France Preserves Overseas LODEOM Tax Exemptions in 2027 Budget

Minister of Overseas France Naïma Moutchou announced that the social‑security charge exemptions under the LODEOM scheme and the fiscal aid regime for productive investment (RAFIP) will be retained in the 2027 finance bill. The decision aims to give certainty to businesses in the overseas territories and keep two key levers for employment and investment. An evaluation mission led by Army Inspector General Philippe Leyssenne and Finance Inspector General Gilles Lara‑Adelaide proposed simplifications and efficiency improvements, with follow‑up work scheduled for the autumn.

The entrepreneurs’ federation in La Réunion welcomed the announcement, stressing that the stability of these fiscal tools is essential for local competitiveness amid rising costs and recruitment difficulties. The group urged the government to embed future reforms in a comprehensive, co‑constructed strategy for the French overseas, referring to its “Boussole stratégique” roadmap with ten priority proposals. The LODEOM regime already applies in Mayotte since July 2026, and discussions on its strengthening will continue.