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France Agriculture Tax Guide

French agricultural taxation. The guide covers: the Bénéfices Agricoles (BA) regime — the agricultural income is taxed under the BA category (the "régime des bénéfices agricoles"); the BA regime applies to all farming activities (the "activités agricoles par nature" — cultivation, livestock, forestry, market gardening, viticulture, and the "activités agricoles par assimilation" — agri-tourism, equestrian activities, farm processing); the taxpayer can choose between three regimes: (a) the micro-BA — a standard deduction of 71% on the gross agricultural income (the "abattement forfaitaire de 71%"), capped at €85,800 of gross income; (b) the régime réel simplifié — the deduction of actual expenses, with a simplified balance sheet; (c) the régiel réel normal — the full accounting regime; the exemptions and reductions — the "exonération des jeunes agriculteurs" (young farmers) — a provisional exemption for the first 5 years: 100% exemption for the first year, 67% for the second, 33% for the third, 0% for the fourth and fifth; the "exonération des JA" applies to the BA income and the CFE (Cotisation Foncière des Entreprises); the "exonération pour les JA" requires the farmer to hold the "diplôme d'exploitation" (the CAP or BTA in agriculture) and the "plan d'installation" approved by the regional authorities; the taxation of CAP subsidies — the Common Agricultural Policy (PAC) subsidies are taxable as agricultural income (the "aides PAC" — the direct payments, the "paiements de base," the "paiements verts" — are included in the BA); the subsidies are taxed in the year they are received (the "encaissement"); the "indemnités compensatoires de handicaps naturels (ICHN)" are also taxable; the succession rules for agricultural land — the "exonération des droits de succession pour les biens ruraux" — the agricultural land and buildings can benefit from a 75% exemption from inheritance tax (the "exonération partielle des droits de mutation à titre gratuit") if the heirs undertake to keep the land in agricultural use for at least 5 years (the "engagement de conservation" — the pacte Dutreil rural); the 75% exemption applies to the value of the land and the buildings, under the same conditions as the Pacte Dutreil for companies (the "pacte Dutreil" requires a collective commitment of the heirs to keep the assets for 2 years and an individual commitment for 4 years); the TVA in agriculture — farmers can choose between: (a) the "remboursement forfaitaire" (RBF — the flat-rate TVA refund): the farmer receives a fixed percentage of the turnover as a TVA refund (approximately 2.8% for crops, 3.2% for livestock), (b) the "TVA sur option" (the voluntary TVA registration): the farmer charges TVA at the standard rate (20%) on sales and can deduct the input TVA (the "TVA déductible" on purchases).

French agriculture benefits from generous tax exemptions and the specific BA regime. All amounts in Euros (EUR). For related reading, see our Corporate Tax Guide → and VAT Guide →.

Bénéfices Agricoles (BA)

  • Micro-BA — 71% deduction: The micro-BA regime applies to farmers with gross income below €85,800 (2026). The 71% standard deduction covers all expenses (no need to justify actual costs). The remaining 29% of the gross income is added to the other household income and taxed at the progressive IR rates.
  • Régimes réels: The réel simplifié (RSI) is available for income between €85,800 and €356,000. The réel normal applies above €356,000. The réel regimes require the farmer to file a balance sheet and a profit-and-loss account. The deductible expenses include: seeds, fertilisers, animal feed, wages, depreciation of machinery and buildings, loan interest, insurance, and the taxe foncière.

Young Farmers (Jeunes Agriculteurs)

  • Exoneration schedule: Young farmers (under 40 with a "plan d'installation") benefit from a progressive exemption from BA taxation: (a) Year 1: 100% exemption, (b) Year 2: 67% exemption, (c) Year 3: 33% exemption, (d) Years 4–5: 0% exemption. The exemption also applies to the CFE (the local business tax).

For the Pacte Dutreil rural and the succession rules, see our Inheritance and Gift Tax Guide →. For the CAP subsidies and the PAC obligations, see the French Ministry of Agriculture website (agriculture.gouv.fr).