Space Law 2024 Comparisons

France is involved in multilateral discussions concerning the space sector. In compliance with its international obligations, France has adopted national legal instruments that include measures relating to launching and operating space objects. Moreover, France participates in discussions at the multilateral level, including the United Nations, at the Committee on the Peaceful Uses of Outer Space and the Conference on Disarmament. France also has a varied industry that provides services to both its national and its international partners. It includes civil, scientific, military and governmental activities.

The French space legal framework is broadly stable (see below) but is refined/updated from time to time and may again be updated to comply with new space activities and applications and to include technical regulations fit to the industry’s needs. As an EU member state, France will be impacted by legislative changes brought about at EU level by the announced EU Space Law if and when passed.

The French space industry is closely linked to the nation’s aviation industry, and generates substantial revenue across civil, military and export markets. Major manufacturers such as Dassault Aviation and the Airbus, Thales and Safran groups are the main systems integrators in the defence aerospace industry, shaping the ecosystem directly or through joint ventures. France also has an integrated launch services provider, ArianeGroup, which faces challenges due to the decreasing launch costs driven by NewSpace entrants leveraging institutional contracts on a scale dwarfing those of European manufacturers.

The French Eutelsat Group is one of the world’s leading satellite telecommunications operators and has been a European pioneer in space-based infrastructure for the transmission of television and radio content for more than 40 years. It works in concert with other national operators to deploy satellites across the country and offers a number of services. Moreover, it recently merged with OneWeb to expand its satellite offering.

Moreover, large groups such as Airbus also provide remote detection and satellite imagery services.

France is also much involved in European space research and development through the French Space Agency – ie, the National Centre for Space Studies (Centre National d’Etudes Spatiales, CNES) – and strong partnership links with the European Space Agency (ESA) – eg, the ESA’s Business in Space Growth Network accelerator of innovative projects being run by the Institute for Space Medicine and Physiology (MEDES), which for nearly 35 years, has sought to maintain and develop French know-how in space medicine and physiology and to promote the applications of space research for healthcare).

The French legal system is based on civil law. France has a legal framework applicable to space activities in the form of the Space Operations Act, which dates from 2008. There are also texts relating to the Guiana Space Centre and the conduct of CNES’s activities. Some guidelines govern certain satellite services, in particular the use of space data. French space law is essentially based on rules and the codification of measures dedicated to the space sector, notably including the French Research Code, the Post and Communications Code, the Intellectual Property Code, and the Defence Code. The following texts are among those that structure French space law:

• Law No 2008-518 of 3 June 2008, relating to space operations (LOS);
• Decree No 2024-625 of 28 June 2024, relating to space operations authorisation;
• Order of 28 June 2024, relating to the composition of the three parts of the authorisation file;
• Order of 28 June 2024, relating to technical regulations;
• Decrees No 2022-233 and No 2022-234 of 24 February 2022, relating to space data, defence considerations and the authorisation and management of space operations;
• Decree No 2017-1619 of 27 November 2017, publishing the agreement between the Government of the French Republic and the European Space Agency on the Guiana Space Centre and associated services;
• Decree No 2009-643 of 9 June 2009, relating to authorisations issued;
• Article L. 611-1 and L. 613-5 of the French Intellectual Property Code, which acknowledge patentability of invention achieved in space; and
• L. 613-5 of the French Intellectual Property Code which states that patent exclusive rights do not apply to objects intended to be launched into outer space introduced into French territory.

The commercial space industry is also particularly exposed to export control regulations, most space technologies being listed as either military or dual-use items under applicable laws (for EU-origin items, respectively under the national munition list and Regulation (EU) 2021/821 of the European Parliament and of the Council of 20 May 2021 setting up an EU regime for the control of exports, brokering, technical assistance, transit and transfer of dual-use items). The complexity and extraterritorial effect of some national export control laws (in the case of the US International Traffic in Arms Regulations and Export Administration Regulations, for example) may create a substantial regulatory burden and trigger important compliance risks with consecutive penalties for companies and their managers. Among other things, releasing technical data and stuff training, tests and maintenance and repair operations can all be deemed as export or re-export. It is thus crucial that export control is taken care of in the commercial decision-making process in the initial stages of project design.

