France proposes tax incentives for farmers and seniors in 2027 budget

The French government has introduced amendments to its 2027 budget proposal aimed at supporting both the agricultural sector and senior citizens.

To facilitate the transfer of farms, the government proposed the ‘Pacte Genevard,’ comprising two main measures. The first involves adapting the ‘Pacte Papin’ to encourage retiring farmers to transfer their holdings by doubling the fixed capital gains tax abatement to one million euros for transfers to new farmers. The second measure proposes extending a reduced transfer tax rate of 0.1% to rural property acquisitions for portions of the price under 150,000 euros, provided the buyer commits to exclusive agricultural use and five years of ownership.

Additionally, the budget includes tax advantages for individuals born before 1962. Eligible seniors may benefit from a combined reduction in income tax and property tax. For the 2027 tax year, a fixed deduction will be applied to net global income based on income thresholds, with higher deductions available for low-income retirees and doubled amounts for married or civil union couples where both partners are over 65.