Since the adoption of Law no. 2025-797 of 11 August 2025, Mayotte benefits from a free trade zone regime unprecedented among French territories: 100% exemption on corporate and income taxes, property tax and territorial economic contribution (CET) for eligible SMEs, for up to five years. The goal: restart an economy devastated by Cyclone Chido.
Unprecedented exemptions in French overseas fiscal history
Until this reconstruction programming law, the maximum exemption rate was capped at 50%, limited to €150,000 in tax savings. The new scheme removes this cap for SMEs with fewer than 250 employees and annual turnover below €50 million — covering most of Mayotte's business fabric.
The exemptions apply over two windows: 2025 to 2029 for income and corporate taxes, and 2026 to 2030 for property and territorial economic taxes. Almost all sectors are eligible — industry, commerce, crafts, agriculture, tourism, construction, services and liberal professions — subject to EU Regulation 651/2014.
A strong signal to regional investors
For Indian Ocean entrepreneurs — from Réunion, Mauritius or Comoros — this unprecedented fiscal window represents a rare opportunity to establish a foothold in a territory under reconstruction. Demand for construction materials, healthcare services, logistics and digital equipment has been structurally high since Chido struck in December 2024.
Regional chambers of commerce have already organised exploratory missions, and the Indian Ocean Commission (IOC) is considering including Mayotte in its upcoming regional cooperation programmes.
Why it matters
Mayotte's free zone is a real-scale laboratory for French overseas reconstruction policy. If the scheme successfully attracts durable investments — not just opportunistic operations — it could serve as a model for other vulnerable island territories in the region. The real test will come when the tax framework is reviewed in 2030.
Sources: Le Journal de Mayotte (4 March 2026); Law no. 2025-797, Official Journal, 12 August 2025.