Key figures 2026Personal & estate taxation

France

1| GIFT & INHERITANCE

ALLOWANCE ON GIFTS AND INHERITANCES
Beneficiary	Gift	Inheritance
Spouse or civil partner	€80,724	Exemption
Living or represented child	€100,000	€100,000
Grandchild	€31,865	€1,594
Great-grandchild	€5,310	€1,594
Direct ascendant	€100,000	€100,000
Siblings not subject to conditions	€15,932	€15,932
Siblings subject to conditions (CGI 796-0 ter)	€15,932	Exemption
Nephew and niece	€7,967	€7,967
Disabled heir (additional allowance)	€159,325	€159,325
In the absence of any other allowance	None	€1,594

The residual allowance available at the time of the transfer depends on the registered gifts made in the preceding 15 years.

ALLOWANCE OF €31,865 ON GIFTS OF SUMS OF MONEY CGI
ART. 790 G

For gifts of sums of money in full ownership
To children, grandchildren and great-grandchildren or to nephews and nieces in the absence of direct descendants, or to great-nephews and great-nieces by representation
By a donor under the age of 80 to a recipient over the age of 18
Renewable every 15 years
Cumulative with the allowances listed on the left

EXEMPTION FOR FAMILY GIFTS OF SUMS OF MONEY
CGI ART. 790 A bis

For gifts of sums of money in full ownership
Made between 02/15/2025 and 12/31/2026
To a descendant or, in the absence of descendant, to a nephew
Up to the double limit of €100,000 per the same donor to the same recipient, and of €300,000 per recipient
Provided that the sums are used within 6 months to buy a new real estate asset used as a principal residence for 5 years or to finance energy renovation work in the recipient’s principal residence, which he or she owns and occupies personally

TAXATION OF DIRECT LINE GIFTS AND INHERITANCES
CGI ART. 777
Net taxable fraction	Rate	Calculation formula⁽¹⁾
< €8,072	5%	F x 0.05
Between €8,072 and €12,109	10%	(F x 0.10) - €404
Between €12,109 and €15,932	15%	(F x 0.15) - €1,009
Between €15,932 and €552,324	20%	(F x 0.20) - €1,806
Between €552,324 and €902,838	30%	(F x 0.30) - €57,038
Between €902,838 and €1,805,677	40%	(F x 0.40) - €147,322
> €1,805,677	45%	(F x 0.45) - €237,606
⁽¹⁾F = Net taxable fraction

TAXATION OF INTER VIVOS GIFTS BETWEEN SPOUSES AND CIVIL PARTNERS
CGI ART. 777
Net taxable fraction	Rate	Calculation formula⁽¹⁾
Transfers by death are exempt
< €8,072	5%	F x 0.05
Between €8,072 and €15,932	10%	(F x 0.10) - €404
Between €15,932 and €31,865	15%	(F x 0.15) - €1,200
Between €31,865 and €552,324	20%	(F x 0.20) - €2,793
Between €552,324 and €902,838	30%	(F x 0.30) - €58,026
Between €902,838 et €1,805,677	40%	(F x 0.40) - €148,310
> €1,805,677	45%	(F x 0.45) - €238,594
⁽¹⁾ F = Net taxable fraction

TAXATION OF GIFTS AND INHERITANCES BETWEEN SIBLINGS
CGI ART. 777
Net taxable fraction	Rate	Calculation formula⁽¹⁾
Between 0 and €24,430	35%	F x 0.35
> €24,430	45%	(F x 0.45) - €2,443
⁽¹⁾F = Net taxable fraction

TAXATION OF GIFTS AND INHERITANCES
CGI ART. 777
Degree of kinship	Rate
Between relatives up to and including the 4th degree of kinship	55%
Between relatives beyond the 4th degree of kinship	60%
Between non-relatives	60%