The French legal landscape is evolving under the influence of EU law, including with regard to data governance, data spaces, AI, cyber or the awaited EU Space Law that may be adopted in the coming months.

The French state is an operator, a facilitator and regulator of space activities. It participates in the work of the National Centre for Space Studies (CNES) and also has dedicated government military capabilities. It supports companies in the early stages of their activities, to ensure that their operations comply with the national legal framework. Additionally, the French state carries out scientific activities, notably in co-operation with other states or international organisations, as is the case with the European Space Agency, for example. While the French Ministry of Economy bears primary responsibility for space activities (including by authorising launches in outer space), the Ministry of Higher Education and Research oversees certain aspects, and the Ministry of the Armed Forces retains prerogatives concerning strategic and military operations in relation to outer space.

The authorisation and ongoing supervision of space activities is carried out under the Law on Space Operations, which dates back to 2008. Operators are subject to an authorisation from the French Ministry of the Economy on the basis of a number of factors, including criteria relating to internal organisation, technical capabilities and financial resources, in order to ensure the reliability of their project. CNES supervises the review of launch authorisation applications and the work of the operators. With regard to their space objects: dedicated technical regulations exist to ensure their reliability and meeting technical criteria.

The administrative part of the authorisation is where the applicant is to be identified. They also need to provide moral, financial and professional guarantees, which themselves need to be assessed. The technical part includes a description of the space operation, systems and procedures envisaged. The third part is where the mission of the payload and its characteristics are described, while checking that the operation is not likely to compromise national defence interests.

France’s activities with regard to the distribution of radio frequencies fall within the framework of the International Telecommunications Union (ITU). The National Frequency Agency (Agence Nationale des Fréquences, ANF) provides stakeholders in space activities with a number of models to be completed in order to meet the requirements for the distribution of radio frequencies in orbit. This enables France to co-ordinate its national activities and reduce the risk of interference between space activities. The ANFR manages requests for frequency assignments relating to satellite systems. More specifically, it receives French requests, checks that they are compatible with the Radio Regulations and the National Table of Frequency Band Allocations, and then sends them to the ITU. ARCEP, the French regulatory authority for electronic communications, post and telecommunications, manages the market for satellite communications services.

Dispute resolution mechanisms are regularly based on diplomatic procedures within the ITU.

In France, ArianeGroup provides launch services for governmental and non-governmental entities. Whether the activity is public or private, France provides its nationals, but also its international partners in French Guiana, a launch platform has been set up and is subject to specific regulations and supervision by CNES, while authorisations are granted by the French State.

France has signed and ratified the main international legal instruments relating to outer space, including the Outer Space Treaty (1967), the Rescue Agreement (1968), the Liability Convention (1976), and the Convention on Registration (1977). France has also signed – but not ratified – the Moon Agreement. Furthermore, France has implemented the Space Debris Mitigation Guidelines adopted by the United Nations Committee on the Peaceful Uses of Outer Space (UN COPUOS), which include measures to minimise the creation of debris (ie, passivation and de-orbiting of satellites at the end of their lives). Moreover, France is also a party to the Guidelines for the Long-term Sustainability of Outer Space Activities, also adopted by the UN COPUOS, which aim to promote responsible practices when conducting space activities to ensure their sustainability and safety. France complies with several of the recommendations of these guidelines. It also works with other countries and entities to enhance the safety of space activities and share critical data on space conditions and orbital events.

Space operators must obtain authorisation from the French government before carrying out space activities. This authorisation is granted after a rigorous assessment of the activities’ compliance with international and national obligations. CNES is responsible for monitoring space activities to ensure that they comply with safety standards and international obligations.

