Zones France ruralités revitalization (ZFRR) and Zones France ruralités revitalization (ZFRR+): tax exemptions

Verified 17 July 2025 - Directorate of Legal and Administrative Information (Prime Minister)

Zoning France ruralités revitalization (ZFRR) has been implemented since the 1er  July 2024 . This classification allows to benefit from several tax advantages. Most of the municipalities previously classified as rural revitalization zones (RRAs) have integrated the new ZFRR zoning. An enhanced “ZFRR+” level concerns the most vulnerable territories.

A simulator is used to check the classification of a municipality in ZFRR or ZFRR+:

Check whether a municipality is located in a ZFRR zone, is a “beneficiary” of the ZFRR zoning or is located in a ZFRR + zone

ZFRR

The zoning called “France ruralités revitalization” (ZFRR) concerns municipalities of less than 30,000 inhabitants located in a public establishment of intercommunal cooperation (EPCI), in a department or a pool of life. These municipalities meet criteria of population density and income.

The list of municipalities classified as ZFRR is set by a decree of 19 June 2024 (Annex 1).

Other municipalities located in the former Rural Revitalization Zones (RRAs) have been added to this list (Annex 2): they are “beneficiaries of the RRA zoning”.

All these municipalities have benefited from tax exemptions since 1er July 2024.

In order to benefit from an exemption from income tax, the company must have created or resumed in a classified area.

Creating or resuming a company in the zone

The company creations carried out between 1er July 2024 and December 31, 2029 in ZFRRs may benefit from tax exemptions on profits.

The exemption shall also apply to company recovery: this is the operation by which the effective management of an existing company is taken over with the will to maintain its activity. The take-over date corresponds to the moment when the change of direction takes place in an effective manner.

Please note

Municipalities “beneficiaries of ZFRR zoning” can benefit from the tax advantages of the ZFRR scheme until December 31, 2027.

The income tax exemption does not apply when the company is in one of the following situations:

  • Activities benefiting or having benefited, during one or more of the 5 years preceding the year of creation or takeover, other tax relief schemes : urban free zones (ZFU), Young Innovative companies (JEI), job pool to be revitalized (BER)), employment pools to be revitalized (BUD), defense restructuring zones (DRZs)etc.
  • Creation or resumption of activity following the transfer of the concentration (company combination) or restructuring of activities previously exercised in another zone ZFRR. In this case, the exemption ceases after the end of the ZFRR scheme applicable to the former activity.
  • Resumption of activity or company within the family circle. However, the first take-over operation for the benefit of the descendants of the transferor of the company may benefit from the tax exemption.
  • Takeovers or restructuring within the family circle resulting solely from a change in social form (exclusion of all forms of ‘self-absorption’). For example, transformation of a company into a limited liability company (SARL).

Location of the company in the area

In order to benefit from the exemption scheme, the company must implanted exclusively in the ZFRR zone. This means that the effective management of the company, all its activity and its means of operation, human and material, must be located in the ZFRR.

The tax exemption applies when the activity is sedentary.

However, when part of the activity is carried out out of ZFRR, it shall not exceed 25% total turnover. The exemption will then apply only to the profit resulting from the activity carried out in the ZFRR zone.

Example :

A doctor whose practice is located in the ZFRR zone but who practices one day a week in a practice outside the ZFRR zone benefits from a tax exemption in proportion to the turnover achieved in the ZFRR zone.

Companies who exercise a non-sedentary activity may also benefit from tax exemptions under certain conditions.

The share of the activity carried out outside the ZFRR zone must not exceed 25% total turnover. The exemption will then apply only to the profit resulting from the activity carried out in the ZFRR zone.

Example :

A non-sedentary activity is carried out largely among customers: this is the case of a construction company.

Activity, tax regime and actual activity of the company created or taken over

Activity exercised

The company set up or taken over in the territory of a ZFRR must carry out an activity industrial, commercial, artisanal or liberal.

Agricultural or civil activities are not covered by this exemption scheme.

Example :

The opening of a practice by a doctor, the installation of a craftsman, the opening of a franchise or a subsidiary (with fewer than 11 employees) can benefit from the tax exemption scheme of the ZFRR scheme.

Tax system

For the commercial and craft activities, the company must be subject to a actual tax regime normal or simplified results.

For the liberal activities, it shall be submitted to the controlled reporting regime.

Warning  

Companies subject to micro-fiscal regime are not eligible for the exemption from income tax in ZFRR.