2| INCOME TAX

2025 INCOME TAX
CGI ART. 197
Taxable fraction	Rate
From 0 to €11,600	0%
From €11,601 to €29,759	11%
From €29,580 to €84,577	30%
From €84,578 to €181,917	41%
> €181,917	45%
+ CEHR and CDHR where applicable

EXCEPTIONAL CONTRIBUTION ON HIGH INCOMES CEHR
CGI ART. 223 SEXIES
For taxpayers domiciled for tax purposes in France or abroad, who are liable to French income tax
Single person: fraction of the STI⁽¹⁾	Couple: fraction of the RFR⁽¹⁾	Rate
From 0 to €250,000	From 0 to €500,000	0%
From €250,001 to €500,000	From €500,001 to €1,000,000€	3%
> €500,000	> €1,000,000	4%
⁽¹⁾ Standard Taxable Income (Revenu Fiscal de Référence) of CGI art. 1417 IV, calculated by the tax authorities on the basis of net taxable income, with the addition of certain income or allowances

DIVIDENDS
CGI ART. 117 QUATER AND 158 3.2°

Flat-rate tax of 31.4% (IT 12.8% + SSC 18.6%)
If IT option: after 40% allowance, progressive IT scale + SSC of 18.6% on 100% of the dividend (and charging of flat-rate tax with refund in the case of a surplus)
+ CEHR et CDHR where applicable
Non-residents are not subject to SSC on dividends

DIFFERENTIAL CONTRIBUTION ON HIGH INCOMES
CDHR CGI ART. 224

Payable on the 2026 income by taxpayers who receive a recalculated Standard Taxable Income > €250,000 for a single person or €500,000 for a couple. The recalculated Standard Taxable Income may be lower than the Standard Taxable Income.
It supplements income tax to reach an average tax rate of 20%, including CEHR but excluding social security contributions.

TAXATION OF CAPITAL GAINS ON DISPOSALS OF MOVABLE PROPERTIES
CGI ART. 150 UA & 150-0 A
Sold assets	Taxation
Securities and corporate titles	Flat-rate tax 12.8% + SSC 18.6% Or on global option for all income, taxation of the capital gain at the IT scale (after allowance where applicable, see box) + SSC 18.6% on the capital gain before allowance
Precious metals	11% of the sale price + social debt repayment contribution (CRDS) of 0.5% Or option for the regime of capital gains on movable properties
Jewellery, works of art, collectibles or antiques	6% of the sale price + CRDS 0.5% Or option for the regime of capital gains on movable properties
Other movables	19% on the capital gain after a yearly 5% allowance starting on the 3rd year of holding + SSC 17.2%
The non-residents are not subject to SSC on capital

TAXATION OF CAPITAL REDUCTIONS IN COMPANIES
SUBJECT TO CORPORATION TAX CGI ART. 112
PRINCIPLE Capital reduction by repurchase, by the company, of securities forming part of the private estate of the individual shareholder.	Taxation according to the regime of capital gains on disposal securities. No French sharing tax.
EXCEPTION If the capital reduction does not involve any allocation to shareholder, since it results from losses	No taxation
NOTA In the event of company dissolution	The liquidation bonus is taxed at French sharing tax and comes under the investment income tax regime (flat-rate tax). According to case law, French sharing tax is not due on the repayment of capital (not included in the «BOFiP»).

ALLOWANCES ON CAPITAL GAINS FROM DISPOSAL OF SECURITIES

Fixed allowance €500,000 CGI ART. 150-0 D TER
Transfer due to the retirement of an executive Transfer between 01/01/2018 et le 12/31/2031 Securities held for at least 1 year In the event of flat-rate taxation or at the progressive IT scale Applicable only to the portion subject to income tax. SSC of 18.6% remain payable on the allowance No accumulation with the holding period allowance as per CGI art. 150-0 D

Holding period allowances CGI ART. 150-0 D
Securities acquired or subscribed before 01/01/2018 Only in the event of a global option for taxation at the progressive income tax scale for all income and capital gains on movable properties

