Tax benefits and subsidies of Corsica

Advantages

Taxes in Corsica are lower than those on the continent because the island has a GDP below average. Thus the corporate tax, the business tax are reduced. Just like the VAT, the property tax, the tax on oil imported products. There is no inheritance right. Because of these tax benefits, the shortfall is about $271 million per year for France.

It can also import products invoiced without taxes from Italy. For a long time, agricultural products were exported duty-free to mainland France.

The other French regions do not have these advantages.

Subsidies

Corsica also benefits from the territorial continuity endowment. This represents an additional aid of $295 million.

That is a total of tax benefits and allowances of $566 million per year.

Corsica also receives provisions from the European Structural Funds. Any region with a GDP below 75% of the EU average can receive this compensation. For the 2014-2020 period: $136.6 million for the Corsica FEDER-ESF Operational Program, $171.4 million for the Corsica rural development program FEADER, $9.2 million for the national Operational Program ESF. That is $52.8 million per year.

Corsica receives $619.2 million from France and Europe each year.

If Corsica becomes independent, it will lose all these aids. The only way for the island to make up for the loss would be to become a tax haven. However, nowadays the world is starting to wage war against these famous tax havens.

Source: Europ’Act.


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