Staff of the company

The company created or taken over must employ less than 11 employees.

The number of employees is calculated for each fiscal year according to the rules of the Social Security. For more details, you can consult our fact sheet on calculation of headcount.

Companies set up or taken over in France ruralités revitalization (ZFRR) zones between 1er July 2024 and December 31, 2029 benefit from a profit exemption scheme.

Warning  

Municipalities “beneficiaries of ZFRR zoning” can benefit from the tax advantages of the ZFRR scheme until December 31, 2027.

Amount and duration of the income tax exemption

The exemption from income tax is limited in time.

  • The First 5 years, the exemption is total.
  • The 6e year, profits are taxed for 25% of their amount
  • The 7e year, profits are taxed for 50% of their amount.
  • The 8e year, profits are taxed for 75% of their amount.

The exemption from income tax must respect the european de minimis aid rules. This allows tax relief provided that the total amount granted to a single company does not exceed €300,000 over a “rolling” period of 3 years.

The period must therefore include the current fiscal year, as well as the 2 previous fiscal years. Compliance with this ceiling shall be assessed at the time of granting each new de minimis aid. For each new de minimis aid granted, account must be taken of the total amount of aid de minimis granted in the previous 3 years.

Beyond this amount, the aid must be notified to the European Commission.

Procedure to benefit from the exemption

In order to benefit from the income tax exemption, it is necessary only indicate the amount of the profit on the annual statement of results.

For more details on the income statement, you can refer to the sheets dedicated to business tax (IS), or to income tax (in the case of non-commercial profits (NCB) or in case of Industrial and Commercial Benefits (BIC)).

If the company qualifies for more than one exemption scheme (for example: defense restructuring zone (DRZ), urban basins to be energized (BUD), Young Innovative companies (JEI), job pool to be revitalized (BER)etc.), it must make a choice. To opt for FRR zoning, it has 6 months following the start of activity. This choice is definitive.

The option must be notified to SIE: titleContent the location of the company's profit and loss declaration.

Who shall I contact

Deliberation of municipalities and EPCI

The municipality or theEPCI shall make a decision providing for the exemption of CFE .

FYI  

The deliberation taken by the commune or the EPCI is not systematic. This means that if the municipality or the EPCI does not make a decision, the company will not be able to benefit from an exemption from CFE.

In principle, the municipality or EPCI has until 1er October (year N) to decide on the company property tax exemption (CFE) from 1er January of the following year (N+1).

To enable companies to benefit from the CFE exemption for the year 2025, the following time limits shall apply:

  • Municipalities in the new ZFRR zoning: the municipality or the EPCI had to deliberate on the CFE exemption within 90 days of the publication of the order classifying municipalities as ZFR (published on June 20, 2024). The municipality therefore had until 18 September 2024 to decide on the CFE exemption.
  • Municipalities " beneficiaries of ZFRR zoning ”: the municipality had the opportunity to take a decision providing for the exemption of CFE until March 26, 2025.

Please note

An exemption from CFE may be granted in favor of furnished tourist accommodation and bed and breakfast by a deliberation of the municipalities and EPCI concerned.

Amount and duration of the CFE exemption

The CFE exemption applies to:

  • from the year following that of creating of the establishment
  • or from 2eyear following that of the extension of an establishment.

This exemption is limited in time.

  • The First 5 years, the exemption from CFE is total.
  • The 6e year, yearabatement is of 75% the CFE tax base.
  • The 7e year, the abatement is 50% the CFE tax base.
  • The 8e year, the abatement is 25% the CFE tax base.

The benefit of the exemption must comply with European de minimis aid rules. This allows tax relief provided that the total amount granted to a single company does not exceed €300,000 over a “rolling” period of 3 years.

The period must therefore include the current fiscal year, as well as the 2 previous fiscal years. Compliance with this ceiling shall be assessed at the time of granting each new de minimis aid. For each new de minimis aid granted, account must be taken of the total amount of aid de minimis granted in the previous 3 years.

Beyond this amount, the aid must be notified to the European Commission.

Procedure to benefit from the exemption

In case of establishment or change of operator, the company wishing to benefit from the CFE exemption must apply with the n-formo 1447-C-SD:

Initial Declaration 1447-C-SD (CFE)

In case of extension of the establishment, the exemption can be requested with the form n°1447-M-SD

Amending Declaration 1447-M-SD (CFE)

FYI  

For the following years, a declaration is to be made only in the event of a change in the conditions that allowed the exemption to be granted.

