Industrial Girardin

The Girardin industrial scheme, created by the law of 21 July 2003, aims to stimulate private investment in overseas territories. By offsetting the additional costs associated with geographical remoteness, it promotes local economic growth and job creation.

It allows French tax residents to benefit from an immediate tax reduction by financing productive equipment operated by overseas companies.

1. Principle of the Girardin industrial scheme

• The investor participates in the financing of industrial, agricultural, craft or commercial equipment.

• This equipment is then leased to a local company for a minimum period of 5 years.

• In return, the investor benefits from a one-off tax reduction in the year following their investment.

  👉 Example: an individual who invests €10,000 in a Girardin transaction can benefit from a tax reduction greater than their contribution, thanks to the tax exemption mechanism.

  Certain transactions exceeding €250,000 require prior tax approval.

2. Advantages

✅ Immediate tax benefit: one-off tax reduction, starting in the year following the investment.

✅ Positive economic impact: direct support for the development of overseas territories.

✅ Diversity of projects financed: agriculture, industry, tourism, crafts, transport, etc.

3. Conditions and constraints

• The financed equipment must be used for a minimum of 5 years.

• The investment must be made in one of the eligible territories:

  Guadeloupe, Martinique, Réunion, French Guiana, Mayotte, French Polynesia, New Caledonia, Saint Pierre and Miquelon, Saint Barthélemy, Saint Martin, Wallis and Futuna, French Southern and Antarctic Lands.

• The investor must be a French tax resident.

• The tax reduction is capped (specific Girardin scheme, then overall cap on tax breaks).

  ⚠️ Like any investment, Girardin carries a risk: if the beneficiary company does not comply with the operating conditions, the tax benefit may be called into question.

4. Girardin industriel vs autres volets de la loi Girardin

• Girardin housing: tax reduction for the purchase or construction of new housing (or renovation of old housing) intended as a primary residence in overseas territories.

• Girardin social: tax reduction for investments in social housing intended for rental.

• Girardin industrial: concerns productive investments in local businesses (industrial, commercial, craft, agricultural sectors).

5. Why choose the industrial Girardin scheme?

This scheme is mainly aimed at taxpayers in high tax brackets (high marginal tax rate) who wish to:

• reduce their tax bill significantly and quickly,

• diversify their tax exemption strategy,

• actively participate in the economic and social development of overseas territories.

✅ In summary:

The Girardin industrial scheme is a powerful tax exemption tool, offering immediate tax reductions in return for productive investment in overseas territories. When properly managed, it is an effective wealth management strategy for optimising your tax situation while supporting the local economy...

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