Priority neighborhoods of city policy (QPV): tax relief
Verified 21 February 2026 - Entreprendre Service Public / (Prime Minister)
Companies who move to a priority neighborhood of the city policy (QPV) can benefit from tax breaks: exemption from company property tax (CFE), exemption from property tax on built properties (TFPB). Since 1er in january 2026, these companies can benefit from a new income tax exemption scheme.
The extent of the tax relief depends on the date of installation of the company in a QPV:
Installation from 1 January 2026
The priority neighborhoods of the city policy (QPV) are located in urban territory. They are characterized by the following:
- Be in an urban unit (i.e. a commune or a set of communes) with more than 10,000 inhabitants
- Have at least 1000 inhabitants within the perimeter of the QPV
- Difference in income of the population compared to that of the national territory and the agglomeration in which the district is located
In the DOM and the COM, these neighborhoods are characterized by social, demographic, economic or habitat-related criteria, taking into account the specificities of each of these territories.
A tool allows to know precisely the streets that are in priority neighborhood of the city policy (QPV).
Find out if your address is located in a priority neighborhood of the city policy (QPV)
The majority of the inhabitants of the QPVs are facing difficulties related to the precariousness and social exclusion (higher unemployment, educational difficulties, health inequalities). To promote the creation and development of QPV companies, temporary tax exemptions are introduced.
The list of QPV for metropolitan departments is set out in Annex 1 to decree no. 2023-1314 of december 28, 2023.
The list of QPV for overseas departments, Saint Martin, French Polynesia and Mayotte is set out in the Annex to decree no. 2025-1435 of december 30, 2025. For Mayotte, the whole territory is in QPV (article 40 of law no. 2025-797 of august 11, 2025).
The companies concerned by the scheme must carry out certain types of activities. There is no specific tax regime required to benefit from the scheme.
Commercial, craft or health activity
Companies that create or resume, between 1erJanuary 2026 and December 31, 2030, one of the following activities may benefit from the scheme:
- Commercial
- Craft
- Practice of a health profession (i.e. physicians, dental surgeons, midwives, pharmacists, medical auxiliaries.)
The business recovery consists of taking over an existing activity with an effective change of direction. There must be a willingness to maintain the new direction and activity.
A company located in a QPV has the possibility to ask the tax authorities to find out if it can benefit from the exemption from income tax: tax ruling.
If the administration does not respond within 3 months, the lack of response is equivalent to an agreement of the administration.
For more information, you can consult the sheet on the tax ruling.
Taxation system
The company set up or taken over in a QPV may be exempt from income tax regardless of its tax regime. The company subject to micro-company tax system can thus benefit from the exemption from income tax.
Tax rulings procedure
In order to benefit from the income tax exemption, the company set up or taken over must fulfill a condition linked to the number of employees and a condition of turnover:
Number of employees of the company set up or taken over
In order to benefit from the exemption, the company must use less than 50 employees.
The number of employees is calculated for each fiscal year according to the rules of the Social Security. For more details, you can consult our fact sheet on the headcount calculation.
of the company set up or taken over
In order to benefit from the exemption, the company must have achieved an annual turnover ({circumflex over ({circumflex over)} excluding tax which does not exceed €10 million or have a balance sheet total that does not exceed €10 million.
When the company exercises other activities as those eligible for an exemption, the exemption applies only to the amount of turnover ({circumflex over ({circumflex over)}) or revenue resulting from the activity carried out in the QPV.
Where the company partly carries out other activities in a place of operation located outside the QPVs, the exemption shall be applied in proportion to the amount excluding tax of turnover ({circumflex over ({circumflex over)}) or revenue generated within the QPVs.
In the event of the exercise of non-sedentary activity located in a QPV, the income tax exemption applies only if 25% turnover is made in a QPV.
The condition of turnover is assessed on a year-by-year basis.
The income tax exemption does not apply where the company is in one of the following situations:
- Activities benefiting or having benefited, during one or more of the 5 years preceding the year of creation or takeover, other tax relief schemes : Urban Free Zones (UFZs), Young Innovative companies (JEI), job pool to be revitalized (BER), job pools to be revitalized (BUD), defense restructuring zones (DRZs), zones France ruralités revitalization (ZFRR) and zones France ruralités revitalization (ZFRR+)etc.
