Paragraph 4: Development allowance and equalisation allowance for overseas municipalities

Articles in this section · 2

Article L2334-23-1

French General Code of Local AuthoritiesIn force

Updated 7 Nov 2023

I. - From 2020, the share of the development grant mentioned in the third paragraph of Article L. 2334-13 and intended for the communes of the overseas departments, New Caledonia, French Polynesia, the territorial collectivity of Saint-Pierre-et-Miquelon and the territorial constituencies of Wallis and Futuna comprises a development grant for the overseas communes and, with regard to the communes of the overseas departments, an equalisation grant.

This share is calculated by applying to the sum of the amounts of the national equalisation grant, the rural solidarity grant and the urban solidarity and social cohesion grant the ratio existing, according to the last population census, between the population of the overseas municipalities and the population of all the municipalities. This ratio is increased by 63% in 2023.

II. - The development allowance for overseas communes comprises:

1° An envelope intended for communes in overseas departments, equal from 2023 to 65% of the amount of the two sub-envelopes paid in 2019 to these communes pursuant to the fourth paragraph of Article L. 2334-13 as it stood prior to Loi no 2019-1479 du 28 décembre 2019 de finances pour 2020. These two sub-envelopes are divided between the overseas departments in proportion to their population, as defined in article L. 2334-2, and then between the municipalities under conditions set by decree in the Conseil d'Etat. The share accruing to the communes of French Guiana is increased by €1,500,000, divided between the communes that benefited the previous year from the fraction of the communal mining royalty provided for in fourth paragraph of article 312 of appendix 2 to the general tax code, and apportioned between them in proportion to their population ;

2° An envelope intended for the communes of New Caledonia, French Polynesia, the territorial collectivity of Saint-Pierre-et-Miquelon and the territorial constituencies of Wallis and Futuna calculated by applying to the sum of the amounts of the national equalisation allowance, the rural solidarity grant and the urban solidarity and social cohesion grant, the ratio, increased by 35%, between the population of these municipalities and districts and the population of all municipalities and districts, according to the most recent population census. This envelope is broken down into two sub-envelopes: a sub-envelope corresponding to the application of this demographic ratio to the urban solidarity and social cohesion grant and the rural solidarity grant, and a sub-envelope corresponding to the application of this demographic ratio to the national equalisation grant. They are distributed in accordance with the conditions laid down by decree in the Conseil d'Etat. The share allocated to the communes of Saint-Pierre-et-Miquelon is increased by 527,000 € for the commune of Saint-Pierre and 110,000 € for the commune of Miquelon-Langlade.

III. - The equalisation allowance for municipalities in the overseas departments corresponds to the difference between the quota mentioned in I and the development allowance paid to overseas municipalities in application of II.

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Mariela Petrova

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Any time a strategic decision changes how the company is owned, governed or contractually bound — incorporation, fundraising, M&A, restructuring, shareholder agreements, or major commercial contracts. Earlier engagement always costs less than later remediation.

A notary (notaire) is a public officer who authenticates specific deeds (mainly real-estate transfers and certain family-law acts). A corporate lawyer (avocat) advises on strategy, negotiates and drafts company documents, and represents you in disputes. The two roles complement rather than overlap.

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The SAS (Société par Actions Simplifiée) is the default choice for most international structures: flexible governance, single shareholder allowed, no minimum capital, and works cleanly with foreign holding entities. We assess SARL, SA, SCI on the merits when the situation calls for it.

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Absolutely. We routinely coordinate with your in-house counsel, expert-comptable or notaire — pragmatic collaboration is the norm, not the exception. We send them everything they need to do their part without duplicating work.

Mariela Petrova

Mariela Petrova

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