Since July 1, the new France Ruralités Revitalisation (FRR) scheme has replaced the former Zones de Revitalisation Rurale (ZRR). This new zoning scheme aims to revitalize rural areas in difficulty, by offering attractive tax and social benefits to companies setting up there.
Maintaining development aid for rural areas
The reform of rural revitalization zones (ZRR) was adopted by the Finance Act for 2024. In force since July 1, with a new zoning called "France Ruralités Revitalisation", it aims to boost the attractiveness of rural areas by granting tax and social security exemptions (exemptions from corporate income tax, business property tax and property tax on built-up properties) to companies setting up there.
FRR zones also provide support to local authorities through :
- an increase in the overall operating grant (30% bonus for the "bourg-centre" fraction and 20% bonus for the "péréquation" fraction of the rural solidarity grant),
- a bonus on the France Service grant,
- facilitating the opening of pharmacies,
- a postal equalization surcharge.
Two levels of FRR zoning
In concrete terms, France Ruralités Revitalisation replaces the ZRR, the Bassins d'Emploi à Redynamiser (BER) and the Zones de Revitalisation des Commerces en Milieu Rural (ZORCOMIR).
The reform provides for two types of zoning:
- FRR or FRR "base" zones: these concern municipalities with fewer than 30,000 inhabitants located in a public inter-municipal cooperation body (EPCI), a département or a catchment area meeting certain population density and income criteria;
- FRR+" zones: dedicated to communities in difficulty. This type of zoning will be introduced from 2025.
These zones are defined on the basis of population density and per capita disposable income. Zoning is subject to review every 6 years.
For the list of communes in FRR and ZRR zones, please refer to the decrees of June 19, 2024 or to the simulator.
Benefits for companies in FRR zones
As mentioned above, companies located in FRR zones are eligible for tax and social security exemptions.
To be eligible for tax exemptions, they must :
- Less than 11 employees ;
- Carry on an industrial, commercial, craft or liberal activity;
- Be created or taken over between July 1, 2024 and December 31, 2029.
These exemptions apply in full for 5 years, then on a sliding scale for the following three years.
To be eligible for social exemptions, they must :
- Less than 50 employees;
- Carry on an industrial, commercial, craft, agricultural or non-commercial activity;
- Hiring in an establishment located in the RIF ;
- Not to have dismissed employees for economic reasons in the 12 months prior to hiring.
To facilitate their financial and administrative management, these companies should also consider opening a business bank account tailored to their specific needs. To find out whether a commune is located in an FRR or ZRR zone, you can alsouse the online simulator provided on the public service website.