Investment Landscape in France
France remains one of the primary destinations for Foreign Direct Investment (FDI) in Europe. As of 2025, the French government maintains a policy of economic attractiveness characterized by simplified administrative procedures, tax incentives for research and development, and a robust legal framework protecting investor rights. The "France 2030" investment plan continues to direct significant capital into green industry, biotechnology, and digital transition.
Foreign investors are generally treated the same as French nationals regarding the acquisition of assets, though specific sectors related to national security (such as defense, energy, and water supply) require prior authorization from the Ministry of the Economy. For most retail, real estate, and technology investments, the process is open and transparent.
Primary Investment Categories
Foreign nationals typically engage with the French market through three main channels: real estate, business creation/acquisition, and financial markets.
Real Estate Investment
Real estate is a preferred asset class for foreign residents. While there are no restrictions on foreigners buying property, transaction costs are significant. Notary fees (frais de notaire) for older properties typically range between 7% and 8% of the purchase price, while new builds attract a lower rate of approximately 2% to 3%.
Business and Entrepreneurship
France has streamlined the process for setting up companies. The most common structures for foreign investors are the Société par Actions Simplifiée (SAS) and the Société à Responsabilité Limitée (SARL). The minimum share capital for these entities can be as low as 1 EUR ($1.05 USD, Jan 2025), though practical operational requirements usually necessitate a higher initial injection.
Innovation and Startups
The "La French Tech" ecosystem provides a supportive environment for tech-driven investments. Investors can benefit from the Crédit d'Impôt Recherche (CIR), a research tax credit that is considered one of the most generous in the European Union.
The Talent Passport - Business Investor
For non-EU nationals seeking residency through investment, the "Talent Passport - Business Investor" (Passeport Talent - Investisseur économique) is the primary pathway. This visa is valid for up to four years and is renewable. To qualify under current 2025/2026 regulations, the applicant must meet the following criteria:
- Invest at least 300,000 EUR ($315,000 USD, Jan 2025) in fixed tangible or intangible assets.
- Invest either personally or through a company in which they hold at least 30% of the capital.
- Commit to creating or protecting jobs within the four years following the investment.
- Provide proof of the investment plan and its economic viability.
Detailed official requirements can be found on the Service-Public.fr official portal.
Legal and Administrative Steps
The transition from planning to execution requires several mandatory administrative steps. Foreign investors are advised to engage with Business France, the national agency supporting international investment.
Banking and Compliance
Opening a professional bank account is a prerequisite for company registration. Under "Know Your Customer" (KYC) and Anti-Money Laundering (AML) regulations, banks require extensive documentation regarding the source of funds. If a bank refuses to open an account, investors may exercise their "Right to an Account" (Droit au compte) through the Banque de France.
Taxation Overview
Investors must navigate the French tax system, which includes:
- Corporate Income Tax: The standard rate is currently 25%.
- Flat Tax (Prélèvement Forfaitaire Unique): A 30% flat tax usually applies to capital gains, interests, and dividends for individuals.
- Wealth Tax (IFI): Only applies to real estate assets if the net taxable value exceeds 1,300,000 EUR ($1,365,000 USD, Jan 2025).
Note: France has signed bilateral tax treaties with over 120 countries to prevent double taxation. Investors should verify the specific treaty applicable to their country of tax residence.