What is the overall cap on tax loopholes?
Verified 01 January 2026 - Public Service / Directorate of Legal and Administrative Information (Prime Minister)
The overall cap on tax benefits (tax loopholes) is to limit the amount of tax benefits you can receive each year for income tax purposes.
The amount of the cap depends on the tax benefits you receive:
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General case
For the 2026 taxation of your 2025 income, the total of your tax benefits cannot provide you with a decrease in the amount of tax due greater than €10,000.
Example :
For a tax home which benefits from a home employment tax credit from €6,000 and a tax reduction for rental investment Pinel from €5,000.
€6,000 + €5,000 = €11,000.
The amount exceeds the overall cap limit.
Your tax benefit is therefore limited to €10,000.
FYI
The cap is the same for all tax households, whether you are alone or in a relationship, with or without a dependent.
Tax benefits concerned may take one of the following forms:
- Deduction from your taxable income
- Tax reduction
- Tax credit.
The overall cap applies to tax benefits granted in return for a service or investment.
The overall cap does not apply the following tax advantages:
- Benefits related to your personal situation
- Benefits of pursuing an objective of general interest without consideration.
Purpose of the tax benefit | Overall cap |
|---|---|
Yes | |
Yes | |
Rental investment | Yes |
Forest investment | Yes |
Subscription to SOFICA's share capital | Yes |
Subscription to SME capital | Yes |
Overseas investment | Yes |
No | |
No | |
Effects of family quotient | No |
No | |
Support for the elderly/disabled | No |
Please note
For an exhaustive list of tax benefits covered by the cap, please consult the practical income tax brochure. This document also informs you about the application and calculation of the cap.
Overseas investment
For the 2026 taxation of your 2025 income, if you have also made overseas investments, the total of your tax benefits cannot provide you with a decrease in the amount of tax due greater than €18,000.
FYI
The cap is the same for all tax households, whether you are alone or in a relationship, with or without a dependent.
Tax benefits concerned may take one of the following forms:
- Deduction from your taxable income
- Tax reduction
- Tax credit.
The overall cap applies to tax benefits granted in return for a service or investment.
The overall cap does not apply the following tax advantages:
- Benefits related to your personal situation
- Benefits of pursuing an objective of general interest without consideration.
Purpose of the tax benefit | Overall cap |
|---|---|
Yes | |
Yes | |
Rental investment | Yes |
Forest investment | Yes |
Subscription to SOFICA's share capital | Yes |
Subscription to SME capital | Yes |
Overseas investment | Yes |
No | |
No | |
Effects of family quotient | No |
No | |
Support for the elderly/disabled | No |
Please note
For an exhaustive list of tax benefits covered by the cap, please consult the practical income tax brochure. This document also informs you about the application and calculation of the cap.
Investment Sofica (cinema)
For the 2026 taxation of your 2025 income, if you have made investments in cinema (Sofica), the total of your tax benefits cannot give you a decrease in the amount of tax due greater than €18,000.
FYI
The cap is the same for all tax households, whether you are alone or in a relationship, with or without a dependent.
Tax benefits concerned may take one of the following forms:
- Deduction from your taxable income
- Tax reduction
- Tax credit.
The overall cap applies to tax benefits granted in return for a service or investment.
The overall cap does not apply the following tax advantages:
- Benefits related to your personal situation
- Benefits of pursuing an objective of general interest without consideration.
Purpose of the tax benefit | Overall cap |
|---|---|
Yes | |
Yes | |
Rental investment | Yes |
Forest investment | Yes |
Subscription to SOFICA's share capital | Yes |
Subscription to SME capital | Yes |
Overseas investment | Yes |
No | |
No | |
Effects of family quotient | No |
No | |
Support for the elderly/disabled | No |
Please note
For an exhaustive list of tax benefits covered by the cap, please consult the practical income tax brochure. This document also informs you about the application and calculation of the cap.
Who can help me?
Find who can answer your questions in your region
To contact the local service managing your file (contact information is on your tax notices and income tax returns)
Tax department (treasury, tax department...)For general information
By phone:
0809 401 401
Monday to Friday from 8:30 am to 7 pm, excluding public holidays.
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Ministry of Finance