- Creation or resumption of activity following the transfer, concentration (grouping of companies) or restructuring of activities previously exercised in a QPV. In this case, the exemption ceases after the end of the QPV scheme applicable to the former activity.
- Resumption of activity or company within the family circle. However, if, following the first take-over or restructuring operation, the transferor and its descendants together hold more than 50% voting rights or rights in the social benefits of the business, the latter can benefit from the tax exemption.
- Resumption or restructuring within the family circle resulting solely from a change in social formthe company for the benefit of the individual entrepreneur himself, his spouse, the partner to whom he is linked by a CIVIL PARTNERSHIP, his ascendants and descendants or siblings.
The exemption from income tax is limited in time.
- The First 5 years : the exemption from income tax is total from the creation of an activity or the resumption of an activity
- The 6e year: the allowance shall be 60% profits in the sixth year
- The 7e year: the allowance shall be 40% profits in the seventh year
- The 8e year: the allowance shall be 20% profits in the eighth year
FYI
The company loses the benefit of the exemption in the year in which it has voluntarily ceased its activity.
When the activity is stopped less than 5 years after the last tax exemption, to be transferred to a location not classified as QPV, the company must repay the amount of taxes it has not paid.
The income tax exemption must comply with the european de minimis aid rules. The Act permits tax relief provided that the total amount granted to a company does not exceed €300,000 over a « sliding » period of 3 years.
The ceiling for de minimis aid is limited to €300,000 over 3 consecutive fiscal years. The period must therefore include the current fiscal year, as well as the 2 previous fiscal years.
Compliance with this ceiling shall be assessed at the time when each new de minimis aid is granted. For each new de minimis aid granted, account must be taken of the total amount of aid de minimis granted in the previous 3 years.
Beyond this amount, the aid must be notified to the European Commission.
Conditions for the CFE exemption
Establishments created or taken over between 1er January 2026 and December 31, 2030 in the priority districts of the city policy (QPV) benefit from the CFE exemption if all of the following conditions are met:
- Activity created or taken over must be a commercial activity, craft, or consist in the exercise of a health profession (i.e. doctors, dentists, midwives, pharmacists, medical auxiliaries)
- Employment of less than 50 employees. The number of employees is calculated for each fiscal year according to the rules of the Social Security. For more details, you can consult our fact sheet on the headcount calculation
- Achievement of an annual turnover ({circumflex over ({circumflex over)} excluding tax which does not exceed €10 million or a balance sheet total that does not exceed €10 million.
Possibility to remove the CFE exemption
Municipalities and public inter-municipal cooperation institutions with their own tax system (EPCI) may oppose the exemption of CFE by voting on a deliberation. This deliberation must be taken before the 1ster October for application the following year.
FYI
For the year 2026, the municipality which wishes to oppose the exemption of CFE must take a decision within 120 days as of 19 february 2026.
Duration and amount of CFE exemption
The exemption of CFE is temporary. It is total for 5 years. One abatement degressive applies for the following 3 years:
- The 6e year: the allowance shall be 60% of the net base of the taxation year
- The 7e year: the allowance shall be 40% of the net base of the taxation year
- The 8e year: the allowance shall be 20% of the net base of the taxation year
CFE’s exemption must respect the european de minimis aid rules. This allows tax relief provided that the total amount granted to a single company does not exceed €300,000 over a « sliding » period of 3 years.
The ceiling for de minimis aid is limited to €300,000 over 3 consecutive fiscal years. The period must therefore include the current fiscal year, as well as the 2 previous fiscal years. Compliance with this ceiling shall be assessed at the time when each new de minimis aid is granted. For each new de minimis aid granted, account must be taken of the total amount of aid de minimis granted in the previous 3 years.
Beyond this amount, the aid must be notified to the European Commission.
Application for exemption from CFE
To benefit from the exemption of CFE for an establishment, you must send a form that depends on the situation: establishment or resumption of establishment.
FYI
Companies have until December 31, 2026 to report institutions created or taken over in 2026.