The French state is responsible for space activities carried out by its entities, whether public or private. This means that, in the event of damage caused by a French space activity, the state can be held liable at the international level. The 2008 LOS provides a mechanism for transferring liability from the state to private operators. This enables the state to protect itself financially by transferring part of the liability to the companies carrying out space operations. However, this transfer is limited and subject to strict conditions. Companies must demonstrate their financial capacity to cover potential liabilities. The law also allows operators to include liability clauses in their contracts with partners and subcontractors. This includes indemnification and limitation of liability clauses aimed at clarifying respective responsibilities in the event of damage. CNES plays a crucial role in the implementation of this law. It is responsible for preparing the issuance of authorisations for space operations and checking that operators comply with financial and insurance requirements.

Insurance Requirements

France imposes strict insurance and liability regulations for space activities aimed at providing a framework and security for this constantly evolving sector. French nationals and companies carrying out space activities under French sovereignty must be covered by insurance or have other financial guarantees approved by the competent authority. The 2008 LOS establishes a liability ceiling for space operators. Above this ceiling, the State guarantees cover for damage depending on the phase of occurrence (either during launch or after launch, including return to Earth). In fact, when the State compensates damage under the 1967 and 1972 Outer Space Treaties, it can take action against the operator responsible, provided that it has not already benefited from the operator’s financial or insurance guarantees to the extent of the compensation. In the case of intentional fault, the ceilings do not apply. No recourse is available for damage resulting from acts against State interests. This authorisation and control system helps to reduce the risk of failure and to control other risks to people, property, the environment and public health, even in the event of failure. Reducing risks also improves the reliability of launch and orbital systems, which in turn optimises their technical and economic performance.

French space law defines damage as “any harm to persons, property, and in particular public health or the environment directly caused by a space object in the context of a space operation, excluding the consequences for users of the signal emitted by this object”. For example, cover for Ariane launchers is a minimum of EUR60 million, including no-fault liability for terrestrial damage and fault liability for outer space damage.

The LOS provides for a clear division of liability between the participants in a space operation. There is no possibility of recourse between participants in the event of damage caused to each other or third parties in order to avoid a snowball effect. Contracts must, therefore, include clauses waiving recourse and warranty agreements. In the event of damage caused by a space operation or the production of a space object, the participants bound by a contract cannot be held liable unless otherwise stipulated for damage occurring during production or in the event of an intentional fault. This practice of waiving recourse clauses is common in the space industry.

In addition to the technical aspects, space insurance includes specific clauses on the performance of space equipment. The notion of “intended commercial purpose” requires the insured to prove that the satellite can no longer fulfil its commercial mission in order to receive compensation. Deviations in performance from a standard are covered, with compensation adjusted according to the percentage of failure. French law does not cover damage caused by pollution unless it results in damage to the ground, an explosion or a fire. However, environmental damage is included in the cover – up to EUR750 million. The insurance cover must be linked to the insured event. The loss must occur during the period of cover specified in the insurance contract. According to the French Insurance Code, insurance on assets must comply with the principle of indemnity, according to which the insured can only be compensated up to the amount of the loss. The compensation paid by the insurer is intended to restore the policyholder to the situation he or she was in before the loss occurred. The fundamental principle is that a person or company cannot enrich itself as a result of damage to the property it owns or operates. Consequently, the insurer’s maximum liability is determined by the value of the insured property. However, where the law applicable to the contract permits, it is possible to choose between cover based on the principle of indemnity or cover based on the “agreed value”. The agreed value, which is often used for high-value items, is the value of the insured property as agreed between the insured and the insurer at the time the policy is taken out or during the term of the policy. Goods are generally valued by an expert, particularly in the space industry, due to the complex technologies involved.

At the European level, Directive 85/374/EEC of 25 July 1985 harmonises the laws of the member states concerning product liability. Transposed into French law by Law No 98-389 of 19 May 1998, this directive establishes the producer’s no-fault liability for safety defects in the products it puts into circulation. This means that the producer is liable as soon as a defect in its product causes damage without the victim having to prove fault on its part. However, the victim must prove the causal link between the product defect and the damage. A product is considered defective when it does not offer the safety that can legitimately be expected and not because it is unsuitable for use. With regard to the space sector. Manufacturers and operators of space equipment must guarantee that their products comply with safety standards. In the event of the failure of a satellite or other space object, which results in damage, the principles of strict liability apply. This strengthens the obligations of space operators in terms of product safety and quality.

