Five ways to pay less tax in France in 2021

This year’s tax declarations are over but there are schemes you can invest in now to reduce your tax bill on 2021 income, payable in 2022

14 July 2021

We re-cap five different schemes you can invest in to reduce your tax bill on 2021 income Pic: CrizzyStudio / Shutterstock

1. Loi Pinel

If you buy a new flat and rent it out at a moderate rent, tax deductions of up to 21% of the property value are possible over several years. The scheme is being phased out by 2025 but it is expected to be replaced with an alternative.

2. Plan Epargne Retraite (PER)

This new kind of French private pension allows you to deduct money paid in from your taxable income, within a ceiling of 10% of the payments.

3. Investing in small businesses

A tax reduction called IR-PME is available at 25% of the investment. Invest directly, for at least five years, or via FIP or FCPI funds. The rate was only 18% last year but the higher 25% rate is to last until at least 2022.

4. Girardin Industriel

This allows a tax reduction of 110- 120% of the amount invested in a scheme to help small businesses in the overseas regions rent industrial equipment.

5. Sofica

If you invest at least €5,000 in French cinema you can benefit from a tax reduction of up to 48% of the amount.

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