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Establishment Creation
The request for exemption must be addressed for each establishment creation exempt the company Tax Office (SIE) on which the institution depends.
The declaration No. 1447-C-SD is transmitted by post or by secure messaging by the professional area from the tax site.
Resumption of establishment
The request for exemption must be addressed for each take-back of establishment exempt the company Tax Office (SIE) on which the institution depends.
The declaration No. 1447-M-SD is transmitted by post or by secure messaging by the professional area from the tax site.
Company Property Tax Exemptions (CFE)
Conditions for exemption from property tax on built-up properties (TFPB)
The property tax exemption on built-up properties (TFPB) applies to attached buildings, between 1er January 2026 and December 31, 2030, to an institution that meets all of the following conditions:
- Exercise of an activity created or taken over is commercial, artisanal, or a health profession (i.e. doctors, dental surgeons, midwives, pharmacists, medical auxiliaries)
- Employment of less than 50 employees. The number of employees is calculated for each fiscal year according to the rules of the Social Security. For more details, you can consult our fact sheet on the headcount calculation.
- Achievement of an annual turnover ({circumflex over ({circumflex over)} excluding tax which does not exceed €10 million or a balance sheet total that does not exceed €10 million.
TFPB’s exemption must respect the european de minimis aid rules. This allows tax relief provided that the total amount granted to a single company does not exceed €300,000 over a « sliding » period of 3 years.
The ceiling for de minimis aid is limited to €300,000 over 3 consecutive fiscal years. The period must therefore include the current fiscal year, as well as the 2 previous fiscal years. Compliance with this ceiling shall be assessed at the time when each new de minimis aid is granted. For each new de minimis aid granted, account must be taken of the total amount of aid de minimis granted in the previous 3 years.
Beyond this amount, the aid must be notified to the European Commission.
Possibility to remove the TFPB exemption
Municipalities and public inter-municipal cooperation institutions with their own tax system (EPCI) can oppose the exemption from property tax on built properties (TFPB) by voting a deliberation. This deliberation must be taken before the 1ster October for application the following year.
FYI
For the year 2026, the municipality which wishes to oppose the exemption of TFPB must take a decision within 120 days as of 19 february 2026.
Duration of exemption from property tax on built-up properties (TFPB)
The TFPB exemption is total for 5 years. It starts on the 1ster January of the year following the year in which the immovable was connected to an establishment meeting the conditions of the exemption.
She ceases to apply before the end of that period in the following situations:
- The 1er January of the year following the year in which the buildings are no longer used for a commercial or craft activity or a health profession
- The 1er january of the 2nde year following the year in which the company no longer fulfills the conditions for exemption (e.g. non-compliance with the number of employees)
Example :
The property tax exemption will apply in 2027 for an attached building in 2026.
Apply for a property tax exemption on built properties (TFPB)
A company wishing to benefit from the TFPB exemption for its properties located in a QPV must complete an exemption application.
FYI
Companies have until December 31, 2026 to report immovables connected to an establishment that meets the TFPB exemption conditions.
For this, it is necessary to address the Form No. 6733-SD the company Tax Office (SIE) of the location of the premises before 1er January of the year for which the exemption takes effect:
Property Tax Exemption on Built Property (TFPB)
Several exemptions from CFE
Where the company fulfills the conditions to benefit from several company property tax exemption (CFE) schemes, it must opt for only one of those schemes. It cannot cumulate several exemptions.
This option is definitive.
Example :
It is not possible to combine the CFE exemption for QPVs with that provided for in a job pool to be revitalized (BER) or a Defense Restructuring Area (DRA).
CFE and TFPB exemptions
However, it is possible to accumulate both a company property tax exemption (CFE) and a built property tax exemption (TFPB).
However, the total amount of aid (including CFE and TFPB) must not exceed €300,000 over 3 fiscal years according to the application of de minimis rule.
The ceiling for de minimis aid is limited to €300,000 over 3 consecutive fiscal years. The period must therefore include the current fiscal year, as well as the 2 previous fiscal years. Compliance with this ceiling shall be assessed at the time when each new de minimis aid is granted. For each new de minimis aid granted, account must be taken of the total amount of aid de minimis granted in the previous 3 years.
Beyond this amount, the aid must be notified to the European Commission.