Ordinary law allowance
Holding period	Amount of the allowance
Less than 2 years	0%
From 2 to 7 years	50%
8 years and over	65%

Allowance for SME of less than 10 years
Holding period	Amount of the allowance
Less than 1 year	0%
From 1 to 3 years	50%
From 4 to 7 years	65%
8 years and over	85%

3| LIFE INSURANCE

TAXATION OF LIFE INSURANCE POLICIES
UPON THE DEATH OF THE POLICYHOLDER⁽¹⁾
		Premiums paid
		Before 10/13/1998	Since 10/13/1998
Policy taken out before 20/11/1991, including for payments after 70 years of age		Exemption	CGI art. 990 I
Policy taken out since 11/20/1991	Premiums paid before 70 years of age	Exemption	CGI art. 990 I
Policy taken out since 11/20/1991	Premiums paid after 70 years of age	CGI art. 757 B: inheritance tax according to the degree of kinship between insured and beneficiary, after an overall allowance of €30,500 ⁽²⁾
⁽¹⁾ Some individuals are exempt, including spouses and civil partners ⁽²⁾ Death benefit and any allowances distributed between usufructuary and bare owner in accordance with art. 669 of the French CGI

LIFE INSURANCE CGI ART. 990 I⁽¹⁾
Taxation of each separate beneficiary of the same insured person, regardless of the degree of kindship
Allowance «contrat vie génération» subject to conditions	20%
Allowance per beneficiary⁽²⁾	€152,500
Tax rate From 0 to €700,000 Over €700,000	20% 31.25%
⁽¹⁾ Some individuals are exempt, including spouses and civil partners ⁽²⁾ Death benefit and any allowances distributed between usufructuary and bare owner in accordance with art. 669 of the French CGI

TAXATION OF LIFE INSURANCE POLICY REDEMPTIONS
EXCLUDING SOCIAL SECURITY CONTRIBUTIONS
CGI ART. 125-0 A AND 200 A
Lenght of time since the policy was taken out	Income related to premiums paid before 09/27/2017	Income related to policies taken out since 09/27/2017 or premiums paid since 09/27/2017 on policies taken out previously
		Premiums paid by the insured on all policies still open
		< €150,000	> €150,000
< 4 years	Progressive IT scale or if option flat-rate withholding tax of 35%	Flat-rate tax of 12.8%⁽¹⁾	Flat-rate tax of 12.8%⁽¹⁾
Between 4 and 8 years	Progressive IT scale or if option flat-rate withholding tax of 15%	Flat-rate tax of 12.8%⁽¹⁾	Flat-rate tax of 12.8%⁽¹⁾
8 years and over⁽²⁾	Progressive IT scale or if option flat-rate withholding tax of 7.5%	Flat-rate tax of 7.5%⁽¹⁾	Flat-rate tax of 7.5% then 12.8% depending on the pro rata of CGI art. 200 A⁽¹⁾
+ SSC 17.2% at the time the income is perceived (asset in euros) or upon redemption (unit-linked life insurance policy), except for the non-residents + CEHR and CDHR where applicable ⁽¹⁾ Except if option for the progressive income tax (IT) scale for all income ⁽²⁾ After annual allowance of €4.600 for a single person and €9,200 for a couple

NON-SETTLED POLICY PART OF COMMUNITY PROPERTY
CIOT MINISTERIAL REPLY OF 02/23/2016

If the policy was taken out with the spouses’ funds which are part of community property and is not settled by death

In civil terms: it is a joint asset, half of which is dependent on the estate
In tax terms: the surrender value of the policy is not part of the assets of the estate for the calculation of the inheritance tax due by the heirs of the predeceased spouse (exemption)

4| PROPERTY DIVISION

Determination of the tax value of the bare ownership and the usufruct for the registration fees (droits d’enregistrement) and the land registration tax (taxe de publicité foncière)

