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

Verified 18 April 2025 - Directorate for Legal and Administrative Information (Prime Minister)

Zoning France ruralités revitalization (ZFRR) has been implemented since 1er  july 2024 to support fragile rural areas. Most of the municipalities previously classified as rural regeneration areas (RRAs) have integrated the new ZFRR zoning. A reinforced "ZFRR+" level is planned for the most vulnerable territories. This classification in FRA allows to benefit from several tax advantages.

The zone France ruralités revitalization (FRR) scheme has 2 levels of tax benefits:

  • Base Level ‘ZFRR’ for municipalities with less than 30 000 inhabitants meeting certain population density and income criteria
  • Enhanced level “ZFRR +” for the most vulnerable territories.

Municipalities classified as ZFRR

The new zoning called “France ruralités revitalization” (ZFRR) concerns municipalities with less than 30,000 inhabitants located in a public intermunicipal cooperation institution (EPCI)), in a department or life basin. These municipalities meet certain population density and income criteria.

The list of municipalities classified as ZFRR is fixed by a decree entered into force on 1er July 2024 for 6 years.

Some municipalities in the former Zones de Revitalization Rurale (ZRR) have not been reclassified as Zones France Ruralité Revitalization (ZFRR). They also benefit from tax exemptions for FRAs from 1er july 2024 and until 31 december 2027. These are called “ZFRR zoning beneficiary municipalities”.

To check if your municipality is in a ZFRR zone or is “beneficiary of ZFRR zoning” in 2025, a simulator is available:

Check whether a municipality is located in ZFRR or is a ‘beneficiary’ of ZFRR zoning 

Municipalities classified as ZFRR +

The classification as ‘ZFRR +’ concerns rural municipalities classified in an ZFRR and members of a EPCI or a life basin faced with particular difficulties over a period of at least 10 years. These are assessed according to income, population and employment in IBDs or living areas.

This classification shall apply from 1er January 2025.

FYI  

However, the decree which defines the classification of municipalities as ‘ZFRR +’ has not yet been published.

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

Create or resume a company in the zone

The company creations realized between 1er july 2024 and december 31, 2029 in ZFRR and ZFRR + may benefit from tax exemptions from income tax.

The exemption also applies to the resumption of company in ZFRR: this is the operation whereby the effective management of an existing company is taken over with the intention of remaining in business. The take-back date corresponds to the moment when the change of direction takes place in an effective manner.

Warning  

Municipalities classified as Rural Revitalization Zones (ZRR) but which have not been reclassified as Zones France Ruralité Revitalization (ZFRR) may benefit from the tax advantages of the ZFRR scheme until December 31, 2027.

The 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 five years preceding the year of creation or take-over, other tax relief schemes : Urban Free Zones (UFAs), young innovative companies (JEI), employment pool to be revitalized (BER)), job pools to be revitalized (BUD), Defense Restructuring Areas (DRAs), etc.
  • Creation or take-over of activities following the transfer, concentration (grouping of companies) or restructuring of activities previously carried out in another FRA. In that case, the exemption shall cease after the end of the FRRA applicable to the former activity.
  • Return to activity or company within the family circle. However, the first takeover operation for the benefit of the descendants of the transferor of the company may benefit from the tax exemption.
  • Take-overs or restructuring within the family circle resulting solely from a change in social form (exclusion of all forms of ‘own-initiative’ takeover). Individual business For example, transformation of a company into a limited liability company (LLC).

Location of the company in the area

The conditions concerning the location of the company are different depending on whether it is an FRRA or an FRRA +.

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ZFRR

To benefit from the exemption scheme, the company must be exclusively implanted in the ZFRR zone. This means that the company’s effective management, all of its business and all of its means of exploitation, human and material, must be located in the RRRF.

The tax exemption applies when the activity is sedentary. When the activity is carried out out of ZFRRHowever, even on an ad hoc basis, the exemption is only applicable if the company has a turnover outside the FRR zone which does not exceed 25%. In this case, the exemption shall be held as a proportion of the turnover in the FRA zone.

Example :

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

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

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

Example :

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

ZFRR+

When the company implants in ZFRR+, the exclusive implantation criterion is not imposed. This means that the effective management of the company, its entire business and its means of exploitation, human and material, do not need to be located in the ZFRR+ in order to benefit from the exemption.