Company Property Tax Exemptions (CFE)
Installation until 31 December 2025
The priority neighborhoods of the city policy (QPV) are located in urban territory. They are characterized by the following:
- Minimum number of 10,000 inhabitants
- Difference in income of the population compared to that of the national territory and the agglomeration in which the district is located.
In the DOM and the COM, these neighborhoods are characterized by social, demographic, economic or habitat-related criteria, taking into account the specificities of each of these territories.
A tool allows to know precisely the streets that are in priority neighborhood of the city policy (QPV).
Find out if your address is located in a priority neighborhood of the city policy (QPV)
The majority of the inhabitants of the QPVs are facing difficulties related to the precariousness and social exclusion (higher unemployment, educational difficulties, health inequalities). To promote the creation and development of QPV companies, temporary tax exemptions are introduced.
Companies located in these neighborhoods can benefit from exemptions from property tax on built-up properties (TFPB) and company property tax (CFE). There are 2 CFE exemption schemes:
- Creation and extension of establishments in QPVs
- Small companies with commercial activities in QPVs
The list of QPV for metropolitan departments is set out in Annex 1 to decree no. 2023-1314 of december 28, 2023.
The list of QPV for overseas departments, Saint Martin, French Polynesia and Mayotte is set out in the Annex to decree no. 2025-1435 of december 30, 2025. For Mayotte, the whole territory is in QPV (article 40 of law no. 2025-797 of august 11, 2025).
Deliberation of municipalities
Municipalities and public inter-municipal cooperation institutions with their own tax system (EPCI) may exempt from company property tax (CFE) establishment creations or extensions carried out since 1er January 2015 until December 31, 2025 in the priority districts of the city policy (QPV).
Deliberation must be taken before the 1ster October for application the following year. It sets the rate of exemption, its duration and the neighborhood or neighborhoods concerned. This exemption may be abolished by a deliberation of the communes which must be taken before 1er October of one year to be applicable the following year.
The establishment creation is a new location of a company in a municipality as long as there is no change of operator.
The extension of establishment corresponds to the increase in the means of production of an existing establishment.
The exemption shall not apply in the following cases:
- Change of operators
- Transfer within the same municipality or EPCI with its own taxation to a QPV
Conditions for the CFE exemption
To benefit from this exemption, all the following conditions must be met:
- The establishment created or which has been extended must employ less than 150 employees
- The establishment must depend on a small or medium company which meets all of the following criteria:
- Less than 250 employees
- annual HT: titleContent greater than €50 million or annual balance sheet greater than €43 million (only one of these criteria must be met)
- Where the company is a business: Capital or voting rights not held directly or indirectly up to 25% or more by one or more companies that do not meet the staffing and financial conditions.
A company which is exempt from CFE may also apply for exemption from the company value added tax (CVAE).
Duration and amount of CFE exemption
The exemption of CFE is temporary.
It is total for 5 years. Then one abatement degressive shall apply in the following years:
- 60% the 6e year
- 40% the 7e year
- 20% the 8e year
The amount of this exemption shall be limited according to the net taxable amount of the CFE of the institution. It may not exceed the following amounts:
- In 2022: €29,796
- In 2023: €30,630
- In 2024: €32,468
- In 2025: €33,637
This amount is reassessed each year based on the change in consumer prices (excluding tobacco).
FYI
The amount of CFE’s exemption was limited to a net taxable amount discounted each year. For CFE 2025, the exemption ceiling was set, on a net taxable basis per institution, at €90,737.
This limit is deleted for CFE 2026.
Application for exemption from CFE
To benefit from the exemption of CFE for an establishment, it is necessary to send a form that depends on the situation: establishment or extension of establishment
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Establishment creation or takeover
The request for exemption must be addressed for each establishment creation exempt the company Tax Office (SIE) on which the institution depends.
The declaration No. 1447-M-S is transmitted by post or by secure messaging by the professional area from the tax site.
Extension of establishment
The request for exemption must be addressed for each establishment extension exempt the company tax office (SIE) on which the institution depends.
The declaration No. 1447-C-SD is transmitted by post or by secure messaging by the professional area from the tax site.
