Wealth tax reduction entitlements

You can claim wealth tax reductions in consideration of investments in SMEs and/or donations to certain public interest bodies.

Wealth tax reduction for investments in SMEs:

Capped at €45,000:

  • For investments in the capital of SMEs:

These investments may be made directly or indirectly via a holding company subject to certain conditions.
The reduction is 50% of amounts paid over. The reduction cap is €45,000 for investments made from the deadline for filing return no. 2042 for income in year N-2 or return ISF N-1 (except for residents of Monaco and persons residing abroad) up to the deadline for filing your return no. 2042 for income in year N-1 or return ISF N. As from 2016, for direct investments, the SIREN number of the beneficiary company must be stated on the return together with the amount of the corresponding investment.

  • For investments via FIPs (local investment funds) and FCPIs (innovation-focused mutual funds):

This reduction is 50% of investments, capped at €18,000 for subscriptions made in the fund from the deadline for filing return no. 2042 C for income in year N-2 or return ISF N-1 (except for residents of Monaco and persons residing abroad) up to the deadline for filing your return no. 2042 for income in year N-1 or return ISF N.

Wealth tax reduction for donations to certain public interest bodies:

The reduction is 75% of amounts donated, capped at €50,000.
If you claim entitlement to both the reduction for investments in SMEs and for donations, the overall annual amount is capped at €45,000.

You can find a list of public interest bodies eligible for the reduction in the instructions or in the official public finances bulletin by following the link.

Non-combination with income tax reductions

  • Donations to certain public interest bodies: The reduction of wealth tax cannot be combined with the reduction of income tax.

  • Investments in the capital of SMEs: The reduction of wealth tax cannot be combined with the reduction of income tax.