A company that exercises non-active activity sedentary may benefit from tax exemptions where the part of the activity carried out out of area ZFRR + does not exceed 25% of total turnover.

Activity, tax system and effective operation of the company set up or taken over

The company set up or taken over must meet conditions concerning its activity, its taxation system and its size. These conditions differ depending on the area in which the company is located:

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ZFRR

Activity pursued

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

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

Example :

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

Tax system

For trade and craft activities, the company must be subject to a actual taxation system normal or simplified results.

For liberal activities, it shall be subject to the controlled declaration procedure.

Warning  

Companies subject to the micro-tax system are not eligible for the income tax exemption in the FRAs.

Number of staff in the company

The company created or resumed must employ fewer than 11 employees.

The number of employees is calculated for each financial year according to the rules of Social Security. For more information on the establishment plan, see the dedicated card.

ZFRR +

Activity pursued

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

Tax system

A company set up or incorporated in an RRSP+ is exempt from income tax regardless of its tax regime. This means that the company subject to the micro-tax system may benefit from the exemption from income tax.

Number of staff in the company

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

In case of creation, the company must meet the following criteria:

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

When it is a resumption, the company shall employ less than 11 employees.

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

Warning  

Municipalities classified as Rural Revitalization Zones (ZRR) but which have not been reclassified as Zones France Ruralité Revitalization (ZFRR) may benefit from the tax advantages of the ZFRR scheme until December 31, 2027.

Amount and duration of the income tax exemption

The income tax exemption 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 comply with 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 “slippery” 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 the date of granting each new de minimis aid. For each new de minimis aid granted, account shall be taken of the total amount of aid de minimis granted during the previous 3 years.

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

Procedure for obtaining exemption

In order to benefit from the income tax exemption, only indicate the amount of profit on the annual declaration of result.

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

If the company qualifies for several exemption schemes (for example: Defense Restructuring Area (DRA), urban areas to be dynamized (BUD), young innovative companies (JEI), employment pool to be revitalized (BER), etc.), it must make a choice. To opt for FRR zoning, it has 6 months after the start of activity. This choice is definitive.

The option must be notified to the EIS: titleContent of the company's reporting place.

Who shall I contact

Deliberation of municipalities and EPCI

The municipality or theEPCI shall issue a deliberation providing for the exemption of CFE. This is taken under different time conditions in an FRRA or a FRRA+.

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ZFRR

The decision taken by the municipality or the EPCI is not systematic. This means that if the municipality or the EPCI does not issue 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 exemption from company property tax (CFE) from 1er January of the following year (N+1).

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

  • Communes entered the new ZFRR zoning on 1er July 2024: the municipality or the EPCI was to deliberate on the CFE exemption within 90 days of the publication of the decree classifying municipalities in ZFR (published on June 20, 2024). The municipality therefore had until 18 September 2024 to decide on the exemption of CFE.
  • Municipalities which were in Zones de Revitalization Rurale (ZRR) but which have not been reclassified as Zones France Ruralité Revitalization (ZFRR): the municipality may take a decision providing for the exemption from CFE within 40 days following the Finance Law of 14 February 2025, that is to say until March 26, 2025.

ZFRR +

The municipality or EPCI classified as ZFRR + which decides on an exemption from CFE from 1er january 2025 must take placewithin 90 days following the publication of the decree classifying municipalities as ‘ZFRR +’.

Warning  

The decree specifying the list of municipalities classified as ZFRR + has not yet been published.

Amount and duration of the CFC exemption

The exemption from CFE shall apply to:

  • from the year following that in which creation of the establishment
  • either from 2eyear following that of the extension of an establishment.

This exemption is limited in time.

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

Eligibility for the exemption must comply with the European rules on de minimis aid. This allows tax relief provided that the total amount granted to a single company does not exceed €300,000 over a “slippery” 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 the date of granting each new de minimis aid. For each new de minimis aid granted, account shall be taken of the total amount of aid de minimis granted during the previous 3 years.