Company Property Tax Exemptions (CFE)
Deliberation of municipalities
Municipalities and public inter-municipal cooperation establishments with their own tax system (EPCI) may exempt from CFE the creation or extension of establishments which are dependent on a small company with a commercial activity in QPVs.
This exemption applies to the following establishments:
- Establishments existing to 1er January 2015 or 1er January 2017 (regardless of when they were created) in a QPV
- Establishments which, between 1er January 2015 or 1er January 2017 and December 31, 2025, are the subject of a creation or a extension in a QPV:
- The creation of an establishment is a new establishment of a company in a municipality, provided that there is no change of operator.
- The extension of establishment corresponds to the increase in the means of production of an existing establishment. This increase must not be the result of a transfer of activity within the same municipality or EPCI with its own taxation to a QPV.
Conditions for the CFE exemption
To benefit from this exemption, all conditions The following must be combined:
- Activity of the company : the institution must be dependent on a company exercising a commercial activity. This excludes in particular industrial activities, management or rental of bare or furnished buildings, agricultural or fishing. Craft activities are treated as commercial activities when companies are registered in both the National Register of companies (RNE) and the Trade and businesses Register (RCS).
- Staff of the company (are accounted for employees of all establishments of the company, whether or not located in a QPV):
- Less than 11 employees if the establishment exists at 1er January 2015 or was created in 2015 or 2016
- Less than 50 employees if the establishment exists at 1er January 2017 or has been created since 2017. For establishments created since 1er January 2020, this condition is assessed at each financial year.
- from the company :
- annual or less than €2 million if the establishment exists at 1er January 2015 or was created in 2015 or 2016
- annual or annual balance sheet less than €10 million if the establishment exists at 1er January 2017 or has been created since 2017
- When the company is a business : capital or voting rights not held directly or indirectly for 25% or more by one or more companies that do not meet the headcount and financial conditions: headcount of 250 employees or more and annual turnover HT: titleContent greater than €50 million or annual balance sheet greater than €43 million (only one of these criteria must be met).
Warning
Establishments are eligible for exemption even if they are established in a QPV where the city contract does not exist.
FYI
A company which is exempt from CFE may also apply for exemption from the company value added tax (CVAE).
CFE Waiver Period
The exemption of CFE is total for 5 years.
Then, a abatement degressive shall apply in the following years:
- 60% the 6e year
- 40% the 7e year
- 20% the 8e year
The amount of this exemption shall be limited according to the net taxable amount of the CFE of the institution. It may not exceed the following amounts:
- In 2022: €29,796
- In 2023: €30,630
- In 2024: €32,468
- In 2025: €33,637
This amount is reassessed each year based on the change in consumer prices (excluding tobacco).
FYI
The amount of CFE’s exemption was limited to a net taxable amount discounted each year. For CFE 2025, the exemption ceiling was set, on a net taxable basis per institution, at €90,737.
This limit is deleted for CFE 2026.
Application for exemption from CFE
To benefit from the CFE exemption for an establishment, you must send a form that depends on the situation: establishment or extension of establishment
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Establishment creation or takeover
The request for exemption must be addressed for each establishment exempt the company Tax Office (SIE) on which the institution depends.
The declaration No. 1447-M-S is transmitted by post or by secure messaging by the professional area from the tax site.
Extension of establishment
The request for exemption must be addressed for each establishment extension exempt the company Tax Office (SIE) on which the institution depends.
The declaration No. 1447-C-SD is transmitted by post or by secure messaging by the professional area from the tax site.
Company Property Tax Exemptions (CFE)
Companies who own a property in a QPV can benefit from a property tax exemption on built properties (TFPB). The purpose of this system is to promote the establishment and maintenance of local businesses in these neighborhoods.
FYI
The exemption from property tax on built properties (TFPB) may be abolished by a deliberation of the municipalities or public inter-municipal cooperation institutions with their own taxation (EPCI) before 1er October for application the following year.
TFPB exemption conditions
The conditions of the exemption depend on the number of employees in the company owning the premises:
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Company with less than 11 employees
To benefit from this exemption, all conditions The following must be combined:
- Activity of the company : The immovable property must belong to a company exercising commercial activity. This excludes in particular industrial activities, management or rental of bare or furnished buildings, agricultural or fishing. Craft activities are treated as commercial activities when companies are registered in both the National Register of companies (RNE) and the Trade and businesses Register (RCS).
