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Articles

Why Will France Remain Appealing to Foreign Investors in 2018?

Written by: Bridgewest

It has become a tradition for France to release the Attractiveness Scoreboard which has reached its 8th year of success. The report is issued by the French Treasury Directorate in cooperation with the Ministry of Economy and the Commission for Regional Equality and it provides valuable information on the most attractive points of doing business in France. Our company formation consultants in France can help those who want to start a business here.

Aspects covered by the France Attractiveness Scoreboard

The report is a thorough examination of the factors leading to France being an attractive country for foreign investors in comparison with other countries. In Europe, the most significant competitor of France is the United Kingdom.

The factors which make the country attractive, according to the 2017 Attractiveness Board, are foreign talented employees of local companies, the large domestic market, the infrastructure which makes an excellent import/export hub, the high quality of life and the central location. The local workforce also plays an important role in France’s attractiveness level for foreign investors.

The last data on foreign investments which dates back to 2016, indicate France is on the 14th position out the 20 most attractive countries in the world in terms of FDI.

If you want to open a company in France and need information on the laws supporting foreign investments, our local representatives can advise you.

Key measures to be undertaken by the government

One of the most important sections of the France Attractiveness Board is the measures undertaken or to be completed by the government to enhance the country’s level of attractiveness in the coming years. Among these are the reforms related to employment and unemployment insurance benefits.

For the next years, the government plans on reducing the corporate tax rate from the current 33.3% to 25% until 2022. The wealth tax will be replaced by a real estate tax at a flat rate of 30%. The payroll taxes will also be reduced in the coming years. Also, the competitiveness and employment tax credit will be transformed into an all-time reduction for social security contributions paid by employers starting with 2019.

For information on the current tax situation in France, please contact our company registration advisors.

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