French Tax Reduction Schemes in 2026: A Practical Guide for Expats
If you pay income tax in France, you've probably heard of défiscalisation, the legal ways to reduce your tax bill. The options are many, and each one comes with its own rules, risks and deadlines.
Before we get into them, one key reminder: what you do in 2026 reduces the tax you pay in 2027, since your 2026 income is declared in spring 2027 and the final bill is calculated that summer. For almost all of the schemes below, the payment or investment must be made by December 31, 2026. In practice, you should aim to have everything wrapped up by mid-December.
Here's an overview of the main options, grouped into three categories.
1. Financial schemes
PER (Plan d'Épargne Retraite)
The PER is a retirement savings plan. Contributions can be deducted from your taxable income, within an annual limit based mainly on your professional income. The higher your marginal tax rate, the bigger the saving. In return, your money is generally locked until retirement, with some exceptions (such as buying your main residence).
Best for: in most cases, taxpayers with a marginal tax rate of 30% or more who want to save for retirement.
Girardin Industriel
With the Girardin Industriel scheme, you finance equipment used by businesses in France's overseas territories. It is a "lost funds" investment that gives you a tax reduction applied in a single go, the year after you subscribe. The reduction is higher than the amount you put in, which is where your return comes from. Your contribution is never paid back, and the tax benefit can be clawed back if the equipment isn't operated for five years.
Timing matters a lot here: some providers offer returns of up to 23% early in the year, compared with around 8% at year-end. Waiting until December costs you money.
Best for: taxpayers paying €3,000 or more in income tax who want a one-off reduction.
ESUS investments (Solidarity companies)
You can invest in the capital of companies certified ESUS (Entreprise Solidaire d'Utilité Sociale), such as solidarity property companies working on social housing, senior housing through solidarity life annuity schemes (viager solidaire), or energy renovation. The increased 25% tax reduction rate for these investments has been extended until 2027. Shares must be held for at least 5 years if bought back by a third party, or 7 years if repaid by the company.
Best for: investors who want a tax reduction with a clear social or environmental impact. Accessible from €1,000 of income tax.
SOFICA
SOFICAs finance French film and TV production. They give a tax reduction of 30%, 36% or 48% of the amount invested, within an annual limit of €18,000 per household. Your shares must be held at least until December 31 of the fifth year after the investment, liquidation often takes longer, and there is no organised secondary market, so capital losses are possible.
SOFICA allocations are limited and usually sell out in the autumn. Don't wait until December.
Best for: film lovers who are ready to take a high risk, and high earners who have already used up other schemes and accept a long lock-up period.
2. Real estate schemes
Jeanbrun scheme (the new "private landlord status")
This is the big novelty of 2026. Created by the 2026 budget, it replaces the Pinel scheme, which ended on December 31, 2024. Instead of a tax reduction, it relies on depreciation that is deducted from your rental income. It allows annual depreciation of 3% to 5.5% on 80% of the purchase price, with annual caps of €8,000 to €12,000 per household depending on the rent level. It applies to purchases made between February 21, 2026 and December 31, 2028, with no geographic zoning. Only apartments in residential buildings qualify, new or old, and individual houses are excluded.
Important for expats: the landlord must be an individual who is a French tax resident.
Best for: French tax residents looking for a long-term rental investment.
Malraux
The Malraux scheme lets you invest in apartments located in historic buildings in protected areas, which are fully restored by specialist operators. You don't handle the renovation yourself: you buy a unit and finance its restoration as part of an overall project. In return, you get a tax reduction of 22% or 30% of eligible works, depending on the area, within a limit of €400,000 of expenses over four years. It also sits outside the general cap on tax breaks.
The reduction applies to works actually paid during the year, so it's best to commit to a project early.
Best for: people who want to invest in exceptional real estate with long-term appreciation potential. Accessible from €6,000 of income tax.
Déficit Foncier (Property deficit)
If you rent out an unfurnished property and your expenses (mainly renovation works) exceed your rental income, the resulting deficit can be deducted from your overall income. The standard limit is €10,700 per year. The 2026 budget extended until December 31, 2027 the doubled limit of €21,400 per year for landlords carrying out energy renovation works. To qualify, the property must be rated E, F or G before the works, reach at least D afterwards, and be rented unfurnished for at least three years.
The works must be paid in 2026 to count for your 2026 income, so you'll need to book contractors well in advance.
Best for: landlords with existing rental income and properties that need renovation.
3. Other schemes
Household employment services (Services à la personne)
If you employ someone at home, either directly or through an approved company, for cleaning, childcare, gardening, tutoring or home assistance, you get a tax credit of 50% of the amounts spent, within an annual limit (€12,000 as a base, increased depending on your household). Because it's a tax credit and not a reduction, you get it even if you pay little or no income tax.
Best for: almost everyone who uses these services. It's one of the simplest and most widely used schemes.
A few important points for expats
Your tax residency is decisive. Many of these schemes, including Girardin and Jeanbrun, are only available to French tax residents. Non-residents with French-source income have far fewer options.
Watch the overall cap. Most tax reductions are subject to a global cap of €10,000 per year, raised to €18,000 for investments like SOFICA and Girardin. The déficit foncier and Malraux sit outside this cap, which makes them useful for combining with other schemes.
Think about your home country. A tax break in France may be treated differently where you're from. Check the tax treaty and your obligations back home.
Never invest for tax reasons alone. Every scheme comes with risks, lock-up periods and conditions. The investment has to make sense on its own merits.
Don't wait until December
Whatever scheme you choose, the rule is the same: to reduce your 2027 tax bill, you need to act in 2026. Some options, like Girardin and SOFICA, reward early investors or sell out long before year-end. Others, like property works, require months of planning. And banks, platforms and advisers are all overloaded in December.
The earlier you start, the more choice you have, and the better the conditions.
Living in France and want to reduce your 2027 tax bill?
If you are an expatriate living in France and have questions about reducing your French income tax, which of these schemes suit your situation, your foreign income or how French taxation interacts with your home country's tax system, you can book a free introductory call to discuss your situation and identify the key points that should be checked before the end-of-year deadline.
Disclaimer: This article is for general information and educational purposes only. It is based primarily on official French government sources and other trusted references. It does not constitute personalised tax, legal or financial advice. Tax obligations and eligibility for tax reductions depend on individual circumstances, the country concerned and the applicable tax treaty.