The exemption must be requested from the company Tax Office (SIE), which is responsible for each company establishment.

Who shall I contact

FYI  

For the year 2025, the company could request the CFE exemption from the tax administration until May 5, 2025.

Non-cumulation with other exemption schemes

The company may not combine the exemption from CFE with that of the priority neighborhoods of the city (QPV) or Young Innovative companies (JEI)etc.

If it fulfills the conditions to benefit from several exemption schemes, it must opt for one or other of these schemes. This option must be taken before 1er January of the year the exemption takes effect.

This option is definitive.

Deliberation of the municipality or EPCI

The exemption of Property Tax on Built Properties (TFPB) is not systematic. The municipality or theEPCI shall take a decision providing for the exemption of TFPB.

This exemption applies to immovables located in ZFRR zones and attached to an establishment that benefits from the TFPB exemption.

In principle, the municipality or EPCI has until 1er October (year N) to decide on the company property tax exemption (CFE) from 1er January of the following year (N+1).

To enable companies to benefit from the CFE exemption for the year 2025, the following time limits shall apply:

  • Municipalities in the new ZFRR zoning: the municipality or the EPCI had to deliberate on the CFE exemption within 90 days of the publication of the order classifying municipalities as ZFR (published on June 20, 2024). The municipality therefore had until 18 September 2024 to decide on the CFE exemption.
  • Municipalities " beneficiaries of ZFRR zoning ”: the municipality had the opportunity to take a decision providing for the exemption of CFE until March 26, 2025.

Please note

An exemption from TFPB may be granted in favor of hotels, tourist accommodation and guest rooms by a deliberation of the municipalities and EPCI concerned.

Amount and duration of the exemption from the TFPB

The property tax exemption applies in the same proportions and for the same period as the CFE exemption. It starts from 1er January of the year following the attachment of the immovable to an activity meeting the conditions for benefiting from the exemption.

  • The First 5 years, the exemption is total.
  • The 6e year, the abatement is 75% the taxable amount of the TFPB.
  • The 7e year, the exemption is 50% the taxable amount of the TFPB.
  • The 8e year, the exemption is 25% the taxable amount of the TFPB.

The benefit of the exemption must comply with European de minimis aid rules. This allows tax relief provided that the total amount granted to a single company does not exceed €300,000 over a “rolling” period of 3 years.

The period must therefore include the current fiscal year, as well as the 2 previous fiscal years. Compliance with this ceiling shall be assessed at the time of granting each new de minimis aid. For each new de minimis aid granted, account must be taken of the total amount of aid de minimis granted in the previous 3 years.

Beyond this amount, the aid must be notified to the European Commission.

Procedure to benefit from the exemption

The exemption applies to buildings located in ZFRR zones and attached to an establishment that meets the conditions for benefiting from the CFE exemption.

In order to benefit from this exemption, the company must declare, on a template established by the administration, the identification elements of the immovable property. This model is deposited in the property tax center of the location of the building before 1er January of the year of the exemption.

For more details, you can refer to our fact sheet on the property tax return on built properties (TFPB).

FYI  

Owners of premises located in a commune entered the new ZFRR zoning from 1er July 2024 have until 5 may 2025 to report building identifiers.

Non-cumulation with other exemption schemes

The company may not combine the exemption from TFPB with that of the priority neighborhoods of the city (QPV) , Young Innovative companies (JEI), job pools to boost (BUD)etc.

If it fulfills the conditions to benefit from several exemption schemes, it must opt for one or other of these schemes. This option must be taken before 1er January of the year the exemption takes effect.

This option is definitive.

ZFRR +

The classification in “ZFRR +” concerns rural municipalities classified in a ZFRR and members of a EPCI or a pool of life faced with particular difficulties over a period of at least 10 years.

The decree which fixes the classification of municipalities in “ZFRR +” applies from 1er January 2025.

This ranking is reviewed every 6 years.

The “FRR+” zoning is established according to a synthetic index. This index takes into account the evolution of the following parameters:

  • Average reference tax income between 2009 and 2020
  • Population between 2009 and 2020
  • Employment rate of 25-54 year olds between 2009 and 2020

In order to benefit from an exemption from income tax, the company must have been set up or taken over in the area.

Creating or resuming a company in the zone

The company creations carried out between 1er January 2025 and December 31, 2029 in the ZFRR + may benefit from tax exemptions on profits.

