Girardin Industriel: Overseas Tax Reduction in France 2026

What Is Girardin Industriel?

Girardin industriel is a tax reduction scheme provided for under Article 199 undecies B of the Code General des Impots. It allows mainland French taxpayers to finance new industrial equipment operated in French overseas departments and territories (DOM-COM), in exchange for a tax reduction exceeding the amount invested.

In practice, the investor contributes capital used to acquire equipment (utility vehicles, agricultural equipment, industrial machinery) made available to a local operator for 5 years. At the end of this period, the equipment is transferred to the operator for a nominal price.

A Unique Tax Yield: Over 100 %

The distinctive feature of Girardin industriel is its yield exceeding 100 %. For 1 000 euros invested, the tax reduction obtained is typically 1 100 to 1 200 euros.

Worked Example

A taxpayer invests 10 000 euros in a Girardin industriel operation with a yield of 115 %:

• Tax reduction obtained: 11 500 euros
• Net gain: 1 500 euros (11 500 - 10 000)
• Return: +15 % in a single tax year

This gain is achieved in a single shot: the investor pays the capital in year N and obtains the tax reduction in year N+1 when filing the tax return.

The Two Forms of Girardin

Girardin industriel de plein droit (as of right)

• Investment below 250 000 euros per programme.
• No prior tax approval required from the DGFiP (tax authority).
• Simplified procedure, but the risk of tax reassessment is borne by the investor.

Girardin industriel avec agrement (with approval)

• Investment above 250 000 euros per programme.
• Prior approval issued by the Direction Generale des Finances Publiques.
• Enhanced legal security: the approval constitutes a form of administrative validation.

The Specific Cap

Girardin benefits from a higher tax niche cap:

• Standard cap: 10 000 euros of tax reduction per year.
• Girardin cap: 18 000 euros of tax reduction per year.

Thus, a taxpayer using no other tax reduction scheme can obtain up to 18 000 euros of tax reduction via Girardin, representing an investment of approximately 15 600 euros (with a 115 % yield).

Combining with Other Schemes

Girardin has its own counter within the tax niche system. Specifically:

• 10 000 euros available for standard schemes (Pinel, FCPI, etc.)
• + 8 000 euros additional, reserved for overseas investments
• = 18 000 euros global cap

The Risks of Girardin Industriel

Tax Reassessment Risk

If the legal conditions are not met during the 5-year period (effective operation of the equipment, continuation of the operator's activity), the tax authority can claw back the tax reduction, with late payment interest and penalties.

Common causes of reassessment:

• Operator default (judicial liquidation)
• Non-effective operation of the equipment for 5 years
• Early disposal of the equipment

Capital Loss Risk

The investment is non-recoverable: the capital paid is never returned. The only return is the tax reduction. If the reduction is challenged, the loss is total.

How to Limit the Risks

• Choose a reputable arranger with a solid track record (at least 10 years of experience).
• Check for a completion guarantee: some arrangers offer insurance covering the reassessment risk.
• Diversify: spread your investment across several operations and several operators.
• Favour approved operations for significant amounts.

Who Is It Suited For?

Girardin industriel is particularly suited to the following profiles:

• Taxpayers paying at least 5 000 euros of income tax.
• TMI of 30 % or more: the net gain is all the more worthwhile when tax is high.
• Investors who have already maxed out other tax niches: the enhanced 18 000 euros cap offers additional headroom.

Comparative Simulation

Conclusion

Girardin industriel is the only tax reduction scheme offering a yield exceeding 100 %, making it a formidably effective tool for reducing your tax bill. However, the risk of tax reassessment requires selecting your arranger with the utmost rigour and favouring guaranteed operations. Used wisely, Girardin constitutes an essential building block of an optimised tax reduction strategy.