France tightens Pacte Dutreil rules as left-wing party seeks business dialogue

The 2026 French finance law strengthens the conditions of the Pacte Dutreil, a tax regime that exempts 75 % of inheritance and donation duties on family‑owned businesses. The reform extends the total conservation period for shares to eight years (up from six) and requires a longer individual commitment, while tightening scrutiny of multi‑tier holding structures and excluding non‑operational assets from the benefit. Failure to meet the new criteria can lead to loss of the exemption, which previously reduced the average tax rate on a transfer to about 8 % versus roughly 34 % without it.

In the early stages of the 2027 presidential campaign, La France Insoumise leader Jean‑Luc Mélenchon met with senior executives of major French industrial groups at a dinner organized by the France Industrie lobby. The meeting aimed to open dialogue on proposals such as a "productive pact," corporate tax adjustments and a retirement age of 60, signalling the party’s effort to engage the business community despite policy differences.