# French taxation and wealth transfer reforms

> Live situation record from CLSTR: https://clstr.news/situations/french-taxation-and-wealth-transfer-reforms
> Updated: 2026-09-12T17:10:00.000Z. Sources: 23. Developments: 3.

French fiscal regulations regarding business taxation and gift deductibility have been subject to specific thresholds, such as a €73 limit for business presents per beneficiary per year. 

As part of preparations for the 2027 budget, the French government and the Congress of Notaries have proposed reforms to inheritance and donation taxation to encourage earlier wealth transmission. Under the ‘transmissions 2027’ plan, led by Prime Minister Sébastien Lecornu, the government aims to increase the circulation of private savings before they are locked in traditional inheritance processes. This initiative is intended to assist heirs during critical life stages, such as purchasing a home or starting a family.

Specific proposals include raising the tax-exempt ceiling for cash gifts from 31,865 euros to 50,000 euros for donors under the age of 80 giving to adult children, grandchildren, or great-grandchildren. The government also proposes a temporary 6% flat tax rate on the taxable portion of full-ownership family property donations, capped at 100,000 euros per donor and beneficiary. Other suggested measures include cutting donation taxes by half for individuals under 75.

In the business sector, the ‘Pacte Papin’ has been proposed to reduce registration duties from 3% to 0.1% to facilitate the transfer of small and medium-sized enterprises to employees. Meanwhile, the CFDT union has suggested a 1% levy on successions to fund elderly autonomy. Additionally, government spokesperson Maud Bregeon indicated that the 2027 budget will include a full indexation of income tax brackets to inflation to prevent a mechanical increase in taxation, as the executive seeks 30 billion euros in savings to reduce public debt and deficit.

## Claims

- The tax-free threshold for family cash gifts will be raised from 31,865 euros to 50,000 euros. (corroborated by 3 sources)
- The cash gift scheme applies to individuals under 80 giving to adult children, grandchildren, or great-grandchildren. (corroborated by 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. (corroborated by 3 sources)
- The Lecornu government will propose temporary measures in the 2027 budget to facilitate family donations. (corroborated by 3 sources)
- The tax-exempt ceiling for family cash gifts will be raised from 31,865 euros to 50,000 euros. (corroborated by 3 sources)
- The tax-exempt cash gift provision applies to donors under 80 years old giving to adult children, grandchildren, or great-grandchildren. (corroborated by 3 sources)
- A temporary 6% single tax rate will apply to the taxable portion of family property donations up to 100,000 euros per donor and beneficiary. (corroborated by 3 sources)
- The measures are part of a temporary 'transmissions 2027' plan to be applied next year. (corroborated by 3 sources)
- The 'Pacte Papin' aims to reduce registration duties for employee business takeovers from 3% to 0.1%. (single source)

## Timeline

### 2026-09-12: France proposes new tax measures to facilitate family donations in 2027 budget

The French government proposes the ‘transmissions 2027’ plan to ease family donations by raising tax-exempt thresholds and introducing a temporary 6% tax rate to encourage earlier wealth transfer.

15 sources. https://clstr.news/cluster/france-to-propose-temporary-tax-relief-for-family-donations

### 2026-09-10: France proposes tax reforms to facilitate family donations and wealth transfer

France is considering major tax reforms for 2027 to facilitate earlier family donations and business transfers, including proposals to halve donation taxes and increase tax-exempt gift thresholds.

9 sources. https://clstr.news/cluster/french-notaries-propose-halving-taxes-on-family-donations

### 2026-08-11: French business taxation and gift deductibility rules

French business taxation covers profit tax (IR or IS), VAT, and local contributions, while business gift deductibility is capped at €73 per beneficiary annually until 2026.

2 sources. https://clstr.news/cluster/french-business-taxation-and-gift-deductibility-rules

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Cite as: French taxation and wealth transfer reforms. CLSTR, https://clstr.news/situations/french-taxation-and-wealth-transfer-reforms