What is the overall cap on tax loopholes?
Verified 17 April 2024 - Directorate for Legal and Administrative Information (Prime Minister)
The overall cap on tax benefits (tax niches) is to limit the amount of tax benefits you can receive each year for the purpose of calculating income tax.
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General case
For the 2024 taxation of your 2023 income, your total tax benefits cannot provide you with a reduction in the amount of tax owing greater than €10,000.
Example :
For a tax shelter which benefits from home employment tax credit of €6,000 and a tax reduction for Pinel rental investment of €5,000.
€6,000 + €5,000 = €11,000.
The amount exceeds the overall cap limit.
Your tax benefit is therefore limited to €10,000.
FYI
the cap is the same for all tax households, whether you are alone or in a relationship, with or without a dependent.
Tax advantages the affected may take one of the following forms:
- Deduction from your taxable income
- Tax reduction
- Tax credit
The global cap applies to tax benefits granted in return for a benefit or investment.
The overall cap does not apply the following tax advantages:
- Benefits related to your personal situation
- Benefits of pursuing an objective of general interest without consideration
Purpose of the tax advantage | Global cap |
|---|---|
Yes | |
Yes | |
Rental investment | Yes |
Forestry investment | Yes |
Subscription to the capital of SOFICA | Yes |
Subscription to SME capital | Yes |
Overseas investment | Yes |
No | |
No | |
Effects of family quotient | No |
No | |
Assistance for the elderly/disabled | No |
Please note
for a complete list of the tax benefits affected by the cap, see the practical income tax brochure. This document also informs you about the application and calculation of the cap.
Overseas investment
For the 2024 taxation of your 2023 income, if you also made investments overseas, the total of your tax benefits cannot provide you with a reduction in the amount of tax owing greater than €18,000.
FYI
the cap is the same for all tax households, whether you are alone or in a relationship, with or without a dependent.
Tax advantages the affected may take one of the following forms:
- Deduction from your taxable income
- Tax reduction
- Tax credit
The global cap applies to tax benefits granted in return for a benefit or investment.
The overall cap does not apply the following tax advantages:
- Benefits related to your personal situation
- Benefits of pursuing an objective of general interest without consideration
Purpose of the tax advantage | Global cap |
|---|---|
Yes | |
Yes | |
Rental investment | Yes |
Forestry investment | Yes |
Subscription to the capital of SOFICA | Yes |
Subscription to SME capital | Yes |
Overseas investment | Yes |
No | |
No | |
Effects of family quotient | No |
No | |
Assistance for the elderly/disabled | No |
Please note
for a complete list of the tax benefits affected by the cap, see the practical income tax brochure. This document also informs you about the application and calculation of the cap.
Investment Sofica (cinema)
For the 2024 taxation of your 2023 income, if you have made investments in the cinema (Sofica), the total of your tax benefits cannot give you a reduction in the amount of tax due greater than €18,000.
FYI
the cap is the same for all tax households, whether you are alone or in a relationship, with or without a dependent.
Tax advantages the affected may take one of the following forms:
- Deduction from your taxable income
- Tax reduction
- Tax credit
The global cap applies to tax benefits granted in return for a benefit or investment.
The overall cap does not apply the following tax advantages:
- Benefits related to your personal situation
- Benefits of pursuing an objective of general interest without consideration
Purpose of the tax advantage | Global cap |
|---|---|
Yes | |
Yes | |
Rental investment | Yes |
Forestry investment | Yes |
Subscription to the capital of SOFICA | Yes |
Subscription to SME capital | Yes |
Overseas investment | Yes |
No | |
No | |
Effects of family quotient | No |
No | |
Assistance for the elderly/disabled | No |
Please note
for a complete list of the tax benefits affected by the cap, see the practical income tax brochure. This document also informs you about the application and calculation of the cap.
Who can help me?
Find who can answer your questions in your region
To contact the local service managing your file (contact information is available on your tax notices and tax returns)
Department in charge of taxes (treasury, tax department...)For general information
Tax Information Service
By telephone:
0809 401 401
Monday to Friday from 8:30 am to 7 pm, excluding public holidays.
Free service + call price
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Ministry of Finance