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France proposes tax reforms to facilitate family donations and wealth transfer
The French government and the Congress of Notaries are proposing significant reforms to inheritance and donation taxation as part of the 2027 budget preparations. The goal is to encourage earlier wealth transmission to stimulate the economy and intergenerational solidarity.
Notaries have proposed cutting taxes on donations by half for individuals under 75, with a cap of 500,000 euros per donation. This aims to move wealth from the baby-boom generation to heirs while they are still in productive life stages.
Simultaneously, the government under Sébastien Lecornu plans temporary measures through a ‘Transmissions 2027’ plan. Key proposals include raising the tax-exempt threshold for cash gifts from 31,865 to 50,000 euros for donors under 80. Another measure suggests a temporary flat 6% tax rate for family property donations up to 100,000 euros.
In the business sector, the ‘Pacte Papin’ aims to facilitate the transfer of small and medium-sized enterprises (SMEs) to employees by reducing registration duties from 3% to 0.1%. Meanwhile, the CFDT union has advocated for a 1% levy on all successions to fund autonomy for the elderly, highlighting the ongoing debate over social and fiscal justice in wealth distribution.
Entities
CFDT · Congrès des notaires de France · French government · Matignon · Sébastien Lecornu
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] The 'Pacte Papin' aims to reduce registration duties for employee business takeovers from 3% to 0.1%. www.capital.fr
- [● 3 SOURCES] The tax-free threshold for family cash gifts will be raised from 31,865 euros to 50,000 euros. www.lalsace.fr · www.lejsl.com · www.leprogres.fr
- [● 3 SOURCES] The cash gift scheme applies to individuals under 80 giving to adult children, grandchildren, or great-grandchildren. www.lalsace.fr · www.lejsl.com · www.leprogres.fr
- [● 3 SOURCES] Taxable fractions of full-ownership family donations will temporarily benefit from a single 6% rate, up to 100,000 euros per donor and beneficiary. www.lalsace.fr · www.lejsl.com · www.leprogres.fr