Creation of “Rural France Revitalization” Zones: what are the advantages?

As of July 1st, 2024, the rural revitalization zones (ZRR) and the rural retail revitalization zones(1) (Zorcomir) will be replaced by a new single scheme called “Rural France Revitalization Zones(2)” (ZFRR) under which the zoning will be recast, and the tax and social exemptions harmonized.

In practice: 17,700 municipalities will be classified as ZFRR, including 13 departments in their entirety.

Thus, companies created or taken over between July 1st, 2024 and December 31st, 2029 in any of these zones will be able, under certain conditions, to benefit from a temporary exemption from tax on their profits (income tax or corporate tax).

Note: To benefit from the exemption, the company must be subject to actual tax regime for its profits, employ fewer than 11 employees and carry out an industrial, commercial, craft or liberal activity. And its head office, as well as, in principle, all of its activity and operating resources must be located in a ZFRR. However, a company carrying out a sedentary activity partly outside the zone will be able to benefit from a fraction of the exemptions if it achieves no more than 25% of its turnover outside the zone.

In addition, an exemption from local taxes (business property tax, property tax on built properties) may apply to these companies if local authorities so decide.

Note: Tax exemptions are total for 5 years and degressive for the following 3 years (75% in the 6th year, 50% in the 7th year and 25% in the 8th year).

Employers located in ZFRR will, for the first fifty employees hired, be exempted from paying employers’ social security contributions (sickness, maternity, disability, old age, death) and family allowances currently granted to companies located in a ZRR. It should be remembered that this exemption applies for 12 months from the date of hiring.

What is a ZFRR “plus”?

Some municipalities in ZFRR are the subject of more targeted and reinforced support by being classified as ZFRR “plus.” In these areas, tax exemptions apply to SMEs (with fewer than 250 employees, annual turnover of less than €50 million or annual balance sheet total not exceeding €43 million) regardless of their tax regime. And beware, in the event of resumption of activity, the exemption is also reserved for companies with less than 11 employees.

(1) Zones de Revitalisation des Commerces en Milieu Rural (ZORCOMIR)

(2) Zones « France ruralités revitalisation » (ZFRR)