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

Procedure for obtaining exemption

In the case of establishment or change of operator, the company wishing to benefit from the CFE exemption must apply for it with Form no 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 subsequent years, a declaration shall be made only in the event of a change in the conditions under which the exemption was granted.

The exemption must be claimed from the company Tax Office (SIE) on which each company establishment depends.

Who shall I contact

FYI  

For the year 2025, the company, located in a commune that entered the new France ruralités revitalization (ZFRR) zoning since July 1, 2024 or since the budget law of February 14, 2025, can apply for the exemption of CFE 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 areas of the city (QPV) or young innovative companies (JEI), etc.

If it qualifies to benefit from more than one CFE exemption scheme, it must opt for one or the other of these schemes. This option must be taken before 1er January of the year in which the exemption takes effect.

This option is definitive.

Deliberation of the municipality or EPCI

The municipality or theEPCI must take a decision providing for the exemption of TFPB. The conditions for this deliberation are different in the FRRAs or the FRRA+.

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ZFRR

Property tax exemption on built property (TFPB) is not systematic. It must be decided by a decision of the municipality or the EPCI .

This exemption applies to real estate situated in the FRA zones and connected to an establishment benefiting from the TFPB exemption.

In principle, the municipalities or the EPCI have until 1er October (year N) to decide on the property tax exemption on built property (TFPB). This will apply from 1er January of the following year (N+1).

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

  • Communes entered the new ZFRR zoning on 1er July 2024: the municipality or the EPCI was to deliberate on the CFE exemption within 90 days of the publication of the decree classifying municipalities in ZFR (published on June 20, 2024). The municipality therefore had until 18 September 2024 to decide on the exemption of CFE.
  • Municipalities which were in Zones de Revitalization Rurale (ZRR) but which have not been reclassified as Zones France Ruralité Revitalization (ZFRR): the municipality may take a decision providing for the exemption from CFE within 40 days following the Finance Law of 14 February 2025, that is to say until March 26, 2025.

On the deliberation of the municipalities and EPCI: titleContent In these cases, an exemption from TFPB may be granted in favor of hotels, tourist furniture and bed and breakfasts.

ZFRR +

The municipality or EPCI classified as FRR + which wishes to establish an exemption from TFPB for transactions carried out from 1er january 2025 must take place within 90 days following the publication of the decree classifying municipalities as FRR+.

FYI  

The decree classifying municipalities as ZFRR+ has not yet been published.

Amount and duration of the TFPB exemption

The property tax exemption applies to the same extent and for the same duration as the CFE exemption. It shall start from 1er January of the year following the attachment of the immovable to an activity qualifying for the exemption.

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

Eligibility for the exemption must comply with the European rules on de minimis aid. This allows tax relief provided that the total amount granted to a single company does not exceed €300,000 over a “slippery” 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 the date of granting each new de minimis aid. For each new de minimis aid granted, account shall be taken of the total amount of aid de minimis granted during the previous 3 years.

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

Procedure for obtaining exemption

The exemption applies to real estate situated in the FRA zones and connected to an establishment that qualifies for the CFE exemption.

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

For more details on the Property Tax Return for Built Properties (TFPB), see the dedicated card to this tax.

FYI  

Owners of premises located in a commune entered the new ZFRR zoning since 1er july 2024 ont until 5 may 2025 to report the identification details of buildings.

Non-cumulation with other exemption schemes

The company may not combine the exemption from TFPB with that of the priority areas of the city (QPV) , young innovative companies (JEI), job pools to be revitalized (BUD), etc.

If it qualifies for several TFPB exemption schemes, it must opt for one or the other of these schemes. This option must be taken before 1er January of the year in which the exemption takes effect.

This option is definitive.

In the FRAs, local and regional authorities and EPCI: titleContent may exempt Residential property tax on secondary residences (THRS), the following premises:

  • Furniture for tourism
  • Bed and Breakfast

For 2025, the municipalities and EPCI must decide on this exemption before March 26, 2025.

In order to claim the exemption, the company must complete the form cerfa n° 13567 and send it to the property tax center responsible for its municipality before 1er March of each year.

Request the exemption from the housing tax for bed and breakfast and furnished tourism located in the rural revitalization zone France (ZFRR or ZFRR+)

Who shall I contact

FAQ