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

Verified 10 July 2025 - Directorate of Legal and Administrative Information (Prime Minister)

Zoning France ruralités revitalization (ZFRR) has been implemented since the 1er  July 2024 to support fragile rural territories. 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. This classification allows to benefit from several tax advantages.

The France ruralities revitalization zone (FRR) scheme includes two 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 in ZFRR

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

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

Some municipalities located in the former Zones de Revitalization Rurale (ZRR) have not been reclassified as Zones France Ruralité Revitalization (ZFRR). They also benefit from the tax exemptions applicable to ZFRRs from 1er July 2024 and until 31 December 2027. We speak of municipalities “beneficiaries of ZFRR zoning”.

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

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

Municipalities classified in 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. These are assessed according to income, population and employment in the EPCI or living areas. This classification shall apply from 1er January 2025.

THEarrestedwhich sets the classification of municipalities in “ZFRR +” was published on July 10, 2025.

This ranking is reviewed every 6 years.

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 July 2024 and December 31, 2029 in ZFRR and ZFRR + may benefit from tax exemptions on profits.

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

Warning  

Municipalities classified as Rural Revitalization Zones (RRAs) but which have not been reclassified as France Rural Revitalization Zones (FRRAs) can benefit from the tax advantages of the RRA system until December 31, 2027.

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

The conditions concerning the implantation of the company are different depending on whether it is a ZFRR or a ZFRR +.

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ZFRR

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. When the activity is carried out out of ZFRREven on an ad hoc basis, the exemption is only applicable if the company has a turnover outside the FRR area that does not exceed 25%. In this case, the exemption is maintained in proportion to the turnover achieved 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.

ZFRR+

When the company implants itself in ZFRR+, the exclusive implantation criterion is not 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 exercises a 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.

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

The company set up or taken over must fulfill conditions relating to its activity, its taxation system and its size. These conditions are different depending on the area in which the company is located:

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ZFRR

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 on the workforce calculation, please refer to dedicated sheet.

ZFRR +

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 shall meet the following criteria:

  • 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 ruralités revitalization (ZFRR) zones between 1er July 2024 and December 31, 2029 benefit from a profit exemption scheme.

Warning  

Municipalities classified as Rural Revitalization Zones (RRAs) but which have not been reclassified as France Rural Revitalization Zones (FRRAs) can benefit from the tax advantages of the RRA system 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 must issue a decision providing for the exemption of CFE. This is taken under different delay conditions in a ZFRR or in a ZFRR+.

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ZFRR

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 where the 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 entered in the new ZFRR zoning on 1er July 2024: the commune or the EPCI was to deliberate on the exemption from CFE within 90 days of the publication of the order classifying communes as ZFR (published on June 20, 2024). The municipality therefore had until 18 September 2024 to decide on the CFE exemption.
  • Municipalities that 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 of 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 in ZFRR + which decides on an exemption from CFE from 1er january 2025 to take a deliberation within 90 days following the publication of thearrested classification of municipalities in “ZFRR +”. This order was published on July 10, 2025.

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

FYI  

For the year 2025, the company, located in a commune that has been part of the new France ruralités revitalization (ZFRR) zoning since July 1, 2024 or since the Finance Law of February 14, 2025, can request the CFE exemption from the tax administration until 5 May 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 CFE exemption schemes, it must opt for one or the 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 theEPCI shall take a decision providing for the exemption of TFPB. The conditions of this deliberation are different in ZFRRs or ZFRR+.

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ZFRR

The exemption from property tax on built properties (TFPB) is not systematic. It must be decided by a deliberation of the municipality or the EPCI .

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

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

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

  • Municipalities entered in the new ZFRR zoning on 1er July 2024: the commune or the EPCI was to deliberate on the exemption from CFE within 90 days of the publication of the order classifying communes as ZFR (published on June 20, 2024). The municipality therefore had until 18 September 2024 to decide on the CFE exemption.
  • Municipalities that 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 of CFE within 40 days following the Finance Law of 14 February 2025, that is to say until March 26, 2025.

On deliberation of the communes and EPCI: titleContent In these cases, an exemption from TFPB may be granted to hotels, tourist accommodation and bed and breakfast accommodation.

ZFRR +

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 thearrestedthe classification of municipalities as ZFRR+.

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  

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 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 the exemption takes effect.

This option is definitive.

In RFSAs, local and regional authorities and EPCI: titleContent may exempt secondary residence housing tax (THRS), the following premises:

  • Furnished accommodation
  • Bed and Breakfast

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

To apply for the exemption, the company must complete the cerfa No. 13567 and send it to the property tax center competent for his commune before the 1ster March of each year.

Request the exemption of the housing tax for guest rooms and furnished tourism located in rural revitalization zone France (ZFRR or ZFRR+)

Who shall I contact

FAQ