Practical guide · all guides
Public subsidy: definition and examples
A clear definition, real examples by profile, and the difference with other aids (tax credit, loan, exemption).
A public subsidy is financial aid paid by an administration (State, region, department, municipality, EU) to support an eligible or public-interest project, with no repayment obligation. That is what sets it apart from a loan: a subsidy is not repaid.
It is granted on criteria (profile, project, area, amount) and by application. It differs from a tax credit (tax reduction), a bonus (flat amount triggered by an action) and an exemption (lower charges).
Method
Getting a public subsidy: the steps
Start from your project and profile
Individual, business, non-profit, farmer, authority: your status and the project set the accessible subsidies.
List the combinable subsidies
Map national, regional and local schemes. Many stack together and with other aids (bonuses, loans, exemptions).
Check eligibility and timing
Criteria, opening date and deadline. For investment projects, the application is often filed before committing any spend.
Build and file the application
Gather required documents (quote, proof, budget), file on the official portal, and track processing.
Examples of public subsidies by profile
For an individual: MaPrimeRénov' to fund energy renovation works, or the energy voucher to ease bills.
For a business: creation aids (like ACRE, an exemption), regional investment or innovation grants.
For a farmer: CAP aids (basic payment, eco-scheme) supporting income and farming practices.
Subsidy, tax credit, bonus, loan: what's the difference?
A subsidy is direct non-repayable aid. A tax credit reduces the tax due (or is refunded if above it). A bonus is a flat amount triggered by an action. A subsidised loan is repaid, but at zero or low rate.
These levers often combine on one project. Our guide details these differences to choose the right setup.
Related grants
Listings to check
FAQ
Frequently asked
What is a public subsidy?
Financial aid paid by an administration (State, authority, EU) to support an eligible project, with no repayment obligation. That distinguishes it from a loan.
Is a subsidy repaid?
No, unless conditions are breached (project not done, false declaration). Unlike a loan, a subsidy is not meant to be repaid.
Difference between a subsidy and a tax credit?
A subsidy is a direct non-repayable payment. A tax credit reduces the tax due (and can be refunded if above it), the following year via the tax return.
Go further