Overseas business free zones: allowances on profits, business tax and property taxes

Articles 4 to 7 and 10 of the law on the economic development of the overseas territories create business free zones in Guadeloupe, French Guiana, Martinique and La Réunion for firms with fewer than 250 employees and turnover below €50 million in eligible sectors. Profits benefit from a 50% allowance capped at €150,000 (80% and €300,000 for certain priority territories and sectors, 100% in Les Saintes, Marie-Galante and La Désirade for financial years opened until 2011), tapering for years opened from 2015 to 2017 (Article 44 quaterdecies of the General Tax Code). Unless local authorities decide otherwise, the business tax base benefits from an 80% allowance capped at €150,000 (Article 1466 F), the built property tax from a 50% allowance (1388 quinquies) and the unbuilt property tax from an 80% exemption (1395 H), for the 2009 to 2018 tax years, with lower rates at the end of the period.