Politics · France · 4 hrs ago
France’s revised holding-company tax may raise ten times less than planned
France proposed a tax on wealthy people’s holding companies to raise money for the state.
A holding company can own financial assets and company shares, as well as luxury goods such as yachts and private jets.
The original plan was expected to bring in nearly €1 billion.
After business owners raised concerns that taxing cash reserves could discourage investment, lawmakers changed the measure.
The revised tax is set at 20% but applies only to certain luxury assets, not cash or financial assets.
That change means the tax could raise about €100 million, ten times less than first expected.
The debate is taking place as French lawmakers discuss the 2027 budget, and the sources do not say what happens next to the measure.
France’s revised holding-company tax could raise about €100 million, compared with an initial estimate of nearly €1 billion.
The revised tax rate is 20%, but it applies only to certain luxury assets and excludes cash holdings and financial assets.
The original proposal was a 2% tax on holdings, including their cash and financial assets.
The change followed concerns that taxing holdings’ cash could deter investment in France.
The measure is being debated as part of France’s 2027 budget discussions.
- Who
- French lawmakers revised the proposed tax on holding companies.
- What
- The revised tax applies at 20% to certain luxury assets; its revenue could be about €100 million, rather than nearly €1 billion initially expected.
- When
- The report was published on 22 October 2026. The original proposal was discussed in October 2025.
- Where
- France.
- Why
- Some lawmakers changed the measure after concerns that taxing cash held by companies could discourage investment in France.
Supporters of taxing large fortunes
Philippe Juvin and lawmakers who revised the measure
Tax scope
Supporters of taxing large fortunes
Eva Sas said the revised tax was a “hollow shell” because it covers only luxury goods.
Philippe Juvin and lawmakers who revised the measure
Juvin argued the original version would not have raised the projected amount because companies would have acted to avoid the tax.
Impact on revenue
Supporters of taxing large fortunes
Sas said the revised measure would probably raise €100 million, against an initial estimate of €1 billion to €1.5 billion.
Philippe Juvin and lawmakers who revised the measure
Juvin questioned whether the original tax would have raised €1 billion.
Impact on investment
Supporters of taxing large fortunes
Sas supports taxing large fortunes.
Philippe Juvin and lawmakers who revised the measure
A holding-company owner said taxing cash in the holding could deter him from investing in France.
Amélie de Montchalin described the government’s aim to tax assets held in holding companies.
The initial proposal was a 2% tax on holdings and was expected to raise nearly €1 billion.
Lawmakers revised the measure to a 20% tax on certain luxury assets, excluding cash and financial assets.
franceinfo reported that the revised tax could raise about €100 million as lawmakers debated measures for the 2027 budget.
- Initial rate
- 2%
- Revised rate
- 20%
- Initial revenue estimate
- Nearly €1 billion
- Revised revenue estimate
- About €100 million, according to Eva Sas
- Taxable assets in revised measure
- Certain luxury goods, including racehorses, wine, aircraft and precious metals
- Excluded assets
- Cash holdings and financial assets
What people are saying
This tax is really a hollow shell, indeed.
If now, tomorrow, these cash holdings are taxed, I could be permanently deterred from investing in France.
One billion, that's what the government told you, are you sure?
When we talk about a holding company, you have chalets, private jets, real estate, well, we want to put an end to these practices.