Sofica: Film Investment Tax Relief in France

Updated on 30 July 2026

Investing in a Sofica (a French tax-relief scheme that finances cinema and audiovisual production) can reduce your income tax in France by up to 48% of the amount invested, in exchange for a risky, illiquid holding locked in for at least 5 years to finance French films.

Key takeaways

• The Sofica tax reduction rate is 30%, 36% or 48% of the amount invested, depending on the commitments made by the company.
• The investment is capped at €18,000 per year and 25% of total net income, outside the general €10,000 tax-loophole cap.
• The average return, including the tax benefit, does not exceed 2% per year according to industry analyses.
• 12 Sofica were approved by the CNC in 2025 to invest in films in 2026, for a total of €73.07 million raised.
• The scheme is legally extended through 31 December 2026; a future finance law will need to decide on its continuation beyond that date.

Why invest in a Sofica?

Investing in a Sofica lets you take part in financing French cinema and audiovisual production, in exchange for tax relief of up to 48% of the amount invested. SOFICA (Sociétés pour le Financement de l'Industrie Cinématographique et Audiovisuelle) were created in 1985 at the initiative of film industry professionals. They are public limited companies whose capital is approved each year by the minister for the Economy and Finance, on the advice of the Centre national du cinéma et de l'image animée (CNC), and which raise funds from private investors to finance audiovisual production.

There are many reasons to invest in a Sofica:

• The main incentive is the tax reduction itself, which can be substantial: up to €8,640 at the 48% rate (BOFiP). But be careful: investing in a film does not guarantee a high return, since it depends on the film's commercial success. According to Scala Patrimoine, the average internal rate of return of Sofica has not exceeded 2% per year, tax benefit included, since they were created.
• The ability to carry forward capital losses against other capital gains on securities for 10 years.
• A higher tax-loophole cap of €18,000, as an exception to the general €10,000 limit.
• An investment in cinema adds diversification alongside other tax-relief products.
• Exposure to a sector in transition, with the growth of online media and streaming platforms.
• A way to support creation: investing in a Sofica directly finances independent French cinema, at a time of growing competition from international streaming platforms. It is also a way to support the arts while lowering your tax bill, sometimes with the chance to attend premieres of the films financed. Other tax-relief schemes work on comparable mechanisms, such as forestry investment or the Girardin industriel scheme.

What are the conditions for investing in a Sofica?

Investing in a Sofica means meeting several conditions: annual approval issued by the minister for the Economy and Finance, a limited lifespan for the company, a list of authorised Sofica set each year by the CNC, and holding the units for at least 5 years.

They have a limited lifespan

Sofica are public limited companies whose main activity is financing the film industry, with a maximum lifespan of 10 years. To raise funds from private investors, a Sofica must obtain approval each year from the minister for the Economy and Finance (issued via the Direction générale des Finances publiques), on the advice of the CNC. The maximum amount each Sofica is authorised to raise is set every year by Bercy with the agreement of the CNC (Centre national du cinéma et de l'image animée).

A Sofica must direct at least 50% of its investments toward independent productions. The investments are not backed: no buyback at a price fixed in advance has been agreed.

The list of Sofica is limited

The number of approved Sofica is set each year by the CNC (12 in 2022, for reference). The subscription period opens in mid-September and ends on 31 December. If a Sofica meets the conditions for the 48% tax reduction, its fundraising target is usually reached quickly. After that, it is no longer possible to invest.

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How do you invest in a film?

To invest in a film through a Sofica, you must be a French tax resident, subscribe a minimum of €5,000, hold your units for at least 5 years, and stay within the €18,000 annual cap. This investment also comes with other conditions:

• Only French residents can benefit from a Sofica's tax reduction.
• To subscribe to Sofica shares, a minimum investment of €5,000 is generally required, along with entry fees of around 5%.
• Annual management fees of around 1.5% to 3% are charged.
• Units must be subscribed in registered form and in cash, and can be purchased through a bank or a wealth adviser.
• The Sofica investment amount cannot exceed €18,000 and is capped at 25% of total net income. There is no film tax credit that can be carried forward to later years, so you need to size your subscription to the Sofica amount you actually want.
• Units must be held for at least 5 years to benefit from the tax advantage.
• A Sofica's tax reduction cannot be combined with the one obtained by subscribing to SME share capital.

