In summary…

THE Dutreil Pact is the ultimate survival tool of the’family business in France. It allows you to transfer your work tool with a exemption of 75 % on the value of the securities, often bringing the effective tax rate below 5%. This tax security is, however, subject to a timetable of securities custody a minimum of 6 years and absolute rigor in reporting. In 2026, anticipation remains your best ally to maintain your intact wealth.

A few months ago, a manager of an industrial SME in Lyon confided in me his dilemma: «Alexis, if I transfer my shares to my children today, they’ll have to take out a 15-year loan just to pay the taxes. The company will suffer.» This is the classic scenario of «inheritance fraud» that the Dutreil Pact comes to neutralize.

At the house of Balmont Conseil, we consider that the business transfer should not be a burden on the next generation, but a lever for growth. Leading firm of wealth management augmented with AI, we use our algorithms to simulate the impact of’Article 787 B of the General Tax Code on your structure, while securing each step of the process.

1. What is the Dutreil Pact and how does it work?

The Dutreil Pact is a tax scheme favor which allows a partial exemption from inheritance tax. In practical terms, the tax authorities apply a dejection of 75 % on the company value before calculating the tax.

Calculating the exemption: A massive advantage

For a company valued at 4 million euros:

  • Without Dutreil: The taxable base is €4 million.
  • With Dutreil: The taxable base falls to €1 million (25 % of the value).
    If the donor If under 70 years old and transferring full ownership, he can combine this with a reduction of rights of 50 %, making the cost of the family transmission ridiculous.

2. Eligibility requirements: Is your company eligible?

For benefit of the agreement, the company must exercise a operational activity (industrial, commercial, artisanal, agricultural or professional).

  • The accepted structures: SARL, SAS, but also the sole proprietorships since the relaxations of the Pacte law (2019).
  • The case of holding companies: There holding animator The group is eligible if it actively participates in the management of its subsidiaries' policies. passive holdings are excluded, except in the case of’interposition limited to two levels of companies.
  • Exclusions: Family-owned real estate companies (SCIs) involved in bare rental management and purely asset-based structures are excluded.

3. The Collective Commitment to Conservation: The foundation of the pact

The first step is the signing of a collective commitment to conservation. The partners undertake to retain their shares for a period of minimum duration of two years.

Critical detention thresholds

To be valid, the commitment must relate to detention thresholds accurate :

  • Unlisted company: 17 % of the financial rights and 34 % of the voting rights.
  • Listed company: 10 % of financial rights and 20 % of voting rights.

L'’registration registration with the tax authorities is mandatory to finalize the pact enforceable against the administration.

Alexis Sagnier's opinion: «"There is a variant, the’commitment deemed to have been made, This allows for the removal of the signature if the donor meets the thresholds and has been running the company for more than two years. It saves time, but be aware: its tax security depends on a meticulously detailed compliance audit that we systematically conduct.»

4. The Individual Preservation Commitment: The responsibility of the heirs

Once the free transmission carried out (by gift Or succession), the baton passes to heirs Or donees.

Securities retention period and procedures

Each beneficiary must subscribe to a individual conservation commitment of a minimum duration of four years. This period begins to run from the end of the collective commitment.

  • Total duration: The complete conservation cycle is therefore six years minimum.
  • Transfer prohibited: All securities transaction (sale or exchange) during this period breaks the commitment and results in the immediate claim for the rights evaded by the Public Treasury.

5. Management Function and Business Continuity

The tax authorities do not grant any’exemption without managerial compensation. One of the signatories (the donor or one of the heirs) must exercise a management function effective (Manager, President, member of the directory) throughout the duration of the collective commitment and during the 3 years following the transmission.

For the sole proprietorships, The new owner must continue operations for at least 3 years. Pacte law greatly facilitated the gradual resumption by allowing the transformation of the sole proprietorship into a company at the time of the transfer of ownership.

6. Special cases and balance sheet strategies

L'’wealth engineering modern methods allow the Dutreil method to be adapted to complex situations:

  • Division of ownership rights: Transmit the bare ownership while retaining the’usufruct allows for a further reduction of the taxable base while maintaining income.
  • Post-mortem commitment: If the business owner dies without having signed a pact, the heirs have 6 months to conclude a collective commitment between them.
  • Family Buy Out (family LBO): It is possible to combine the Dutreil with a contribution in securities to a takeover holding company to buy back the shares of the brothers and sisters who do not wish to be involved.

⚠️ WARNING: Failure to comply with reporting formalities Annual compliance checks (proof of threshold compliance, proof of management) are the number one cause of forfeiture of the agreement. An administrative oversight can cost several million euros. [Book a compliance audit]

FAQ

  • Can the Dutreil tax break be combined with the parent-child tax allowance? Yes, the 75 % allowance is applied first, then the general allowance of €100,000 is deducted from the remaining portion.
  • What is the difference between a transfer free of charge and one for a fee? The Dutreil Pact applies exclusively to the free transmission (gift/inheritance). A sale (transfer for consideration) is subject to capital gains tax (except for contribution-sale strategy 150-0 B ter).
  • Can part of the shares be sold after 6 years? Yes, once the collective (2 years) and individual (4 years) cycle is completed, you regain your full freedom of action.

Data Factsheet: Key figures for the Dutreil

IndicatorConditionResult
Discount rateRespect for commitments75 % of the value
Minimum durationCollective + Individual6 years
Threshold (Not listed)Vote / Finance34 % / 17 %
DirectionPost-transmissionminimum 3 years

Conclusion: Towards a smooth transition

THE Dutreil Pact is much more than a tax loophole; it is the guarantor of the continuity of management of our French flagships. But its complexity requires support from experts capable of juggling between the’deed of gift, there inheritance declaration and the balance sheet operations.

At the house of Balmont Conseil, Our role is to offer you this tax security. Don't let the fruits of a lifetime of work evaporate into avoidable taxes.

Sources:

  • General Tax Code: Article 787 B.
  • BOFiP-Taxes: Transfers free of charge – Business transfers (Dutreil Pact).
  • Law No. 2019-486 of May 22, 2019 relating to the growth and transformation of businesses (PACTE Law).
  • ANACOFI Member Booklet 2025.

Everything you need to know about the Dutreil pact :

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