- Date of creation of the company : the company must have been created between 1er January 2015 and December 31, 2025 (or already installed at 1er January 2015) in a QPV
- annual or company balance sheet less than €2 million
- When the company is a BUSINESS : capital or voting rights not held directly or indirectly for 25% or more by one or more companies not meeting the headcount and financial conditions: headcount of 250 employees or more and annual turnover greater than €50 million or annual balance sheet greater than €43 million (only one of these criteria must be met).
- Attachment of the building to an institution qualifying for the CFE exemption:
- Either the premises exist at 1er January 2017 and is affiliated to an institution that qualifies for the CFE exemption
- Either the room was attached between the 1er January 2017 and December 31, 2025 to an institution benefiting from a CFE exemption.
Company with less than 50 employees
To benefit from this exemption, all conditions The following must be combined:
- Activity of the company : The immovable property must belong to a company exercising commercial activity. This excludes in particular industrial activities, management or rental of bare or furnished buildings, agricultural or fishing. Craft activities are treated as commercial activities when companies are registered in both the National Register of companies (RNE) and the Trade and businesses Register (RCS).
- Date of creation of the company : the company must have been created between 1er January 2017 and December 31, 2025 (or already installed at 1er January 2017) in a QPV.
- annual or company balance sheet less than €10 million
- When the company is a BUSINESS : capital or voting rights not held directly or indirectly for 25% or more by one or more companies that do not meet the headcount and financial conditions: headcount of 250 employees or more and annual turnover HT: titleContent greater than €50 million or annual balance sheet greater than €43 million (only one of these criteria must be met).
- Attachment of premises attached to an establishment:
- Either the premises exist at 1er January 2017 and is affiliated to an institution that qualifies for the CFE exemption
- Either the room was attached between the 1er January 2017 and 31 December 2025 to an institution benefiting from an exemption from CFE.
FYI
Since 1er January 2024, the benefit of TFPB’s exemption no longer depends on whether or not it exists, at 1er January of the reporting year, of a city contract.
TFPB exemption period
The exemption from property tax on built-up properties is temporary. It lasts 5 years.
She ceases to apply before the end of that period in the following situations:
- The 1er January of the year following the year in which the buildings are no longer used for commercial activities
- The 1er january of the 2nde year following the year in which the company no longer fulfills the conditions for exemption (e.g. non-compliance with the number of employees)
Warning
In the event of a change of operator during an exemption period, the exemption shall be maintained for the remaining period under the conditions laid down for the predecessor.
Apply for TFPB exemption
A company wishing to benefit from the TFPB exemption for certain properties located within the perimeter of a QPV and connected to a company carrying on a commercial activity must complete an exemption application.
For this, it is necessary to address the Form No. 6733-SD the company Tax Office (SIE) of the location of the premises before 1er January of the year for which the exemption takes effect.
Property Tax Exemption on Built Property (TFPB)
Several exemptions from CFE
Where the company fulfills the conditions to benefit from several CFE exemption schemes, it must opt for only one of those schemes. This option is definitive.
It cannot cumulate several exemptions.
For example, it is not possible to combine the two CFE exemption schemes for QPVs. Similarly, it is not possible to combine the CFE exemption in the QPVs with the exemption in the employment areas to be revitalized (BERS) or the defense restructuring zones (DRZs).
CFE and TFPB exemptions
However, it is possible to combine both a CFE exemption and a property tax exemption on built properties (TFPB).
However, the total amount of aid (including CFE and TFPB) must not exceed €300,000 over 3 fiscal years according to the application of de minimis rule.
The ceiling for de minimis aid is limited to €300,000 over 3 consecutive fiscal years. The period must therefore include the current fiscal year, as well as the 2 previous fiscal years. Compliance with this ceiling shall be assessed at the time when each new de minimis aid is granted. For each new de minimis aid granted, account must be taken of the total amount of aid de minimis granted in the previous 3 years.
Beyond this amount, the aid must be notified to the European Commission.
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