Limitations on Space Activities

Under French law, there are no space-specific rules with an economic sector orientation. With NewSpace projects, for instance in the life sciences or agrifood sectors, the legal framework needs to evolve to adapt the existing Earth-orientated rules and guidelines to activities conducted in outer space or to the use of results or data triggered by such activities (for instance healthcare in or from space). International guidelines (for instance Good Manufacturing Practices or Good Clinical Practices) or national legislation (for instance the French Public Health Code) may partially be used but are not substantially adapted. Innovative NewSpace project owners require such adaptations in order for their projects to get legally secured and thus become eligible for private or public financing. 

Data Protection in Space

French law does provide specific rules on space data when generated by satellites as per the above-mentioned Decree No 2022-233. Decree No 2022-233 modifies various provisions related to the management of authorisations for space operations. It updates the conditions and requirements for obtaining authorisation for a space operation to ensure compliance with national defence interests and regulations. It details the application submission process, defines the review process by relevant authorities, and establishes conditions for conducting and modifying space operations. 

Among other provisions, Decree No 2022-233 provides that activities carried out by primary users of space-derived data involving data with the following characteristics are subject to the prior declaration stipulated in Article 23 of the aforementioned 2008 LOS:

• Earth observation data (from various panchromatic, multi-spectral or radar sensors or a certain level of intrinsic localisation accuracy.
• Data resulting from the interception of electromagnetic signals emitted from the Earth.
• Data:
1. containing an image of a space object with a resolution of one meter or better;
2. resulting from the interception of electromagnetic signals emitted from a space object; and
3. relating to the location of space objects.

Decree No 2022-234 completes the framework by modifying the existing regulations governing space operations under Decree No 2009-643. It focuses on incorporating national defence considerations into the authorisation process for space activities. The decree provides for the necessary information and documentation required from space operators, the role of defence authorities in reviewing applications, and the conditions under which space operations can be adjusted or supervised to protect national defence interests. Moreover, it mentions exceptions to regulatory requirements for state-conducted operations.

Security in Space

French security law dedicated to Operators of Vital Importance (Opérateurs d’Importance Vitale, OIV) lays down a specific framework, which applies to space actors, obliging them to protect their infrastructure and information systems through a series of certification, audit and other technical and operational measures, under the supervision of the French government and the French Cybersecurity Agency (ANSSI).

Beyond French rules, EU level data-related rules apply, including NIS2, GDPR, the Data Governing Act or Data Act principles, as well as coming regulations on European “data spaces”. The ESA has launched a working programme on the operation and governance of the future European Space Data Space, which will interact with all other European data spaces, and which France is part of through a community of stakeholders. A blueprint will be presented in the coming months to the European Commission giving rise to further steps along the setting up and organisation of this space data space.

Based on the conclusions of hazard and impact studies, applicants for an authorisation shall draw up and implement risk control plans including an environmental damage prevention plan, a space debris mitigation plan, a plan to prevent the risks induced by the re-entry or recovery of launcher components from the space object or its fragments, a collision risk prevention plan, where applicable, a nuclear safety plan and a global protection plan, as well as emergency measures and eventually, cybersecurity measures.

The scope of the law extends to stand-alone space objects, such as satellites, as well as satellite constellations, understood as groups of co-ordinated space objects, and cases of controlled stage returns to Earth. The text includes the notion of a constellation, “a group of space objects composed of at least ten space objects working together for a common mission subject to a predefined in-orbit deployment plan” and which is qualified as a mega-constellation if it contains “at least 100 space objects”. The text also introduces the notion of in-orbit service, performed by a service vehicle requiring rendezvous, approach or contact phases with a target object, including operations such as inspection, capture, docking, transfer into orbit, repair, assembly, transfer of fluids and undocking.

The procedure that operators must follow to obtain the necessary authorisations for their space activities, now applies to one or more space objects, considering that for multiple missions using deployers, the launch operator must specify the number and characteristics of the objects launched contained in the deployers and their mission.

