FIP and FCPI: tax reduction eliminated in 2025 and 2026, except for FIP Corsica/overseas and FCPI-JEI

The income tax reduction for subscribing to FIP units, excluding FIPs invested in Corsica or overseas territories, is repealed for cash payments related to subscriptions made from February 16, 2025. The reduction for FCPI units is repealed for payments made from February 21, 2026. This page does not present FIPs and FCPIs as a scheme available in 2026.

Two investment schemes are affected by this elimination: FIPs invested in Corsica or overseas territories, and FCPIs invested in young innovative companies (JEIs). They have their own rules, described here within the limits indicated below. This page is for those wondering if they can still subscribe, and for those who have already subscribed.

What was removed, and on what date?

The duration of the application of the reduction for FIPs invested in Corsica or overseas is not addressed here: it must be checked in the current texts before any decision.

The rates that applied to FCPIs

The basic rate of the reduction was 18% of the tax due on contributions. A rate of 25% of the tax due applied to contributions made from September 28, 2025, until February 2026, for FCPIs (French venture capital funds) approved between January 1, 2024, and December 31, 2025. Two texts in the BOFiP (French Official Tax Bulletin) differ by one day on the end date: this is not repeated here. For 2025 income declared in 2026, the tax administration's simulator indicates 18% of the tax due until September 27, 2025, and 25% of the tax due from September 28 to December 31, 2025.

If you have subscribed: the rules described by the BOFiP

The BOFiP (Official Bulletin of Public Finances) in effect on 27/08/2026 describes the following rules. The specific framework for a subscriber whose commitment is ongoing, beyond the holding period, is not addressed here.

The payment limit. For the tax reduction described in the BOFiP (FCPI and FIP, article 199 terdecies-0 A), eligible contributions are capped at €12,000 for a single, widowed, or divorced individual, and at €24,000 for a married or civil union couple filing jointly. Contributions exceeding these limits cannot be carried forward. These amounts do not apply to FCPIs invested in young innovative companies (JEI). The tax reduction is applied to the tax calculated after the discount: any excess reduction is neither refundable nor carried forward.

The subscriber. The payment must be a cash subscription for new units, made directly by an individual who is a tax resident of France. The subscriber, together with their family group, must not hold more than 10 units of the fund. The effects of a change of tax residence are not addressed here.

The fund. Its assets must meet a minimum investment quota of 70 %.

Conservation. The subscriber undertakes to keep their shares for five years. Two paragraphs of the BOFiP formulate the term differently ("five years following the subscription"; until December 31 of the fifth year following that of the subscription): the exact date is not given here.

The resumption. The sale or partial redemption of a portion of the shares before the maturity date results in the cancellation of the entire reduction. There is no repayment in the event of the death of the policyholder, their spouse or civil partner, disability classified as category 2 or 3, or job loss. A mutually agreed termination of the contract is not considered equivalent to a dismissal.

Supporting documents. The fund management company or the custodian of the fund's assets issues an individual statement no later than February 16th of the year following the subscription. For 2025 income, the simulator indicates box 7GQ for FCPIs, box 7FM for FIPs invested in Corsica, and box 7FL for FIPs invested overseas.

The overall cap on tax benefits

The tax reductions under Article 199 terdecies-0 A, for FCPI and FIP units, are listed in the table of benefits subject to the overall cap of €10,000 (BOFiP, BOI-IR-LIQ-20-20-10-10). According to economie.gouv.fr, this cap is €10,000 per household per year for most schemes.

Products and capital gains

According to the BOFiP (version in effect since May 25, 2023), holders of units in "tax-advantaged" FCPIs (French venture capital funds) are exempt from income tax on distributions and capital gains, provided they meet two conditions: holding the units for five years and immediately reinvesting the distributed amounts. For FIPs (local investment funds), the BOFiP refers to those that are also "tax-advantaged" FCPRs (French venture capital funds) or FPCIs (French private equity funds). These gains remain subject to social security contributions. The applicable rate for these gains in 2026 is not specified here.

This rule precedes the repeals of 2025 and 2026: its connection with them is verified.

For FCPIs invested in JEIs

The BOFiP (Official Bulletin of Public Finances) specifies, for these FCPIs (French Venture Capital Funds), that units must be held until December 31st of the fifth year following subscription, that a quota of 70 units (%) must be reached no later than the last day of the 48th month following the close of the subscription period (the BOFiP refers to a date set by decree: this deadline depends on the date of the payments), and, for payments made from February 21, 2026 onwards, that the tax reduction cannot be combined with certain exemptions under Articles 150-0 A and 163 quinquies B of the French General Tax Code (CGI). The rate and ceilings of this reduction are not given here (BOI-IR-RICI-110-10-20).

What the AMF says about these funds

The AMF guide (March 2023, prior to the repeals) describes FCPIs as investing at least 70% in the securities of unlisted innovative companies, and FIPs as investing at least 70% in regional SMEs. It warns of a risk of partial or total loss of capital. Redemptions are not possible during the fund's lifetime, which can last up to 10 years, except in exceptional circumstances such as death or disability. It mentions entry fees and management fees, and specifies that liquidity depends on the fund's ability to sell its holdings.

Numerical example (fictitious profile)

Situation. A married couple, subject to joint taxation, pays €30,000 in November 2025 into a FCPI approved in 2025. Hypothetical profile: their income tax, calculated after discount, is at least €6,000.

Issue. In 2026, the couple wants to repeat the operation. They are considering their current shares and the discount for a new FCPI subscription.

Strategy. The firm reviews with the couple the retention period, the cases where the reduction would be taken back, and the other tax advantages of the household with regard to the overall cap.

Result.

The shares remain subject to the five-year holding period commitment described above. For a new payment related to a FCPI subscription made on or after February 21, 2026, the tax reduction no longer applies. The case of FCPIs invested in JEI companies, which are subject to a separate tax regime, still needs to be examined.

This profile is fictitious. The calculation assumes a tax liability after the discount of at least €6,000; below this amount, the excess reduction is neither refunded nor carried forward. It also assumes that all payments are capped at the maximum limit; the exact amount can be verified on the relevant fund. This illustrates the mechanism without predicting the outcome for your specific situation.

What changes depending on your situation

• The date of your payments: before or after 16/02/2025 (FIP) or 21/02/2026 (FCPI).
• The type of fund: FIP, FCPI, FIP Corse or overseas, FCPI invested in JEI.
• Your family situation determines the maximum payment amount.
• Your tax residence: the BOFiP refers to a person domiciled in France.
• Your other tax advantages, in view of the overall cap.
• Your timeframe: shares are locked until the end of the holding period commitment.

This page does not quantify the discount you would be entitled to and does not promise any results.