40 measures to encourage foreign investment in France
On May 22nd, 2006, the French government adopted 40 measures to make France a “favourite European destination" for foreign investors. These administrative and tax measures concern businessmen, French expatriates returning to France and their families, students, major groups and small & medium-sized companies.
There are six studies in progress. Their purpose is to improve the way foreign businesses are received in France, attract researchers and the best foreign students, encourage French expatriates to come back to France, improve tax competitiveness and make formalities easier.
The main measures are summarized below:
Tax and social measures
Business Tax will be lightened depending on the companies’ results. A tax relief will also be applied to new foreign investments.
In high-technology sectors, research tax credits will be higher for innovating businesses and financial and tax support will be granted to foreign laboratories installed in France.
Intra-group secondment of employees will be easier due to clarified regulations.
Further measures will be implemented to encourage building up retirement savings by French expatriates returning to France.
Administrative measures
To make administrative steps easier, companies, employees and employees’ families will have a unique administrative contact.
To facilitate installation of foreign companies in France, the trader registration card will no longer be required for managers, whatever their nationality.
A Foundation for continental law will be created to take into account the Anglo-Saxon model (business law) and help understanding the French business law.
Import/export procedures will be improved and shortened: simplification of international formalities, tailor-made follow-up of major companies and fully computerized relations with users.
Whereas France’s attractivity currently knows a positive trend, the above measures will strengthen and improve its image, and thus encourage foreign investment.
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