In addition, the characterisation of space objects also includes space objects injected from a deployer after separation from the launcher.

With regard to in-orbit service operations, the description must show:

• the number of the different types of missions planned;
• the nature of the missions envisaged (type of services) and their duration;
• the customers benefiting from the service operation (operators whose satellites will receive the service) if they are known at the time of the application;
• the orbital configuration (orbit, attitude) that the service vehicle will occupy for each of the planned missions;
• transfers of the service vehicle between each mission; and
• any transfers of responsibility between the operator of the target object and the operator of the service vehicle.

Finally, it covers the possibilities of mission extension.

Cybersecurity

In terms of cybersecurity, the launch operator must implement measures to protect itself against malicious cyber operations that could threaten regulatory compliance. Justifications for this approach and a summary of the security measures must be filed with CNES. Cybersecurity measures must also be implemented to prevent reception and conduct of unauthorised or unauthenticated remote controls on board. These provisions are supplemented by measures to secure on-board/ground and on-board/on-board in-orbit communications links, and to ensure that they are resilient to any corruption that could jeopardise the safety of operations.

In France, the use of radio frequencies by licence holders is a private occupation of the state’s public domain. These frequencies are subject to specific regulations, which are particularly influenced by international law. The frequency assignments necessary for the operation of satellite systems can only be used once they have been successfully declared to the ITU by a national administration. Title 4 of Law No 2004-575 of 21 June 2004 on confidence in the digital economy introduced a new Title 8 into Book II of the French Post and Electronic Communications Code, entitled “Assignment of frequencies relating to the satellite system”. The Code now includes specific provisions for satellite systems (including space and earth stations). This law fills a gap in communications law by making the occupation of orbit-spectrum pairs subject to an authorisation regime. It transfers the rights to use these resources, which France has been allocated by the ITU, to satellite system operators. It provides companies developing satellite system projects with a clear legal framework, guaranteeing at an early stage the availability of one of the resources essential to their realisation.

Authorisations are subject to proof of the operator’s ability to control the transmission of all the stations using the frequency assignment, and may only be refused in certain cases listed in the French Post and Electronic Communications Code. This is without prejudice to the other authorisation formalities required by applicable laws and regulations, in particular those issued by ARCEP for electronic communications, or by ARCOM for audio-visual communications.

The operator is the person who carries out or undertakes to carry out the activities covered by the law by ensuring, alone or jointly, the effective control of the space object. There is no legal requirement for operators (beyond the space debris management principles and other rules already mentioned above). However, the documents drawn up by CNES relating to the safeguarding of the Kourou Guiana Space Centre aim to protect the safety of people, property, public health and the environment for launches from the centre and contain prescriptions designed to limit the risks associated with space debris.

Additionally, French Law also refers to two other concepts:

• deployers – ie, “devices that carry one or more space objects as part of a multiple launch and inject them into the orbits requested by the customer(s)”; and
• reusable launchers – ie “self-propelled vehicles designed to place space objects into orbit [...] some or all of whose components undergo a recovery phase on Earth in order to be reused during a subsequent launch operation”.

Moreover, as far as it is concerned, The French intellectual property code states that objects intended to be launched into outer space introduced into French territory are not subject to patent protection cf. Article L.613-5, in line with Article 5 ter of the Paris Convention of 1883 and with similar US provisions in order to prevent any risk of IP litigation for foreign satellites launched from French Guiana.

France is party to the Artemis Accords, whose main principles are as follows:

• Peaceful exploration of space by signatories, in accordance with international law. 
• Transparency in the conduct of activities “in the hope this prevents both confusion and conflict,” including when sharing scientific information with the public and the international scientific community on a good-faith basis.
• Interoperability so systems can work in conjunction with existing infrastructure to enhance both the safety of space operations and the sustainability of these missions.
• Emergency assistance by signatories to astronauts and personnel in outer space who are in distress.
• Registration of relevant space objects.
• Preserving heritage, including sites with historic significance such as human or robotic landing sites, artifacts or spacecraft.
• Extraction and utilisation of space resources from the celestial bodies should be realised to support safe and sustainable space exploration; such activities should be communicated to the UN Secretary General, the public, and the scientific community.
• Avoiding conflicting activities, by preventing harmful interference and exercising the principle of due regard. Establishment of safety zones, under conditions.
• Safe timely and efficient disposal of space debris as part of the mission-planning process to limit the generation of new long-lived or harmful debris.

