Urban Development Zones (BUD) — Property Tax Exemption
Stated purpose: Exempt from property tax 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. Area indicated: national aid.
Urban areas to revitalise (BUD) – property tax exemption concerns local taxation and business location. The catalogue states that the scheme aims to exempt from property tax 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 criteria and arrangements below come from the catalogue information and must be confirmed with the funder before any decision.
Funded by Ministère de l’Economie, des Finances et de la Souveraineté Industrielle, Energétique et Numérique
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Who can apply
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. Area indicated: national aid; the company’s location and status must be checked before concluding on eligibility.
Eligibility conditions
The detailed conditions are not recorded in the catalogue. This summary is not an eligibility decision; check the text in force, exclusions, combination rules and any local decisions.
What the scheme covers
Operations or costs mentioned: Creation of businesses carrying out a genuinely new activity. The exemption covers buildings located in a BUD and attached to establishments meeting the conditions for the CFE exemption. Businesses created as part of a takeover, concentration, restructuring or extension of a pre-existing activity are not eligible. Ask for written confirmation of the eligible items and of the date from which costs can be committed.
Amount and funding terms
Amount or advantage indicated in the catalogue: 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 property tax exemption for 7 years from the year after the establishment is created; at the end of this 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. Optional exemption: a full exemption applied by decision of the municipalities or EPCIs, followed by the same 3-year tapering allowance on half of the net taxable base. Combination with other property tax exemptions: this exemption cannot be combined with certain other property tax exemptions reserved for certain zones (for example priority urban neighbourhoods, employment areas to be revitalised, etc.). 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. Do not automatically treat a tax exemption, support or grant as cash aid.
How to apply
Start by consulting the source indicated: https://www.service-public.fr/professionnels-entreprises/vosdroits/F34799. Have the reviewing body confirm the form to use, supporting documents, combination rules and timetable. Before committing costs or changing your tax situation, check the rules that apply to your case.
Timeline
End date recorded in the catalogue: 31 December 2026. It must be confirmed on the official source before taking any steps; it does not on its own prove that the scheme is open.
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 purpose of this scheme?
Exempt from property tax 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.
Which location or tax situation should be checked?
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. Check the zoning, the creation period and, where applicable, the relevant local decision.
What amount or advantage is provided?
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 property tax exemption for 7 years from the year after the establishment is created; at the end of this 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. Optional exemption: a full exemption applied by decision of the municipalities or EPCIs, followed by the same 3-year tapering allowance on half of the net taxable base. Combination with other property tax exemptions: this exemption cannot be combined with certain other property tax exemptions reserved for certain zones (for example priority urban neighbourhoods, employment areas to be revitalised, etc.). 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. Do not automatically treat a tax exemption, support or grant as cash aid.
Is the scheme currently open, and how do I apply?
End date recorded in the catalogue: 31 December 2026. It must be confirmed on the official source before taking any steps; it does not on its own prove that the scheme is open. Confirm the procedure and the opening with the funder before relying on its availability.
Official source
No official URL is available in our data for this grant.
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