Tax reductions outside property
FIP (regional fund)
A fund invested in regional SMEs. The tax reduction on subscription has been abolished for mainland FIPs and kept for Corsica and the overseas territories.
Overview
Mainland FIPs, invested in regional SMEs, have given no tax reduction since the Act of 14 February 2025.
The fonds d'investissement de proximité (FIP) invests at least 70% of its assets in SMEs located in a geographical area limited to four adjoining regions. The Act of 14 February 2025 abolished the 18% tax reduction on subscription for mainland FIPs. It remains, at 30%, for FIPs invested in Corsica or the overseas territories, which have their own sheet. Capital gains remain exempt from income tax after five years, with social contributions due. Liquidity is nil until the fund is wound up.
How it works
Subscription
Mainland FIP, with no tax reduction
Holding
Units locked in until the fund is wound up
Exit
Capital gain exempt from income tax after five years
Key points
Strengths
- Capital gains exempt after five years, social contributions still due
- Supports the regional economy
- Diversification into unlisted companies
Points to watch
- No tax reduction on subscription for mainland FIPs since the Act of 14 February 2025
- 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
This sheet is for holders of FIPs subscribed before the abolition, who are bound by their holding commitment. It is also relevant to investors considering a Corsica or overseas FIP for its maintained reduction.
Worked illustration
Example based on assumptions
Assumptions: a taxpayer subscribed €5,000 to a mainland FIP before the abolition, obtained a €900 reduction (18%) and must hold the units for five years. The same subscription today gives no reduction outside Corsica and the overseas territories.
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.