Tax Measures to Support Households and Businesses

No less than €1.5 billion in additional funding will be allocated to France’s overseas territories in the 2026 State and Social Security budgets. According to Minister Delegate Naïma Moutchou, this funding demonstrates the Government’s commitment to supporting these territories despite a tight budgetary context.

While Prime Minister Sébastien Lecornu invoked Article 49.3 to pass the Finance Bill, the Minister sought to reassure elected officials from the overseas territories. She explained that she had defended the overseas territories “line by line” to prevent them from being penalized by budget cuts.

The Overseas Territories mission will receive an increase of over €1 billion, bringing the total to over €19 billion allocated to these communities. These funds will be used to boost employment, support businesses, and improve living conditions in each territory.

In Mayotte, the LODEOM scheme will be implemented starting in July 2026, while maintaining the expanded CICE tax credit, representing an additional investment of €32 million. A budget of €100 million will also be allocated to strengthen the healthcare system and combat the shortage of medical professionals in certain areas.

The Overseas Emergency Relief Fund will be increased by €5 million to help the territories better cope with natural disasters. Furthermore, VAT on air and sea transport between overseas territories will be reduced to 0%, and an additional €1 million will be allocated to support the Observatories of Prices, Margins, and Incomes (OPMR).

Finally, €674 million will be dedicated to reconstruction and territorial interventions. For Naïma Moutchou, this budget marks a step towards fairness and responsibility, with concrete resources to meet the needs of the overseas territories.