Sofica taxation: what are the benefits?

Sofica taxation offers an income tax reduction of 30%, 36% or 48% of the amount invested, depending on the commitments made by the company, plus the option to carry forward capital losses over the following 10 years.

A substantial tax reduction

The tax reduction ranges from 30% to 48% of the capital invested, depending on the commitments made by the Sofica. It is a one-off tax break that applies in the year of subscription.

• A 30% reduction rate.
  The maximum reduction is €5,400, since the Sofica investment is capped at €18,000. If your income tax is lower than the reduction, the excess benefit is lost. Since this is not a Sofica tax credit, the amount is neither refunded nor carried forward.
• A higher rate for a bigger tax reduction.
  If at least 10% of the Sofica's investments are made by 31 December of the year following subscription, the rate is 36%. The maximum tax gain is €6,480.
• A higher rate of 48%
  To meet the conditions for the 48% rate, the Sofica must make 10% of its investments, within the year following subscription, in documentary series or in exporting French films abroad.

Carrying forward capital losses

Any capital loss is treated under a specific tax regime. If a Sofica investment generates a capital loss, tax rules allow it to be deducted from capital gains realised on other securities, such as stock market investments or a securities account. It can be carried forward over the following 10 years.

Which Sofica are approved by the CNC?

For the 2025 campaign (fundraising open from 18 September to 31 December 2025, for investments made in 2026), the CNC approved 12 Sofica, for a total of €73.07 million raised, close to the full amount authorised. This list, set each year by the minister for the Economy and Finance on the advice of the CNC, may change from one campaign to the next: check the CNC website for the most recent version. The Sofica scheme is legally extended through 31 December 2026; a future finance law will need to decide on its continuation beyond that date.

For the 2025 campaign, the smallest amount is Imagellium 2025's, with €700,000 authorised by Bercy, while Cinémage 21 has the largest, at €12.45 million.

Sofica: a tax-relief tool first, not a return-driven investment

Investing in cinema remains a risky asset whose main appeal is the tax relief. It is a long-term investment with a low average return, like the FCPR, another unlisted investment vehicle, a Sofica should be considered as part of broader wealth diversification, with the guidance of an adviser.

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Frequently asked questions

What is a Sofica?

A Sofica (Société pour le Financement de l'Industrie Cinématographique et Audiovisuelle) is a public limited company that raises funds from individuals to finance the production of French films and series, in exchange for an income tax reduction.

What is the Sofica tax reduction rate in 2026?

The Sofica tax reduction is 30%, 36% or 48% of the amount invested, depending on the commitments made by the company, within a cap of €18,000 per year and 25% of total net income, giving a maximum reduction of €8,640 at the 48% rate.

How long do you need to hold your Sofica units?

Sofica units must be held at least until 31 December of the fifth year following subscription, or you lose the tax advantage. In practice, the actual resale often happens between the 6th and 10th year.

Which Sofica are approved for the 2025 to 2026 campaign?

The CNC approved 12 Sofica for the 2025 campaign (2026 investments), for a total of €73.07 million raised. This list changes every year: check the CNC website for the most recent version.

Is a Sofica a profitable investment?

No: excluding the tax benefit, Sofica returns are generally low, even negative. Including the tax benefit, the average internal rate of return does not exceed 2% per year. A Sofica remains first and foremost a tax-relief tool, not a return-driven investment.

Sources

BOFiP, BOI-IR-RICI-180-20: Sofica tax reduction, rates and caps

Légifrance, French General Tax Code, Annex III: approval of Sofica share capital

CNC, list of Sofica approved in 2025 for 2026 investments

CNC, Sofica: €73M raised to support independent film and series production

Scala Patrimoine, Sofica: reducing your taxes while supporting French cinema

Finary, tax relief in 2026: how to optimise your wealth and reduce your taxes