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Tax optimization tools: the Girardin Industriel law

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Purpose of the Girardin Industrial Law

As it has evolved, the Girardin Industriel law essentially aims to offer French taxpayers a tax reduction in exchange for their investments in overseas businesses. This attractive measure promotes the economic and social development of the French overseas territories by specifically targeting priority sectors.


The Girardin law: a one-shot cash flow strategy

Unlike other tax relief schemes, the Girardin law scheme offers a tax reduction in the year following the investment.

This means that investors can repeat the operation each year, and adjust their investment to reflect changes in their income.

If the taxable amount is exceeded, the tax reduction can be carried forward for 5 years, provided the overall ceiling for tax niches is not exceeded.

Example at 13% profitability - Girardin Industrial Law

Amount of tax reduction

The term "leverage" refers to the fact that the contribution of funds makes it possible to obtain a tax reduction greater than the contributions made to the operation by the investing taxpayer.


The investor associated with the company

The cornerstone of the Loi Girardin Industriel scheme relies on investors subscribing to the capital of one or more companies created and managed by ECOFIP.

The number of shares varies according to the amount of contribution required.

Each investor holds these shares for the entire life of the company, i.e. a minimum of five years.

Basic protection for every investor

Our excellent knowledge of the economic fabric and potential of the French overseas regions protects every investor.

As a partner in an SNC, the investor is protected against all tenant payment defaults by a clause limiting the bank's recourse, which is systematically included in all files set up by ECOFIP.

ECOFIP sets aside funds over the 5 years following the set-up, to maintain its local teams and guarantee the management and monitoring of operations whatever happens.


ECOFIP insurances

ECOFIP has taken out several insurance policies to ensure that Girardin Industriel's investments are guaranteed up to 100% of the tax reduction (underwritten with Garantie G Plus).

1. Professional liability insurance (RC PRO)

This insurance covers all potential errors in the set-up and management of ECOFIP, up to a limit of 2,000,000 euros per claim and year.

News :

  1. Purchase of a 2nd policy for an additional 7,500,000 euros per claim per year.

  2. Purchase of a 3rd policy for an additional 5,000,000 euros, bringing our professional liability coverage to a maximum of 15,000,000 euros per claim per year.

2. Exclusive umbrella policies

In the event of an accident involving uninsured or inadequately insured operating equipment, ECOFIP protects investors - partners in companies (SNC or SAS) - from potential civil liability claims and financial rental losses.


3. The optional G+ Guarantee to guarantee 100% of the tax reduction, come what may.

Included as an option in the subscription package, this is an internal financial and tax performance guarantee under which ECOFIP undertakes to reimburse subscribers the amount of the tax reduction if it is called into question.

As a result, profitability is reduced by two points compared with a conventional solution without this option.

How does it work?

Explication of the Girardin law

Year 1 - Subscription and contributions

Subscription form :

  1. You reserve some shares according to your tax reduction needs.

  2. You pay for the shares, formalities, and your current account contribution.

  3. You provide the information and documents required to register your application.

After your final subscription :

  1. You receive confirmation of receipt of funds

  2. We register the transfer of shares with the tax authorities.

Year 2 - Declaration of tax reduction and approval of accounts

Tax-free year - when you file your tax return :

  1. ECOFIP will e-mail you your tax documents:

    1. Pre-filled 2042 IOM form

    2. Investment certificate signed by the manager

    3. Where applicable, tax approval decision(s)

You will receive this information in May for your tax return.

During the summer, the Girardin tax reduction will be reimbursed to you directly by the tax authorities.

The DGFiP will then send you your final tax notice, including the Girardin Industriel tax reduction and any surplus carried forward, to be included in your tax return for the following year.

Legal documents:

  1. ECOFIP mails you the invitation to the 1st shareholders' meeting to approve the financial statements for the year ended December 31 of the investment year and a power of attorney to be signed electronically to appoint a proxy.

  2. The SNC tax return is available in your investor area on the ECOFIP website.


Year 3 to 5 - Life of the SNC

Approval of the financial statements and tax return of the SNC :

  1. Each year, you receive an e-mail inviting you to attend the Annual General Meeting to approve the accounts, with a power of attorney to be signed electronically if you wish to be represented.

  2. The SNC's tax return is available in your investor area on the ECOFIP website.

Income tax return:

  1. The DGFiP will send you your tax notice, which will indicate any excess tax reduction carried forward (if the amount of the reduction was greater than the tax due). 

Year 6 - End of operation

Your shares are bought back for a symbolic €0.10 each, allowing you to leave in the event of the liquidation of the SNC in which you were a partner.

If you have any questions about the specifics of the Girardin Industriel law, please don't hesitate to contact us at

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