Girardin Industriel 2026: Is It a Good Tax Relief Deal in France?

Updated on 29 July 2026

Girardin industriel (a French tax-relief scheme under article 199 undecies B of the French Tax Code, whereby investors fund industrial equipment leased to small businesses in France’s overseas territories in exchange for a one-off income-tax reduction) is a little-known scheme in France that can cut your income tax by up to €18,000. Here is a review of its features and risks.

Key takeaways

• Girardin industriel is a non-recoverable investment that grants a one-off income-tax reduction, paid the year after you subscribe.
• The scheme has been extended until 31 December 2029 by the 2024 Finance Act, for all of France’s overseas departments and territories (DOM-COM).
• The reduction counts against a tax-loophole cap raised to €18,000 for overseas investments, versus €10,000 in the general case.
• The investor’s net gain often reaches 10% to 14% of the amount invested, with no guarantee and subject to strict legal conditions.
• The main risks are tax-related (the reduction being challenged) and financial (liability as a partner in the SNC).

What is Girardin industriel?

The scheme was created following the Girardin industriel law. It is mainly marketed by Inter Invest, the pioneer of Girardin industriel, through its G3F offer. To date, more than 25,000 French taxpayers have used it. It grants a reduction in income tax (IR) in exchange for an investment in small and medium-sized businesses in the agricultural, industrial or craft sectors located in France’s overseas departments and territories, DOM-COM (often incorrectly called DOM-TOM).

Businesses in the DOM-COM suffer from being far from mainland France, which creates significant extra costs and makes them less competitive. This concerns in particular Mayotte, Guadeloupe, Martinique, Réunion, Saint-Martin, New Caledonia and Saint-Barthélemy.

What does the Girardin industriel law say?

The scheme was passed under the Girardin law and codified in article 199 undecies B of the French General Tax Code. This law was passed to encourage the economic development of the DOM-COM territories as well as property investment among taxpayers.

It was initially due to run until 2007 but was regularly extended. The 2024 Finance Act extended the scheme until 31 December 2029, for all of the DOM-COM.

How Girardin industriel (G3F) works

Girardin industriel is a non-recoverable investment in a company. This company is a holding vehicle set up as a general partnership (société en nom collectif, SNC) that exists solely for the operation. Note that the SNC is the only holding-vehicle form authorised for a Girardin industriel investment made de plein droit (the automatic route, without prior government approval).

This company, in which the investor becomes a shareholder, uses funds invested by several French taxpayers to buy industrial and agricultural equipment. This equipment is leased to small and medium-sized businesses in France’s overseas territories for five years. Once that period ends, the company is put into liquidation and the equipment is sold to the tenants for a symbolic €1.

In exchange for this non-recoverable investment, investors receive an income-tax reduction of 10% to 14% the following year. To find out the exact amount of Girardin tax relief you may be entitled to, we recommend using a Girardin industriel simulator. The Girardin scheme works differently from most, since it is a “one shot” operation. This means the tax reduction is not spread over several years, only over the year following the investment.

Girardin Industriel Example

To better understand how it works, let’s take the example of someone whose income tax comes to €5,000 for 2026. They decide to do a Girardin industriel to reduce their tax bill. Here are the steps of the operation:

• 2026: by subscribing as soon as the subscription period opens, the investor targets a tax reduction of around 114% of the amount invested.
• To wipe out their €5,000 tax bill, they invest around €4,385 (calculation: €5,000 / 1.14).
• A one-off investment in a project eligible under the Girardin industriel law, with the reduction applied against tax due for 2026.
• 2027: the tax reduction is factored into the calculation of income tax for 2026, wiping out the tax due.
• 2031: the holding company is dissolved and liquidated (five years after start-up), and the operation officially ends.

Understanding Girardin industriel tax relief

Girardin Industriel Cap

The Girardin industriel cap is higher than the general tax-loophole cap set by article 200-0 A of the French General Tax Code. The standard cap stands at €10,000 per household. However, for investments made overseas, this cap has been raised to €18,000 under article 199 undecies B of the CGI, an increase of €8,000. Note that only a fraction of the reduction (44% de plein droit, 34% avec agrément) counts against this €18,000 cap, so the actual tax reduction can reach €40,909 (de plein droit) or €52,941 (avec agrément).

Declaring a Girardin industriel investment

To benefit from Girardin industriel tax relief, you must declare the amounts invested on your tax return the year after the investment. Here is how to proceed:

• Use form 2042 IOM, dedicated to overseas investments.
• Enter the amount of the tax reduction in box HFS or HFT depending on the type of operation (with or without prior approval)

• Enter the total amount of the eligible investment in the “calculation worksheet”

• Since the declaration is not straightforward, the company behind the operation (for example, Inter Invest for G3F) will provide a Girardin industriel tax filing guide to help you fill in the required boxes.

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Why choose Girardin industriel?

Before entering into a Girardin industriel in 2026, it is important to understand the operation in detail. We review the advantages and drawbacks of this Girardin scheme.

The advantages of Girardin industriel

The main advantage of the G3F mechanism is that it grants the taxpayer a tax reduction, subject to meeting the legal conditions. Indeed, the operation can return up to around 114% of the amount invested, for a net gain that can reach 14% of the amount committed. This gain is not guaranteed, and the investment is non-recoverable.

