Financial incentives for investment in France

Financial incentives for investment in France

France offers several investment incentives to promote economic growth and attract both domestic and foreign investment. 

Some key incentives include:

  1. Research Tax Credit (Crédit d'Impôt Recherche, CIR): This incentive supports companies engaged in research and development (R&D) activities. It provides a tax credit or a cash refund based on eligible R&D expenses incurred by the company.

  2. Innovation Tax Credit (Crédit d'Impôt Innovation, CII): Designed to encourage innovation, this tax credit provides financial support for innovative activities such as product development, process improvement, and patent applications.

  3. Young Innovative Company (Jeune Entreprise Innovante, JEI) Status: Startups and SMEs involved in R&D can benefit from JEI status, which offers a range of tax advantages, including exemptions from social security contributions for R&D personnel.

  4. Regional Investment Aid: France provides various forms of aid, such as grants, tax credits, and reduced social security contributions, to encourage investment in specific regions. The level of support depends on the region and the type of investment.

  5. Tax Exemptions for New Businesses: Startups and newly established businesses can benefit from tax exemptions and reductions during their initial years of operation. These can include reduced corporate tax rates and temporary relief from certain taxes.

  6. Reduced Capital Gains Tax: Certain types of long-term investments are subject to a reduced capital gains tax rate, aimed at stimulating investment in targeted sectors and eligible companies.

  7. Foreign Holding Company Regime: France has implemented a participation exemption regime for foreign holding companies. Under this regime, dividends and capital gains derived from qualifying investments in foreign companies may be exempt from corporate tax.

  8. Financial Support for Investment Projects: The French government, through entities like Bpifrance, offers financial assistance in the form of loans, guarantees, and equity investments to support businesses in funding their investment projects.

It's essential to note that each incentive has specific eligibility criteria and conditions that must be met. Aizen Consulting will be delighted to help you with your investment projects in France.