France's Girardin tax incentive and other investment vehicles explained

The Girardin law allows French taxpayers to obtain tax credits that can exceed the amount of capital invested by directing funds to industrial projects or social housing in overseas territories. Investors transfer money to a portage company that acquires equipment or builds dwellings, which are then leased to local operators. The tax reduction is granted in a single fiscal year, while the capital is generally considered at risk and is not recovered as a dividend. The scheme is divided into two variants – industrial, which finances new productive assets, and social, which funds construction or renovation of social housing – each with specific obligations and rates.

Separate French tax‑advantaged savings options include life insurance contracts, the PEA (Plan d’Épargne en Actions), and the PER (Plan d’Épargne Retraite). Life insurance offers flexible investment choices and inheritance benefits; the PEA provides exemption from income tax on capital gains after a five‑year holding period for European equities; and the PER grants immediate tax deductions on contributions aimed at retirement savings. Guidance highlights the importance of understanding each vehicle’s rules, limits, and potential pitfalls when combining them to optimise tax efficiency.