France’s space activities must also be conducted in compliance with existing treaties, including the 1967 Outer Space Treaty, Article II of which established the principle of non-appropriation of outer space, including the moon and other celestial bodies by a State.

As per July 2024, there is no national law addressing this topic, even though France is party to the Artemis Accords.

It should be noted that the French Intellectual Property Code acknowledges that an invention made in space can be protected by French patent law (Article L. 6111-1).

Article 13 of the 2008 Space Operations Act stipulates that the operator is solely liable for damage caused to third parties by space operations. This includes any damage to persons, property, or the environment directly caused by a space object. Article 5 specifies that authorisations and licences issued under this law may be subject to requirements designed to protect public health and the environment, in particular, to limit the risks associated with space debris.

The Order of 31 March 2011 on technical regulations imposes specific measures to limit space debris, in particular during the launch of one or more space objects. The design, production and operation of launch systems must not present excessive risks to the environment, particularly with regard to pollution by hazardous substances. The launcher must be designed and implemented in such a way that, at the end of its service phase, all onboard energy reserves are permanently depleted or placed in a state where such depletion is unavoidable or in a state where they present no risk of generating debris. Moreover, all onboard energy production systems must be permanently deactivated.

After the launch phase, the components of the launcher placed in orbit must be de-orbited in a controlled manner. If this cannot be achieved, the components must leave Protected Region A within twenty-five years of the end of the launch phase, ideally by uncontrolled atmospheric re-entry or, failing that, by remaining in an orbit whose perigee remains above the Protected Region for one hundred years after operation.

The systems must be designed and implemented to limit the risks of accidental collision with human-made objects whose orbital parameters are precisely known and available during the space operation and the three days following the end of the withdrawal from the service phase.

The launch operator must control the re-entry zone for launcher components designed to detach during the launch phase or for the propulsion component placed in orbit as part of a controlled atmospheric re-entry. This zone, associated with a probability of 99.999%, must not interfere with the territory or territorial waters of any state unless agreed by the latter.

Any operator carrying out a launch to another celestial body, whether or not this includes a return of extraterrestrial matter, must comply with the International Standard for Planetary Protection Policy published by the Committee on Space Research (COSPAR), in accordance with Article IX of the Treaty on Principles Governing the Activities of States in the Exploration and Use of Outer Space, including the Moon and Other Celestial Bodies.

With regard to retirement, satellites in the same constellation must incorporate measures to reduce the risk of intra-constellation collisions until their atmospheric re-entry or for 100 years in the approved graveyard zone. For mega-constellations, satellites must have an on-board propulsion system to enable anti-collision manoeuvres to be carried out effectively and in a timely manner until the end of their retirement. The measures also include the objective of limiting optical disturbances for astronomical observations from the ground or space.

For re-entries, the description in the authorisation file must include:

• a re-entry authorisation issued by the authorities responsible for the landing site;
• a description of the critical systems and sub-systems for the rescue mission;
• a description of the landing site and its facilities; and
• re-entry trajectories, flight sequence and triggering events, provisional date and re-entry window.

There is no applicable information in this jurisdiction.

The standard French corporate income tax (CIT) is 25%. A 15% reduced CIT rate applies to SMEs on taxable income up to EUR42,500 (subject to various conditions, including EU thresholds and a maximum turnover of EUR10 million).

Under the participation exemption regime on capital gains, 88% of capital gains can be exempt, resulting in an effective CIT rate, of up to 4%.

For dividends, the participation exemption regime allows for exemptions of 99% or 95%, making the effective CIT rate between 0.25% and 1.25% for the 2024 fiscal year, provided the company is subject to the 25% CIT rate.

