Tax reductions outside property
FCPI (innovation fund)
A fund invested in innovative SMEs. The tax reduction on subscription was abolished on 21 February 2026, except for FCPIs invested in young innovative companies.
Overview
An FCPI invests in unlisted innovative SMEs, with a 30% tax reduction when the fund is invested in young innovative companies.
The fonds commun de placement dans l'innovation (FCPI) invests at least 70% of its assets in unlisted innovative SMEs. The 2026 Finance Act abolished the 18% tax reduction on subscription for payments made from 21 February 2026. Only FCPIs invested in young innovative companies (JEI) still give a reduction, at 30%, up to €75,000 of payments for a single person and €150,000 for a couple. This reduction requires the units to be held for five years. Over 2024-2028, the total reduction obtained on subscriptions in young innovative companies, directly or through an FCPI, is capped at €50,000. Capital gains remain exempt from income tax after five years, with social contributions still due. Liquidity is nil until the fund is wound up, in practice after five to ten years, and costs are high.
How it works
Subscription
Standard FCPI, or FCPI invested in young innovative companies
Tax reduction
30% in the year of payment, for FCPI-JEI only
Exit after five years
Capital gain exempt from income tax
Key points
Strengths
- 30% reduction reserved, since 21 February 2026, for FCPIs invested in young innovative companies
- Capital gains exempt after five years, social contributions still due
- Pooled exposure to innovation
Points to watch
- Standard tax reduction abolished for payments made since 21 February 2026
- Total reduction capped at €50,000 over 2024-2028, including direct subscriptions in young innovative companies
- Very limited liquidity for five to ten years
- High risk of capital loss
- Past performance varies widely from one fund to another
- High management fees
Who it is for
FCPIs concern first those who subscribed earlier and must complete their five-year holding period. They also concern taxpayers prepared to lock up a small fraction of their wealth in an FCPI-JEI, with a real risk of loss, in return for the 30% reduction. An FCPI is not, on its own, a diversification investment.
Worked illustration
Example based on assumptions
Assumptions: a taxpayer subscribed €5,000 to an FCPI in 2025, obtained a reduction of €900 (18%) and holds the units until 2030. The same subscription in 2026 to a standard FCPI no longer gives a reduction. In an FCPI invested in young innovative companies, it gives €1,500 (30%).
Regulatory information
This sheet is a general information document of a commercial nature. It constitutes neither personalised investment advice, nor a recommendation, nor a solicitation, and it is not a key information document. Any decision requires a prior analysis of your situation by a duly authorised professional. Investments carry a risk of capital loss. Past performance is no guide to future performance. Taxation depends on each person's situation and may change.
Risk of partial or total loss of capital: unlisted companies and SMEs carry a high risk of failure. Liquidity is almost nil for five to ten years, with exit depending on the fund's timetable or on a sale. High costs. Tax advantages are conditional on the holding period. Forestry and wine-estate groups are also exposed to climate, health and market hazards.
Complaints and mediation
Any complaint may be sent to ASTERALE, 4 allée Django Reinhardt, 94110 Arcueil, France, or to sebastien.bailly@asterale.fr. Failing a satisfactory reply within two months, you may refer the matter to the competent mediator. For financial investment advice: the AMF Ombudsman (Médiateur de l'AMF), 17 place de la Bourse, 75082 Paris Cedex 02 (www.amf-france.org/fr/le-mediateur). For insurance broking and intermediation, banking and payment services intermediation and property transactions: ANM Conso, 2 rue de Colmar, 94300 Vincennes (www.anm-conso.com, contact@anmconso.com).
Information sheet updated on 6 October 2026. Download the sheet (PDF)
Book a meeting
The first meeting, of about an hour, is used to check whether this scheme has a place in your wealth.