What is the market in France known for?

France has substantial agricultural resources (France is the European Union’s leading agricultural producer), a large industrial base and a highly skilled labour force. Services represent 71% of France’s domestic product. France is a leading country in high technology, with a long tradition of innovation. Spending on R&D represents 2% of Gross Domestic Product (Insee, 2012). Leading industrial sectors in France are telecommunications (including satellite communications), aerospace and defence, aircraft, shipbuilding, pharmaceuticals, chemicals, construction and civil engineering.

Other key sectors include automobiles, machinery, metallurgy, electronics, textile, food processing and tourism. Despite significant liberalisation over the past 15 years, the government continues to play a significant role in the economy. The government continues to own shares in corporations in a range of sectors including energy production, telecommunications and transportation.

What are the key countries responsible for FDI business in France? 

Companies investing in France come from nearly 60 different countries. Prominent among them are European
Union member states, which represent 61% of all investment decisions. This is a sign that the European market is still structured and unified. North America still considers France to be an ideal gateway to the European continent, with the United States retaining its position as the leading investor (21%). Asia’s
score is encouraging with 11% of all projects.

Are there publicly funded incentives available for FDI businesses in France?

We have listed hereafter some example of exemptions and special deductions available under conditions:

  • Exemptions from Corporate Income Tax for Companies established in Urban Free Zones (UFZs), Companies established in Zones de Restructuration de la Défense (ZRD), Companies established in Zones de développement prioritaire (ZDP)
  • Exemptions from Corporate Income Tax for Innovative start-up companies
  • Research and development (R&D) tax credit

Key contacts 

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Idriss Belloucif

Partner
E: [email protected]

 

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Beatrice Belouet

Partner
E: [email protected]