Urban Free Zone-Entrepreneurial Territory (ZFU-TE)
Thanks to our network of local authorities, we can inform you quickly and free of charge of the availability of Urban Free Zone-Entrepreneurial Territory (ZFU-TE) in most regions of France.
Starting a business in an EPZ
Urban Free Zones (ZFU) and Urban Free Zones-Entrepreneurial Territory (ZFU-TE) - the name given to ZFU since 2015 - offer companies that set up there the opportunity to benefit from a 100% tax exemption on profits for five years.
Valid until 31 December 2023, the ZFU-TE scheme applies to all companies*, regardless of their legal status or tax regime.
Which companies can benefit from the ZFU-TE scheme?
To benefit from this tax exemption scheme, companies must meet the following conditions :
- Carry out an industrial, commercial, craft or liberal activity,
- Set up in a ZFU-TE before 31 December 2023,
- Employ less than fifty employees,
- Have a turnover (or balance sheet total) of less than 10 million euros.
In addition, the company's capital and voting rights must not be held for more than 25% by a company with more than 250 employees and an annual turnover excluding VAT exceeding 50 million euros (or with a balance sheet total exceeding 43 million euros).
Finally, the company's workforce must include at least 50% of employees (on permanent or fixed-term contracts of at least 12 months) residing in the ZFU-TE or in a priority urban district (QPV) where the ZFU-TE is located. This provision applies as of the hiring of the second employee. The number of employees in the company must be respected for each tax year.
It should be noted that, for companies created as of 1 January 2016, the exemption from income tax is conditional on the signing of a city contract.
Identifying available premises and land in urban free zones and entrepreneurial territories (ZFU-TE)
In charge of promoting urban free zones in various regions of France, our business location assistance service offers you free access to available premises in Urban Free Zones - Entrepreneurial Territories by contacting one of our business location officers.
* Companies operating in the automobile and shipbuilding sectors, the manufacture of artificial or synthetic textile fibres, the steel industry, road haulage or in the leasing of equipment and the rental of residential buildings are not eligible for the tax exemption on profits.