LIFETIME USUFRUCT
CGI ART. 669 I
Age of the usufructuary	Usufruct	Bare ownership
Under 21 years of age	90%	10%
Under 31 years of age	80%	20%
Under 41 years of age	70%	30%
Under 51 years of age	60%	40%
Under 61 years of age	50%	50%
Under 71 years of age	40%	60%
Under 81 years of age	30%	70%
Under 91 years of age	20%	80%
Over 91 years of age	10%	90%

TEMPORARY USUFRUCT CGI ART. 669 II

The usufruct constituted for a fixed term is estimated 23% of the value of the full ownership for each 10-year period of the usufruct term, without fraction and without taking into account the age of the usufructuary. The value so determined cannot exceed the value of the lifetime usufruct (see opposite), which is a maximum valuation.

RIGHT OF OCCUPANCY AND USE

The tax value of the right of occupancy and use = 60% of the value of the lifetime usufruct determined by CGI art. 669 I (see opposite).

5| WEALTH TAX ON REAL ESTATE (IFI)

TAX SCALE CGI ART. 977
Taxable fraction	Rate	Calculation formula⁽¹⁾
From 0 to €800,000	0%
From €800,001 to €1,300,000	0.50%	(A x 0.005) - €4,000
From €1,300,001 to €2,570,000	0.70%	(A x 0.007) - €6,600
From €2,570,001 to €5,000,000	1%	(A x 0.01) - €14,310
From €5,000,001 to €10,000,000	1.25%	(A x 0.0125) - €26,810
> €10,000,000	1.50%	(A x 0.015) - €51,810
⁽¹⁾ A = net taxable assets If A is between €1,300,000 and €1,400,000: discount = €17,500 - 1.25% A

TRIGGERING THRESHOLD CGI ART. 964

Net taxable real estate assets as at 1st January > €1,300,000
Held directly or indirectly, including life insurance policies, real estate investment companies (SCPI), private real estate companies (SCI), etc

MAIN RESIDENCE CGI ART. 973 I

A 30% allowance is applied to the value of the main residence held directly by the taxpayer (but not in the case of indirect ownership through a French société civile).

PROPERTY DIVISION CGI ART. 968

In principle, when the ownership of a real estate is divided (in between usufruct and bare ownership), this asset is included in the usufructuary’s estate at its full ownership value
No deduction is applicable for property division
The bare ownership is not required to declare these assets for wealth tax

REDUCTION FOR GIFTSCGI ART. 978

The amount of the tax can be reduced by

75% of gifts made
Within the limit of €50,000 per year
If the beneficiary is a non-profit organization listed in CGI art. 978

CAPPING MECHANISM CGI ART. 979

All the taxes paid by the taxpayer (IFI + IT + other income taxes + SSC) may not exceed 75% of the income received the previous year, including non-taxable capital gains (CG)
Failing this, the excess is deducted from the IFI

6| TRANSFER FOR VALUABLE CONSIDERATION

REGISTRATION FEES DUE ON THE SALE
OF BUILDINGSCGI ART. 1594 D
If the property is located in	Rate
Indre (36) or Mayotte (262)	5.09%*
Hautes-Alpes (05), Alpes Maritimes (06), Ardèche (07), Charente (16), Drôme (26), Eure (27), Lozère (48), Oise (60), Hautes-Pyrénées (65), Saône-et-Loire (71), Guadeloupe (971)	5.81%*
Other departements	6.32%*
*Unless for first-time buyers: 5.81% The departments may change their registration fees. The applicable rates by department can be consulted at https://www.impots.gouv.fr/droits-denregistrement

REGISTRATION FEES DUE ON TRANSFERS OF SECURITIES
CGI ART. 726
Sold assets	Rate
Stock in listed companies the sale of which is recorded by deed	0.1%
Stock in listed companies the sale of which is not recorded by deed	0%
Stock in unlisted companies	0.1%
Company’s shares	3% after an allowance, for each of the company’s shares, equal to the ratio between €23,000 and the total number of shares
Securities of companies that are mostly real estate	5% regardless of the type of company

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