Section 2: Operating grants without earmarking

Articles in this section · 4

L2335-2L2335-2-1L2335-3L2335-4

Article L2335-3

French General Code of Local AuthoritiesIn force
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Updated 7 Nov 2023

Where the exemptions from property tax on built-up properties, provided for in Articles 1384,1384-0 A and 1384 A, 1384 C and 1384 D of the General Tax Code, result in a substantial loss of revenue for the communes, these local authorities are entitled to compensation from the State under conditions set by decree in the Council of State.

However, the loss of revenue for local authorities resulting from the extension from fifteen to twenty-five years of the exemptions from property tax on built-up properties provided for in articles 1384 A, 1384 C and 1384 D of the General Tax Code are compensated by applying, for 2009, to the amount of these losses a rate corresponding to the difference between the total amount paid in 2008 for all the compensation mentioned in I to X of article 48 of law no. 2008-1425 of 27 December 2008 on the finances for 2009 and the total amount of this same compensation provided for this purpose for 2009 by XI of this same article.

For social rental housing benefiting from a decision to grant a subsidy or subsidised loan between 1 December 2005 and 31 December 2026, with the exception of new constructions financed (1) by means of loans referred to in sub-section 3 of section 1 of the single chapter of title III of book III of the construction and housing code, losses of revenue for municipalities resulting from the exemption from property tax on built-up properties for fifteen or twenty years provided for by articles 1384 A and 1384 C of the General Tax Code are compensated by a levy on State revenue. In this case, the compensation paid to each municipality is equal, each year, to the amount of the loss of revenue multiplied, from 2009 onwards, by a reduction rate. For 2009, this reduction rate corresponds to the difference between the total amount paid in 2008 for all the compensation mentioned in I to X of Article 48 of Finance Act no. 2008-1425 of 27 December 2008 for 2009 and the total amount of this same compensation provided for 2009 by XI of this same article. For 2010, the compensation calculated in accordance with the preceding provisions and to which the rate of change set for 2009 is applied is reduced by applying a rate corresponding to the difference between the total amount to be paid in 2009 for all of the compensation mentioned in I to VIII of Article 47 of Law no. 2009-1673 of 30 December 2009 on the finances for 2010 and the total amount of this same compensation provided for this purpose for 2010 by IX of this same article.

In respect of 2011, the compensation calculated in application of this article and to which the rate of change set in respect of 2009 and the rate of change set in respect of 2010 are applied shall be reduced by applying the rate defined in IV of Article 51 of Law no. 2010-1657 of 29 December 2010 on the finances for 2011.

For 2012, the same compensation, to which the rates of change set for 2009, 2010 and 2011 are applied, is reduced by applying the rate set for 2012 in III of Article 33 of Finance Act 2011-1977 of 28 December 2011 for 2012.

For 2013, the same compensation payments, to which the rates of change set for 2009, 2010, 2011 and 2012 are applied, are reduced by applying the rate set for 2013 in IV of Article 31 of Finance Act 2012-1509 of 29 December 2012 for 2013.

For 2014, the same compensation, to which the rates of change set for 2009, 2010, 2011, 2012 and 2013 are applied, are reduced by applying the rate provided for 2014 in IV of Article 37 of Finance Act 2013-1278 of 29 December 2013 for 2014.

For 2015, the same compensation payments, to which the rates of change set since 2009 are applied, are reduced by applying the rate provided for 2015 in III of Article 23 of Finance Act 2014-1654 of 29 December 2014 for 2015.

For 2016, the same compensation payments, to which the rates of change set since 2009 are applied, are reduced by applying the rate provided for 2016 in III of Article 33 of Law no. 2015-1785 of 29 December 2015 on finance for 2016.

For 2017, the same compensation payments, to which the rates of change set since 2009 have been applied, are reduced by applying the rate provided for 2017 in X of Article 33 of Act no. 2016-1917 of 29 December 2016 on finance for 2017.

From 2022, the rates of change set since 2009 and up to 2017 are applied to the same compensation.

Mariela Petrova

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Working with a corporate lawyer in France — Q&A

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.

Yes — most of our clients are foreign suppliers, investors or holding entities. We bridge the gap between French law and your home jurisdiction's expectations and deliver everything bilingually.

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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We work on fixed fees for clearly scoped engagements (incorporation, contract drafting, audits) and on monthly retainers for ongoing advisory. Hourly billing is the exception, not the default. You always know the cost before work starts.

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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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15+ Years In Corporate Practice

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