Exemption from income tax does not apply when the company is in one of the following situations:

  • Activities benefiting or having benefited, during one or more of the 5 years preceding the year of creation or takeover, other tax relief schemes : urban free zones (ZFU), Young Innovative companies (JEI), job pool to be revitalized (BER)), employment pools to be revitalized (BUD), defense restructuring zones (DRZs)etc.
  • Creation or resumption of activities following the transfer, concentration (company combination) or restructuring of activities previously carried out in another ZFRR area. In this case, the exemption ceases after the end of the ZFRR scheme applicable to the former activity.
  • Resumption of activity or company within the family circle. However, the first take-over operation for the benefit of the descendants of the transferor of the company may benefit from the tax exemption.
  • Takeovers or restructuring within the family circle resulting solely from a change in social form (exclusion of all forms of ‘self-absorption’). For example, transformation of a company into a limited liability company (SARL).

Location of the company in the area

When the company implants itself in ZFRR+, the criterion of “ exclusive implantation ” shall not be imposed. This means that the actual management of the company, all its activity and its operating resources, human and material, do not need to be located in the ZFRR + to benefit from the exemption.

A company that carries on an activity not sedentary may benefit from tax exemptions where the share of the activity carried out out of zone ZFRR + does not exceed 25% total turnover. The exemption will then apply only to the profit resulting from the activity carried out in the ZFRR+ zone.

Example :

A non-sedentary activity is carried out largely among customers: this is the case of a construction company.

Activity, tax regime and actual activity of the company created or taken over

Activity exercised

The company set up or taken over in the territory of a ZFRR+ must carry out an activity industrial, commercial, artisanal or liberal.

Agricultural or civil activities are not covered by this exemption scheme.

Example :

The opening of a practice by a doctor, the installation of a craftsman, the opening of a franchise or a subsidiary (with fewer than 11 employees) can benefit from the tax exemption scheme of the ZFRR+ scheme.

Tax system

The company set up or taken over in a ZFRR+ is exempt from income tax regardless of its tax system. This therefore means that the company subject to the micro-fiscal regime may benefit from the exemption from income tax.

Staff of the company

In order to benefit from the profit exemption, the company whose business is set up or taken over must fulfill certain conditions:

In case of creating, the company must be in one of the following situations:

  • Either be a micro-company (within the meaning of European regulations): i.e. employ less than 10 persons and achieve an annual turnover or a balance sheet total not exceeding 2 million €.
  • Either be an SME (within the meaning of European regulations): that is to say employ less than 250 employees, or achieve an annual turnover of less than 50 million €, a balance sheet total of less than 43 million €.

When it comes to a recovery, the company must use less than 11 employees.

Companies set up or taken over in France “plus” rural areas (ZFRR+) between the 1er January 2025 and December 31, 2029 benefit from a profit exemption scheme.

Amount and duration of the income tax exemption

The exemption from income tax is limited in time.

  • The First 5 years, the exemption is total.
  • The 6e year, profits are taxed for 25% of their amount
  • The 7e year, profits are taxed for 50% of their amount.
  • The 8e year, profits are taxed for 75% of their amount.

The exemption from income tax must respect the european de minimis aid rules. This allows tax relief provided that the total amount granted to a single company does not exceed €300,000 over a “rolling” period of 3 years.

The period must therefore include the current fiscal year, as well as the 2 previous fiscal years. Compliance with this ceiling shall be assessed at the time of granting each new de minimis aid. For each new de minimis aid granted, account must be taken of the total amount of aid de minimis granted in the previous 3 years.

Beyond this amount, the aid must be notified to the European Commission.

Procedure to benefit from the exemption

In order to benefit from the income tax exemption, it is necessary only indicate the amount of the profit on the annual statement of results.

For more details on the income statement, you can refer to the sheets dedicated to business tax (IS), or to income tax (in the case of non-commercial profits (NCB) or in case of Industrial and Commercial Benefits (BIC)).

If the company qualifies for more than one exemption scheme (for example: defense restructuring zone (DRZ), urban basins to be energized (BUD), Young Innovative companies (JEI), job pool to be revitalized (BER)etc.), it must make a choice. To opt for FRR zoning, it has 6 months following the start of activity. This choice is definitive.

The option must be notified to SIE: titleContent the location of the company's profit and loss declaration.

Who shall I contact

Deliberation of municipalities and EPCI

The municipality or theEPCI must issue a decision providing for the exemption of CFE.

