This end of the year will be profitable for those ready to invest in unlisted European innovative companies through innovation mutual funds (FCPI), collective management products designed to provide a tax advantage to savers.
You in fact deduce 25% of the amount invested in an FCPI of your 2025 income tax, i.e. 1000 euros for an investment of 4000 euros. This in the limit of 12,000 euros subscribed by a taxpayer and 24,000 euros for married or civil partnership couples. Let an rtax reduction of 3000 euros for a taxpayer or 6000 euros for a couple.
Up to 30% tax reduction
Better still, some FCPIs offer tax reductions that can approach 30% focusing on the young innovative companies (JEI). These FCPI JEI allow you to invest up to 75,000 euros for a single person (150,000 euros for a married or civil partnership couple), i.e. income tax reduction of 22,500 euros for a single person (45,000 euros for a couple) which is added to the standard FCPI tax exemption ceilings.
However, most of them do not reach the 30% tax reduction rate due to more restrictive criteria than those of FCPIs: the France Invest association only lists 4,500 eligible innovative companies (less than 2000 employees…). Several FCPIs such as that of Eurazeo therefore combine companies eligible for the SME income tax reduction (known as SME IR) and those for the JEI IR reduction. Finally the Local investment funds (FIP) invested in Corsica, allow an income tax reduction of 30%.
Tax reduction rates at their highest
These so-called IR PME or Madelin systems were initiated in 1996 – article 199 terdecies-0 A of the General Tax Code (CGI). They are increasingly restricted: the reduction to IR is set to disappear on standard FCPIs in 2026, as it has already disappeared this year for FIPs in mainland France. But, good news, the Senate voted this Monday, December 15 to maintain the FCPI JEI and FIP Corse systems.
However, the end of 2025 should see a jump, because, paradoxically, the tax reduction rate was raised to its highest at 25% for subscriptions made since September 28while this rate remained at 18% for subscriptions made between January 1 and September 27, 2025.
Risky products
In addition, the tax reduction upon subscription is coupled with a exemption from taxation on capital gains on exit. Nevertheless the social security contributions will be due on any capital gains at the end of the term, at the rates in force. In return, the tax authorities ask that you remain invested in the FCPI at least five years. But management companies often plan for a longer lifespan, of 6 or 7 years, often extendable when they are unable to get the best price from certain residual holdings.
Finally, you should know that their profitability is not guaranteed. Unlisted companies can experience contrasting fates. And the risks for JEIs are even greater. It is therefore advisable to multiply small tickets (from 1000 euros) between several funds. And in any case, act quickly: a large number of these funds have set at December 19, 2025 subscription deadline.
Pay attention to management fees
These products suffer from management fees (3 to 4%), which are two to three times higher than those of listed equity funds, and significant entry fees (up to 5%) which are not deductible… but negotiable.
