Tax benefits scheme for rural businesses revived in France
Relocating your business to the countryside areas could unlock tax exemptions and payroll benefits
Financial incentives are offered to tempt businesses to move to rural areas
Credit: James O'Sullivan/Alamy
A little-known scheme introduced in the 1990s to boost rural job prospects is being revived by the government. The finance ministry website promised in February: “Ever wanted to leave the town to move your business in the countryside? If you do so in a ZRR you could benefit from tax exemptions and payroll contributions.”
Much of rural France is designated as a zone de revitalisation rurale (ZRR), however most, but not all, were reclassified as France ruralitiés revitalisation, in mid-2024. If you open a business in a FRR commune you may receive the same benefits, plus some help.
Details of the schemes can be challenging to understand but are aimed at businesses employing fewer than 11 employees on permanent or fixed-term contracts and on a réels tax regime. Micro-enterprises are excluded, as are firms involved in banking, finance, insurance, property management or rental, and maritime fishing activities.
Read more: Explainer: France’s ZRR schemes and how they benefit rural communities
ZRRs and rural depopulation
The ZRRs have a long history – they were introduced in 1995, when the topic of rural depopulation was debated at a political level.
According to the nature of your business and the number of people you employ, putting your business in a ZFF commune could allow you temporary exemption from paying taxes on profits if you are subject to impôt sur les sociétés, or impôt sur le revenu related to the business.
The contribution foncière des entreprises (CFE) and the contribution sur la valeur ajoutée des entreprises (CVAE), both local government taxes levied by the regional council, could also be exempt for a time.
Another temporary exemption can apply to the taxe foncière sur propriétés baties, and even taxe d’habitation for second homes – although details of how this might work are lacking.
Read more: Is taxe d’habitation required for flats let in French farmhouse?
There can also be a temporary exemption from Urssaf and other payroll contributions.
Officially the new FRR rules and regulations are already in place, but the finance ministry has not yet published details, simply saying in February that the 2025 budget maintained the system in place in 2024.
The ministry also states that if you are in a zone classified as a Bassin d’emploi à rédynamiser you can continue to benefit from the same exemptions listed in the ZRR rules. Other zones which can benefit from the exemptions are quartiers prioritaires de la politique de la ville (QPV), and the zone franche urbaine-territoire entrepreneur (ZFU-TE), both of which are aimed at deprived areas of towns.
Anyone wishing to find out more about the schemes should see a business tax inspector their a tax office near them.
These tend to be found in larger towns and not in rural communes where the staff who help people complete their annual income tax forms may be reluctant to deal with business tax affairs.
A finance ministry page detailing the schemes can be found here.
