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Overseas FIP simulator: 30% tax reduction
The overseas FIP finances SMEs in the French overseas departments and territories and gives entitlement to a 30% income tax reduction — like the Corsica FIP; mainland FIPs no longer qualify since 2026 — up to €12,000 (single) or €24,000 (couple). A generous rate, but the same trade-offs: unlisted SMEs, illiquidity for at least 5 years, capital not guaranteed.
Of the amount paid in, like the Corsica FIP
€12,000 (single) / €24,000 (couple)
The tax break does not secure the capital
The simulator
Simulate your overseas FIP reduction
The simulator applies the 30% rate and the ceiling. Your data is neither stored nor transmitted.
Overseas FIP simulator
The overseas FIP applies an increased tax reduction rate of 30% for SMEs in the overseas territories.
Indicative calculation, based on 2026 rules and the assumptions entered above.
Why
Why the overseas FIP combines strong tax relief and regional impact
The overseas FIP applies the same increased rate as the Corsica FIP — 30% of the amount paid in — in return for channelling savings into SMEs in the French overseas departments and territories. As with Corsica, this higher rate reflects a wish to support an economic fabric that is structurally more fragile and further from conventional funding channels.
For a heavily taxed taxpayer, the appeal is twofold: a tax advantage that mainland FIPs have not offered since 2026, and the sense of financing the real economy, in territories where capital is scarce. It is a diversification that makes sense, provided it is treated as a risky investment and not as a mere tax reduction.
The downside is the same as for any FIP: you finance unlisted, illiquid SMEs, some of which will fail. The 30% rate cushions the entry price more, but does not protect the capital. The real wealth benefit lies in measured sizing — a limited fraction of your financial assets — and rigorous fund selection.
What the calculation shows
The 3 realities of the overseas FIP
With a 30% reduction, the overseas FIP markedly lowers the cost price: on €24,000 paid in by a couple, that is a €7,200 reduction, whereas a mainland FIP has given none since 2026. But this advantage applies to a risky underlying: unlisted overseas SMEs, with a long illiquidity horizon.
Overseas economies are dynamic but narrow, sometimes exposed to specific hazards (dependence on a few sectors, remoteness, climate). The risk of capital loss is real, the exit value is not guaranteed, and the lock-in of at least 5 years often comes with later liquidity. This must be capital you will not need for a long time.
As with any FIP, final performance depends on the fund's strategy, the manager's experience in the target territories and the level of fees. A high-fee or poorly managed overseas FIP can disappoint despite its 30%. Before subscribing, check the strategy, track record and fees — and how it fits with the overall €10,000 annual cap on tax breaks, against which this advantage counts.
Case study
Case study: Bruno, 53, pharmacy owner in Montpellier
Bruno, taxed at 41%, wants to combine a high-rate tax reduction with diversifying a measured share of his savings into unlisted overseas companies. As a couple, he pays €24,000 into an overseas FIP. Here is what the simulator calculates, risk included:
| Indicator | Amount | Comment |
|---|---|---|
| Amount paid in (couple) | ≈ €24,000 | couple ceiling reached |
| Tax reduction (30%) | ≈ €7,200 | from the year of subscription |
| Net cost price | ≈ €16,800 | after the reduction |
| Capital exposed to SME risk | ≈ €24,000 | exit value not guaranteed |
The €7,200 reduction brings Bruno’s net cost down to ≈ €16,800: if the fund returns the capital at the end of the term, the tax advantage largely protects him. This is a high reduction-to-contribution ratio for an FIP.
But the €24,000 remains fully exposed to the risk of overseas SMEs and locked in for at least 5 years, often longer. Bruno limits this investment to a fraction of his financial assets and only commits money he does not need: the 30% rate is an asset, never a guarantee on exit.
In practice
Diversifying overseas, without confusing rate and security
This simulator quantifies the 30% reduction. The decision rests on the quality of the fund — strategy, manager, fees — and on sizing it correctly. The overseas FIP is a targeted diversification tool, not a core portfolio holding: its attractive rate never removes the need to analyse the underlying.
Balmont Conseil is a wealth management firm, a member of ANACOFI, with no capital ties to any asset management company. We assess overseas FIPs on their real risk/return profile and only select one if it deserves it. Let's book an appointment to integrate this lever into your strategy, where appropriate.
Frequently asked questions
What clients ask us.
What are the rate and ceiling of the overseas FIP?
The income tax reduction is 30% of the amount invested, as for the Corsica FIP (mainland FIPs have not qualified since 2026), up to €12,000 (single person) or €24,000 (couple). This advantage counts towards the overall €10,000 annual cap on tax breaks.
Is the risk specific to overseas territories?
The general risk is that of any FIP: unlisted SMEs, possible capital loss, illiquidity for at least 5 years. On top of this come risks specific to the overseas territories — narrow markets, dependence on a few sectors, remoteness, climate exposure. The 30% rate cushions the entry price but does not protect the capital. This investment remains a diversification to be sized with restraint.
Can an overseas FIP and a Corsica FIP be combined?
Both give a 30% reduction and count towards the same overall €10,000 annual cap on tax breaks. You can hold both, but the point is not to exceed this cap and not to overweight regional unlisted companies in your allocation. How they fit with your other tax advantages must be considered as a whole.
How do you avoid a poor overseas FIP?
By examining the fund's strategy, the manager's experience in the target territories and, above all, the level of entry and management fees. A FIP offering a 30% reduction but laden with fees or poorly managed can disappoint. The rate does not make the quality: it is what the fund holds that determines net performance.
What does a wealth management firm bring to this product?
The 30% rate is a strong selling point, sometimes highlighted to draw attention away from a mediocre fund. Balmont Conseil, a member firm of ANACOFI, has no ties to any asset management company: we compare FIP Outre-mer funds on their actual quality and fees, and retain only those that justify it, in your interest.
