A double tax advantage
Individuals resident in France for tax purposes who invest in FCPIs are entitled
to a double tax advantage:
1. In the first place, annual income tax relief equivalent to 25% of the amount invested, capped as
follows:
Maximum investment entitling a tax relief:
- A single person: EUR12,000*
- A married couple: EUR24,000*
2. Exemption from capital gains tax** on the sold or redeemed FCPI units, as long as the units are sold or redeemed
at least five years after their acquisition.
In the event of liquidation of the units before 5 years, the tax advantages are
cancelled, and except in specific cases (see below), the annual income tax relief
equivalent to 25% of the amount invested must be reimbursed to the fiscal authorities
and the units redeemed or sold are subject to capital gains tax :
- Death of the unit-holder or his/her spouse
- Invalidity of the unit-holder or his/her spouse
- Redundancy of the unit-holder or his/her spouse
How to benefit from the tax relief
As a subscriber to FCPI units, your financial advisor will provide you with a
tax relief certificate at the beginning of each year.
You should mention your subscription to FCPI units in your income tax declaration
and attach your tax relief certificate.
Legal information:
* Finance Law 2005
** Excluding social charges of 11% in 2005
