Since March 3, 2026, Mayotte has benefited from an unprecedented global free zone regime: 100% tax exemptions for SMEs, a lifeline for an economy still reeling from Cyclone Chido in December 2024.
An exceptional tax framework
Established by Law No. 2025-797 of August 11, 2025, Mayotte's global free zone (ZFG) regime extends tax exemptions previously reserved for next-generation enterprise zones (ZFANG) to all business sectors. Eligible SMEs — under 250 employees, turnover below €50 million — benefit from 100% relief on corporate tax (IS) and income tax (IR) until December 31, 2029, compared to 50% under the previous scheme. Property taxes (TFPB) and business levy contributions (CFE) are also exempt through 2030.
A direct response to Cyclone Chido
Cyclone Chido struck the archipelago on December 14, 2024, with winds exceeding 220 km/h, causing widespread devastation: thousands of homes destroyed, public infrastructure damaged, and the local economy brought to its knees. "This measure aims to revive Mayotte's economy after the destruction caused by Cyclone Chido," states the legislative text. As part of the broader "Mayotte Debout" reconstruction plan, the government wants to prevent financially weakened businesses from closing permanently. Full reconstruction is targeted by 2030.
Key dates to remember
To qualify, businesses must be based in Mayotte by December 31, 2028. IS/IR exemptions cover fiscal years opening until December 31, 2029, and the scheme will be repealed on January 1, 2031. Excluded sectors include activities subject to EU state aid notification — notably certain transport and large-scale retail activities.
Why this matters
Mayotte records the lowest GDP per capita of any French territory. The global free zone sends a clear signal to investors: the French state is using fiscal policy to compensate for infrastructure gaps and attract private capital into reconstruction. For local entrepreneurs, it is above all an opportunity to rebuild equity and rehire. Regional economists estimate that without such fiscal levers, economic recovery could take a decade.