The Dutreil pact in 2026: passing on a French company with a 75 % exemption
In brief. The French Dutreil pact exempts 75 % of the value of shares in an operating company from gift or inheritance duties, provided the shareholders commit to keep them and one of them runs the business. Since 2026, the individual commitment is six years, eight years in total at minimum, and non-business assets held by the company are excluded.
An illustrative calculation
An owner under 70 gives shares worth EUR 10 m to a child in full ownership. After the 75 % exemption the taxable base is EUR 2.5 m, or EUR 2.4 m after the EUR 100,000 allowance. Duties at the direct-line scale are about EUR 0.84 m, halved to about EUR 0.42 m. Without Dutreil they would be about EUR 4.2 m. Indicative only; the notary confirms the figures.
The rules since 2026
| Rule | Before | Since 2026 |
|---|---|---|
| Exemption | 75 % | 75 % |
| Collective commitment | 2 years minimum | 2 years minimum |
| Individual commitment | 4 years | 6 years |
| Non-business assets in the company | Included | Excluded unless used solely for the business |
Points that are challenged
- Whether the company is genuinely operating, or the holding genuinely active.
- The value retained for the shares.
- Compatibility of an eight-year commitment with a future sale.
- Non-business assets to isolate before the transfer.
For families outside France
The regime applies to French companies and French-resident donors or heirs. Families living in the Gulf with French assets or French-resident children should review the interaction between Dutreil and UAE structures.
Facing a decision like this?
We read every request personally and reply within 72 working hours when we believe we can be useful. The first review is free and without commitment.
Request a reviewThis guide is general information. It is not investment, legal or tax advice. The rules quoted must be checked by your advisers before any decision.