The municipality or EPCI classified in ZFRR + which decides on an exemption from CFE from 1er january 2025 to take a deliberation within 90 days following the publication of the order classifying municipalities as “ZFRR +”.

Amount and duration of the CFE exemption

The exemption of CFE shall apply to:

  • from the year following that of creating of the establishment
  • or from 2eyear following that of the extension of an establishment.

This exemption is limited in time.

  • The First 5 years, the exemption from CFE is total.
  • The 6e year, yearabatement is of 75% the CFE tax base.
  • The 7e year, the abatement is 50% the CFE tax base.
  • The 8e year, the abatement is 25% the CFE tax base.

The benefit of the exemption must comply with European de minimis aid rules. This allows tax relief provided that the total amount granted to a single company does not exceed €300,000 over a “rolling” period of 3 years.

The period must therefore include the current fiscal year, as well as the 2 previous fiscal years. Compliance with this ceiling shall be assessed at the time of granting each new de minimis aid. For each new de minimis aid granted, account must be taken of the total amount of aid de minimis granted in the previous 3 years.

Beyond this amount, the aid must be notified to the European Commission.

Procedure to benefit from the exemption

In case of establishment or change of operator, the company wishing to benefit from the CFE exemption must apply with the n-formo 1447-C-SD:

Initial Declaration 1447-C-SD (CFE)

In case of extension of the establishment, the exemption can be requested with the form n°1447-M-SD

Amending Declaration 1447-M-SD (CFE)

FYI  

For the following years, a declaration is to be made only in the event of a change in the conditions that allowed the exemption to be granted.

The exemption must be requested from the company Tax Office (SIE), which is responsible for each company establishment.

Who shall I contact

Non-cumulation with other exemption schemes

The company may not combine the exemption from CFE with that of the priority neighborhoods of the city (QPV) or Young Innovative companies (JEI)etc.

If it fulfills the conditions to benefit from several exemption schemes, it must opt for one or other of these schemes. This option must be taken before 1er January of the year the exemption takes effect.

This option is definitive.

Deliberation of the municipality or EPCI

The municipality or the EPCI classified in FRR + which wants to establish an exemption from TFPB for transactions carried out from 1er january 2025 to take a deliberation within 90 days following the publication of the order classifying municipalities as ZFRR+.

FYI  

L'stopped the classification of municipalities as “ZFRR +” was published on July 10, 2025.

Amount and duration of the exemption from the TFPB

The property tax exemption applies in the same proportions and for the same period as the CFE exemption. It starts from 1er January of the year following the attachment of the immovable to an activity meeting the conditions for benefiting from the exemption.

  • The First 5 years, the exemption is total.
  • The 6e year, the abatement is 75% the taxable amount of the TFPB.
  • The 7e year, the exemption is 50% the taxable amount of the TFPB.
  • The 8e year, the exemption is 25% the taxable amount of the TFPB.

The benefit of the exemption must comply with European de minimis aid rules. This allows tax relief provided that the total amount granted to a single company does not exceed €300,000 over a “rolling” period of 3 years.

The period must therefore include the current fiscal year, as well as the 2 previous fiscal years. Compliance with this ceiling shall be assessed at the time of granting each new de minimis aid. For each new de minimis aid granted, account must be taken of the total amount of aid de minimis granted in the previous 3 years.

Beyond this amount, the aid must be notified to the European Commission.

Procedure to benefit from the exemption

The exemption applies to buildings located in ZFRR zones and attached to an establishment that meets the conditions for benefiting from the CFE exemption.

In order to benefit from this exemption, the company must declare, on a template established by the administration, the identification elements of the immovable property. This model is deposited in the property tax center of the location of the building before 1er January of the year of the exemption.

For more details on the property tax return on built properties (TFPB), you can refer to the dedicated sheet to this tax.

FYI  

Companies and property owners affected by the “ZFRR+” zoning have until 31 December 2025 to declare the goods they wish to be exempted from the taxes established in respect of 2026.

Non-cumulation with other exemption schemes

The company may not combine the exemption from TFPB with that of the priority neighborhoods of the city (QPV) , Young Innovative companies (JEI), job pools to boost (BUD)etc.

If it fulfills the conditions to benefit from several exemption schemes, it must opt for one or other of these schemes. This option must be taken before 1er January of the year the exemption takes effect.

This option is definitive.

FAQ