and your real expenses.
- A financial guarantee: in France, the company must hold one to cover your salaries.
- Payment date: when your salary lands each month.
- Country coverage: if you may work in France, Belgium or Luxembourg, check the company covers all three.
- One named contact who knows your file and answers.
How much would you keep?
Enter your day rate and days worked for an instant estimate in France, Belgium or Luxembourg. Personalised simulation within 24 hours on request.
Calculate my incomeFrequently Asked Questions
Is an umbrella company a good fit for freelancers?
Yes, that is what it is built for: the umbrella employee finds clients and negotiates rates themselves. You need enough expertise and autonomy, which French law (article L1254-2 of the Labour Code) requires.
How much does an umbrella company cost a freelancer?
With us, 9% of turnover in France and Belgium, or €900 a month below €500/day. In Luxembourg: €800 a month below €400/day, 8% from €400 to €599/day, 9% above.
Umbrella company or self-employed: which should I choose?
Self-employment often leaves more money with a low day rate and short contracts. An umbrella company makes more sense if you want unemployment cover, no bookkeeping, or work in Luxembourg.
Can I use an umbrella company in Belgium and Luxembourg?
Yes. We work with freelancers in all three countries. The amounts differ a lot: compare with our Belgium and Luxembourg calculators.
Do I have to find my own contracts?
Yes. The umbrella company handles the contract, invoicing and payroll, but it does not place you with a client. That is the difference from temping.
What happens when an assignment ends?
In France, your contract ends or moves into a period without assignment, depending on whether it is fixed-term or permanent. You may claim unemployment benefit under the standard conditions set by France Travail.