Under the tax consolidation regime, CIT is imposed on aggregate income, including the taxable profits and losses of all French companies within the consolidated group, necessitating a single CIT payment by the parent company.

As space cannot be considered a taxable territory by any country and is not covered by any international tax treaty, the taxation of profits from satellite operations is assessed solely by national tax laws. A French administrative court recently ruled that, in the absence of satellite autonomy from an operational management perspective, profits generated are taxable in France if substantial operations are conducted within French territory. This includes technical human interventions required in France for satellite maintenance, monitoring, operating performance, and commercialisation activities, particularly those involving the negotiation and conclusion of contracts with clients. The courts have deemed the satellite’s value, even if significantly exceeding the cost of the French services rendered, to be irrelevant to the determination of tax liability in France.

Companies that are involved in research or innovation development activities may benefit from various CIT credit. Research activities include mainly fundamental research, applied research and experimental development. The tax credit is calculated based on the research expenses (eg, staff expenses, depreciation of fixed assets used in research), with specific adjustments. The research tax credit rate is 30% for expenses up to EUR100 million, and 5% for expenses exceeding this threshold.  In cases of collaborative research involving subcontracting with special public research entities, the tax credit can reach 40% to 50% (for small companies) under certain conditions, calculated on a maximum of EUR6 million in expenses.

The innovation tax credit, available exclusively to small companies, primarily covers the design of prototypes and pilot plants for new products and is calculated at a rate of 30% on a maximum of EUR400,000 in expenses.

Finally, a reduced CIT rate of 10% may be optionally applied, subject to specific conditions, to the net income (royalties and capital gains) derived from patents and industrial property rights, including IT developments.

There is no specific tax regime that applies to space assets.

The volume of NewSpace companies have increased significantly over the years, encouraged in particular by a CNES project called “Connect by CNES”. In addition, these ventures include innovative projects to ensure the sustainability of space activities by creating new systems and new ways of extending the lifespan of space objects, as well as new ways of raising funds, with the emergence of dedicated investment funds. In this way, certain organisations offer start-ups a favourable framework for understanding the challenges of the space market and integrating them, as well as securing more investment. We are now seeing a proliferation of this type of player, with traditional large companies and new start-ups working more closely together.

On the whole, investment is predominantly public, but there are more and more opportunities to bring private funds into space activities. Moreover, the sector relies on customer contracts and future market prospects.

The EU also acts as a lever for intra-European private investment, although public-private partnerships are not always effective, as shown by the failure of the partnership envisaged for the Galileo programme. At present, the EU gives priority to funding programmes. In the current multiannual financial framework, several funds have been created, such as the European Fund for Strategic Investments, the European Regional Development Fund and the COSME programme for the competitiveness of businesses and SMEs. However, the diversity of funds available for private investment in the space sector lacks clarity, with no single fund clearly dedicated to this sector. To remedy this, in January 2020, the European Commission and the European Investment Bank Group launched the “Innovation Space Equity” pilot scheme to support the innovation and growth of European SMEs in space technologies. Since the Lisbon Treaty, the EU has actively sought to assert its ambitions in the space sector. However, there remains room for improvement compared to the European Space Agency, which demonstrates a clearer and more coherent approach.

States may adopt restrictive measures on foreign investments if they are justified on grounds of public policy, public security or public health. In this context, for security and public order, the Union indirectly protects intra-European private investments with a framework for the screening of foreign direct investments. Although inspired by the legislation and practices of member states, this regulation provides a list of sectors potentially concerned, including the space sector. Member states and the Commission can determine the scope of filtering, taking into account the potential effects of these investments on critical infrastructures, such as transport, communications and aerospace, as well as on critical technologies and dual-use goods, including cybersecurity and aerospace. In France, the decree of 31 December 2019 on foreign investment sets out the procedure for controlling such investment, requiring authorisation from the Minister for the Economy. Thus, the technique of filtering through control of the potential effects of foreign investments on critical infrastructure and the authorisation requirement may indirectly protect intra-European investments and deter foreign investors.

There is no applicable information in this jurisdiction.