All the legal complexity of the operation is handled by Inter Invest, the leading company in Girardin Industriel. It carries out the structuring needed so that you can benefit from your tax reduction. Under Girardin de plein droit, the investor keeps 44% of the tax benefit: the remaining 56% is passed back to the overseas business as reduced rent over five years (the legal minimum rebate rate). The operator’s commission for structuring the operation is separate from this rebate.

The drawbacks of Girardin Industriel

A Girardin Industriel investment carries certain risks worth examining. Before committing, it can be worth discussing it with a wealth management advisor.

Girardin industriel is just one option among tax-relief strategies: you can also compare the advantages of rental property investment, forestry investment, or the tax advantages of the PER.

The first drawback is the need to invest a large sum in year N and only get a return in year N+1. This requires having a certain amount of financial flexibility.

The real risk of Girardin industriel lies in meeting the strict conditions set by law. If some of these conditions are not met, the tax authorities can challenge your tax reduction. The risks fall into two categories: financial risks and tax risks.

There are three tax risks:

• Operator eligibility: only companies with a NAF code compatible with the scheme can use G3F financing. Accepted sectors include sea fishing, tourism, and pleasure boating, among others. These companies must also be up to date with their obligations to the tax authorities, in particular the payment of taxes.
• Use of the financed assets: the financed assets must be operated without interruption for at least 5 years by the small or medium-sized business. If the tenant of the assets goes bankrupt, the tax relief is called into question.
• Rebate of the tax benefit: the Girardin industriel operation must respect the tax rebate rate set at a minimum of 56% of the total amount.

The financial risks stem from the fact that, by subscribing to a G3F, the investor becomes a shareholder in a company.

• Debts: as a result, the investor becomes liable for the company’s debts, without limit. In practice, the risk applies only to half of the financed assets, since the other half of the Girardin industriel operation is financed by a bank. Concretely, if the equipment’s tenant fails to pay the rent, the bank could require the investor to repay the unpaid rent.
• Lack of insurance: if the equipment’s tenant has not renewed the insurance on an asset financed by the holding company, the investor would be exposed to significant damages in the event of accidents (particularly bodily injury).

To limit these risks, companies offering Girardin industriel, such as Inter Invest, provide a financial and tax completion guarantee (or G3F). It includes the following insurance policies:

• Professional liability insurance covering the investor against structuring errors, up to €20 million in tax reductions
• “Umbrella” liability insurance of €100 million covering investors against the lack of insurance and damage caused by the equipment.

• G3F Financial Coverage of €10 million for other tax and financial risks, the equivalent of a guarantee fund.
• Legal Assistance in the event of a tax audit or reassessment. Inter Invest prepares your responses to the tax authorities and supports you for the 8 years following subscription (3 years more than the operation’s actual duration).

Points to watch on Girardin Industriel (G3F): choose your operator carefully before investing. In addition, above €250,000 per programme, the project must receive prior approval from the Ministry of the Economy and Finance; below this amount, the operation falls under the de plein droit route and is exempt from this requirement. When approval is required, ask to see it before investing.

How to invest in the Girardin industriel scheme?

The guarantees offered by operators help to manage some of the risks of the structure, without eliminating them entirely. A personalised review with an authorised adviser is recommended. A net-worth tracking tool like Finary can then be used to monitor this investment alongside your other assets once the operation is complete.

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Frequently asked questions

How does the Girardin industriel scheme work?

Girardin industriel is a non-recoverable investment in a holding company (SNC) that buys equipment leased for five years to small and medium-sized businesses in the DOM-COM. In exchange, the investor receives a tax reduction paid in one go the following year, for a net gain that can reach around 14%.

How to invest in a Girardin industriel?

Programmes are marketed by specialised companies, including Inter Invest, the sector’s pioneer with its guaranteed offer. Since the legal and tax structuring is complex, it is recommended to choose a solid operator and, where relevant, to be assisted by an authorised adviser before subscribing.

How to declare a Girardin industriel?

You must use form 2042 IOM, dedicated to overseas investments, then enter the amount of the reduction in box HFS or HFT depending on whether the operation is de plein droit or avec agrément. The operator provides help filling in the relevant boxes.

What is the maximum tax reduction with Girardin industriel?

The reduction counts against a tax-loophole cap raised to €18,000 for overseas investments. Since only a fraction of the reduction counts against this cap, the actual tax reduction can reach €40,909 de plein droit and €52,941 avec agrément.

Is Girardin industriel risky?

Yes. The risks are tax-related (the reduction can be challenged if the legal conditions are not met) and financial (the investor, as a partner in the SNC, is liable for the company’s debts). It is a non-recoverable investment, with no guarantee of getting back the capital committed.

Sources

BOFiP, BOI-IR-RICI-80-20-10: tax reduction for overseas investments, article 199 undecies B of the CGI

BOFiP, BOI-IR-RICI-80-20-20: cap on overseas tax reductions

impots.gouv.fr: reduction for new productive investments overseas

Inter Invest: extension of the Girardin scheme until 2029