What is the industrial Girardin and how does it work?

The industrial Girardin is a tax exemption scheme created by the Girardin law to support the economic development of the overseas departments and territories (Guadeloupe, Martinique, Réunion, French Guiana, Mayotte, New Caledonia, French Polynesia...). Its objective is simple: to encourage metropolitan taxpayers to finance the purchase of industrial equipment for local businesses, in exchange for an immediate tax reduction.

👉 Concretely, the investor brings a sum of money via a holding company (often a SNC) which buys the equipment and rents it out to an overseas company. In return, the investor benefits from a tax reduction greater than his contribution.

Example: you invest 10,000 € in an industrial Girardin operation. The following year, you get a tax reduction of €11,500. Your net gain is therefore €1,500 without recovering the capital.

The principle of the Girardin is unique: it is an 'one-shot' investment, without recovery of capital but with an immediate tax return.