Urban Development Zones (BUD) — Business Land Contribution (CFE) Exemption
Purpose listed: Exempt from the business property tax (CFE) businesses set up in one of the urban areas to revitalise (BUD), for businesses created between 1 January 2018 and 31 December 2026; the scheme extends to neighbouring municipalities. Beneficiaries indicated in the catalogue: businesses subject to income tax and located in municipalities belonging to a group of contiguous inter-municipal bodies (EPCI) with their own tax powers, totalling at least one million inhabitants, where population density is above the national average, median disposable income per consumption unit is below the national median, the unemployment rate is above the national rate, and 70% of each EPCI’s population lives in municipalities meeting these three criteria. Amount or form of aid indicated: half of the exemption applies automatically and the other half by decision of the municipalities or EPCIs with their own tax powers. Automatic exemption: a full exemption on half of the net tax base of the establishments concerned, levied for each municipality or EPCI, for 7 years from the year after the establishment is created; at the end of this period, half of the base is subject to a tapering allowance; check the details in the official texts.
The “Urban areas to revitalise (BUD) – exemption from the business property tax (CFE)” scheme aims to exempt from the business property tax (cotisation foncière des entreprises, CFE) businesses set up in one of the urban areas to revitalise (BUD). The exemption applies to businesses created between 1 January 2018 and 31 December 2026, and extends to neighbouring municipalities. The catalogue information gives initial indications, but it is not enough on its own to confirm that the scheme is currently available or that all the conditions are up to date. Before incurring costs or applying, check the applicable rules with the competent body.
Funded by Ministère de l’Economie, des Finances et de la Souveraineté Industrielle, Energétique et Numérique
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Who can apply
The catalogue mentions: businesses subject to income tax and located in municipalities belonging to a group of contiguous inter-municipal bodies (EPCI) with their own tax powers, totalling at least one million inhabitants, where population density is above the national average, median disposable income per consumption unit is below the national median, the unemployment rate is above the national rate, and 70% of each EPCI’s population lives in municipalities meeting these three criteria.
Eligibility conditions
As the eligibility conditions are not sufficiently documented, ask the operator for the rules and the list of criteria.
What the scheme covers
Operations or costs mentioned: creation of businesses carrying out a genuinely new activity. Businesses created as part of a takeover, concentration, restructuring or extension of a pre-existing activity are not eligible.
Amount and funding terms
The catalogue indicates: half of the exemption applies automatically and the other half by decision of the municipalities or EPCIs with their own tax powers. Automatic exemption: a full exemption on half of the net tax base of the establishments concerned, levied for each municipality or EPCI, for 7 years from the year after the establishment is created; at the end of this period, half of the base is subject to a tapering allowance: half of the net taxable base of the establishments concerned is subject to a tapering allowance for 3 years — 75% in the first year, 50% in the second and 25% in the third. Establishments benefiting from the automatic exemption can also benefit from an exemption from CVAE (business value-added contribution), on the same terms as the CFE above, applying to the value added for the various local authorities and, where relevant, to the value added for the EPCI where the establishment is located. This CFE exemption cannot be combined with a CFE exemption reserved for certain activities (for example young innovative companies, record shops, bookshops, etc.). Optional exemption: this full exemption applies on a decision by communes or EPCIs with their own tax regime. At the end of this exemption period, half of the net taxable base of the establishments concerned is subject to a tapering allowance for 3 years — 75% in the first year, 50% in the second and 25% in the third. The CVAE exemption may also apply on the same terms, for the share taxed for the commune or EPCI. This CFE exemption cannot be combined with a CFE exemption reserved for certain zones (for example priority urban neighbourhoods, employment areas to be revitalised, etc.), except for defence restructuring zones (ZRD). The scheme is granted in compliance with the European de minimis block exemption regime, which limits the total public aid granted per business to €200,000 over 3 consecutive financial years.
How to apply
1. Identify the reviewing body and obtain the current version of the rules. 2. Confirm the eligibility of the company and the project. 3. Have the costs and eligibility date validated before signing quotes or starting. 4. Prepare the supporting documents requested by the operator. 5. Keep written proof of the conditions applicable at the date of application.
Timeline
The exemption applies to businesses created between 1 January 2018 and 31 December 2026. Check the conditions in the official texts and any local decisions with the tax office.
Key facts
- Funder
- Ministère de l’Economie, des Finances et de la Souveraineté Industrielle, Energétique et Numérique
- Type of funding
- Tax exemption
- Status
- Open
- Maximum amount
- €200,000
- Automatically extracted — check the official source
- Closes
- 31 December 2026
- Geographic scope
- All of France
Frequently asked questions
What is the “Urban areas to revitalise (BUD) – exemption from the business property tax (CFE)” scheme for?
The catalogue presents it as aiming to exempt from the business property tax (CFE) businesses set up in one of the urban areas to revitalise (BUD), for businesses created between 1 January 2018 and 31 December 2026; the scheme extends to neighbouring municipalities. The exact scope must be confirmed in the official documentation in force.
Who can use “Urban areas to revitalise (BUD) – exemption from the business property tax (CFE)”?
The catalogue mentions: businesses subject to income tax and located in municipalities belonging to a group of contiguous inter-municipal bodies (EPCI) with their own tax powers, totalling at least one million inhabitants, where population density is above the national average, median disposable income per consumption unit is below the national median, the unemployment rate is above the national rate, and 70% of each EPCI’s population lives in municipalities meeting these three criteria. Eligibility also depends on the company’s area, size, sector and situation under the current rules.
How much can be obtained with “Urban areas to revitalise (BUD) – exemption from the business property tax (CFE)”?
Half of the exemption applies automatically and half by local decision. The automatic part is a full exemption on half of the net tax base for 7 years from the year after the establishment is created, followed by a tapering allowance. The amount granted, basis and caps must be validated with the reviewing body.
Is the “Urban areas to revitalise (BUD) – exemption from the business property tax (CFE)” scheme still available?
The current status and availability of funds are not confirmed by this page. Contact the operator and check the official dates before treating the scheme as available.
Official source
No official URL is available in our data for this grant.
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