Other forms of tax credits and reductions

As mentioned on the previous page, home services are a common way in which people accrue tax credits.

A variety of other tax credits and reductions exist. 

A reduction gives an amount that can be deducted from your final tax bill, but it cannot benefit you if, for example, you have no income tax to pay.

A credit is similar, but if you do not have enough tax owing to benefit then the credit reduces your bill to zero (if there was something to pay) and then you obtain the remainder as a bank transfer from the tax office. 

Examples of tax credits

• Adaptations in the main home for older people or others with autonomy difficulties: Can be claimed by both tenants and homeowners. Worth 25% of expenses within a ceiling of €5,000 for a single person (double for a couple), plus €400 per dependent. Applies over a five-year period. At least one person in the household must be over 60 with recognised autonomy problems, or have 50%+ incapacity. It is means-tested: those with intermediate income are eligible. Those on modest or very modest incomes may apply for the MaPrime Adapt’ grant instead. More information is available from service-public.gouv.fr. Income categories depend on size of household and residency in Ile-de-France or elsewhere. As an example, a single person outside Ile-de-France is seen as ‘intermediate’ with income from €22,015 to €31,394; a couple in Ile-de-France qualifies with income from €42,463 to €49,996.

• Childcare outside the home: Up to 50% of costs for a child under six (age as of January 1, 2025) looked after by a childminder, crèche, or after-school or holiday club within a ceiling of €3,500 per child (therefore a total credit per child of €1,750) . Do not include factors such as meals or extras that are not part of the general service of looking after the child (a small set amount per days for childminder expenses such as buying games and toys and part of the home utility bills, can be factored in, however). Crèches should itemise their bills so you can see ‘extras’ such as meals etc. Applies to your own dependent children or grandchildren if an adult child is part of your tax household. Any benefits received from the Caf family allowance office or an employer should be deducted from claimed amounts. Accredited childminders should provide an attestation fiscale Pajemploi.If you employ a nanny at home, you can claim the tax credit for employing in the home. Costs incurred for having older children looked after can also be claimed under the credit for work in the home. You do not have to supply documents proving these costs but should retain them in case of queries.

See more information on this impots.gouv.fr page.

• Electric car charging point installation: 75% of costs within €500 of expenses per home (main and/or second for French tax residents). Doubled for couples installing two points. The charger must be ‘pilotable’, with a system to modify power use or set a timer.

See more information on this impots.gouv.fr page.

Tax reductions

• Care home costs: Equal to 25% of amounts paid for dependency and accommodation fees, within a ceiling of €10,000 per care home resident. Amounts received from APA dependency benefit and housing benefit should be deducted from amounts claimed. Can be combined with a tax credit for employing in the home if one partner lives in a care home and the other employs someone at home.

See more information on this impots.gouv.fr page.

• Capital investments into small or medium-sized firms in the EU or EEA: Equal to 18% (sometimes 25%). Must have been started in the last ten years; shares must generally be kept for five years. Investments can be taken into account up to €50,000 for a single person (double for a couple); excess can be carried over for four years. Conditions apply (more information at impots.gouv.fr). 

Educational expenses

The tax declaration includes a section which asks for the number of children in secondary or higher education: Nombre d’enfants à charge poursuivant leurs études. This will give a reduction towards schooling costs.

Buy-to-let schemes

There have been various schemes over the years to encourage people to invest in buy-to-let. 

One is the Pinel scheme, which closed at the end of 2024 for newcomers, but the benefits may continue to be claimed by those who already used it. It applies to new properties or older ones that you have renovated at a cost equal to at least 25% of the total property cost, then rented out as homes to tenants with incomes below modest income ceilings.

The rents must not exceed certain levels. It can apply to no more than two properties per year, and they must be located in certain parts of France. It results in a tax reduction against the cost of purchase, limited to €300,000 per taxpayer per year and €5,500 per square metre of living space.

The amount of the reduction varies depending on how long you agreed to rent out the property, and the benefit is spread over a number of years.

There is a similar scheme called Denormandie, continuing until at least the end of 2027, which gives a tax reduction to people buying a property to renovate in certain areas, for example where housing is generally sub-standard or areas deemed in need of an economic boost, to then rent it out. The reduction is 12–21% of the value of the property (see the economy ministry’s website for more).

Another scheme, called the Malraux, relates to people doing major renovations of properties in areas deemed of historic or cultural value and allows a reduction equal to up to 30% of the renovation costs.

Landlords who rent out property can, under certain conditions, benefit from Loc’Avantages, which gives a tax reduction equal to 15–65% of the annual rent depending on the level of rent and whether a social housing intermediary is used. It is necessary to charge a lower-than-market rent, but the ceilings are set locally according to market conditions.

If you have rental income, this can benefit from the micro allowances if it is within certain ceilings (see chapter 6, section 'How to declare rental income'). If, on the other hand, you declare under the réel system, you can claim actual costs incurred relating to the property, such as renovations. 

If it is a furnished rental, you can also benefit from amortissement, which allows you to deduct a certain amount for depreciation of the property and its furnishings due to wear and tear. 

However, be aware that amor­tis­sement (depreciation) claimed in the tax return will now be factored in again if you sell the property, with regard to calculation of capital gains tax.

Cinema, overseas industry, forests

This guide cannot be exhaustive in all the kinds of tax breaks that exist. Another, is paying into a PER private pension scheme (see the final section in chapter 6). A few less well-known ones include:

Sofica: If you invest in French cinema you can benefit from a tax reduction of up to 48% of the amount.

Girardin Industriel: 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.

Groupements forestiers d’investissement: A way of investing in forests, allowing for an 18% or 25% tax reduction on the amounts invested. You have to pledge to keep the shares for a certain period.