Dutreil Pact 2026: What Changes for Family Business Transfers

A longer commitment, a near-decade horizon

The individual holding commitment (EIC), which each beneficiary of the transfer must sign at the end of the collective agreement, is extended from four to six years . Combined with the two-year prior collective commitment, the total holding period becomes a minimum of eight years . This is a long-term constraint upon which all transfer strategies are now based.

Any sale, restructuring, or initial public offering (IPO) project must fall within this timeframe, otherwise the rights will be forfeited and transfer taxes will be repaid with interest. Furthermore, the question of whether this new deadline applies to commitments already in effect on the effective date remains unaddressed by official legal doctrine. The principle of non-retroactivity of tax law should protect legally acquired rights—but a formal position from the tax authorities is still essential.

The exclusion of luxury assets: a limited but binding list

Before the reform, as long as a company carried out an eligible principal activity, the 75% exemption applied to the entire value of the transferred shares—including assets unrelated to the business. The 2026 Finance Act puts an end to this practice. The portion of the share value representing certain non-business assets is now excluded from the exempt base.

The list is exhaustive : non-business-related housing, passenger vehicles, yachts, aircraft, jewelry, precious metals, works of art, racehorses, wines and spirits, and hunting or fishing equipment. The exclusion applies only if these assets have not been used exclusively for business purposes for at least three years prior to the transfer , and this remains the case until the end of the commitment period. The rule extends to assets held by subsidiaries controlled directly or indirectly—which necessitates a consolidated review of the group's scope. However, cash, securities, investments in third-party companies, office buildings, and digital assets, regardless of their use, remain fully eligible.

What this changes for your strategy

The reform does not diminish the attractiveness of the system: transferring ownership while paying taxes on only 25% of the company's value remains an unparalleled tax advantage. However, it requires more rigorous and proactive planning . Three key areas must be addressed before any transfer after February 21, 2026.

Audit the scope of assets. Identify, in the company to be transferred and in all its controlled subsidiaries, the assets covered by the limited list, verify their allocation history and compile the evidentiary file that will serve as a basis in the event of a tax audit.

Streamline the structure if necessary. Non-business assets can be isolated in a dedicated asset management structure kept outside the scope of the Dutreil scheme, distributed to partners, or sold to a third party. Each option entails its own tax implications, which should be weighed against the expected gain.

Anticipate the liquidity constraint over eight years. The division of ownership rights, shareholder agreements providing for exit mechanisms at the end of commitments, or intra-family loans to finance residual rights are all instruments to be calibrated from the structuring phase.

The 2026 Finance Act sends a clear message: business transfer advice no longer ends with the signing of the agreement. It now extends over an eight-year period, marked by risks that the tax lawyer must anticipate, document, and mitigate with the business owner. A successful transfer is a long-term project. The earlier it is initiated, the more the process reveals its true power.

For any questions relating to your business transfer, please contact our Tax & Estate planning department.