European Commission proposes extending French overseas tax derogation to 2030

The European Commission has proposed extending the ‘octroi de mer’ tax derogation regime for French overseas territories until December 31, 2030. The proposal, requested by France, aims to provide legal certainty for economic operators and support the competitiveness of locally produced goods.

In addition to the three-year extension, the proposal includes adding twenty-two products to the list of items eligible for tax advantages to favor local production, as well as correcting five existing codes. The Commission noted that these additions should help diversify and develop the economies of these regions.

In response to the proposal, the political group Demain la Réunion welcomed the extension, noting it would help local authorities maintain investment capacities. However, the group called for a strategic overhaul to transform the tax into a tool for economic sovereignty and territorial justice, advocating for a shift from a rent-seeking logic toward endogenous development.