Active holding company: definition, and why it changes the transfer of the company

An active holding company is a holding company whose primary activity is actively participating in the management of its group's policy, in addition to managing a portfolio of investments. This group consists of companies it controls, directly or indirectly, that are engaged in industrial, commercial, artisanal, agricultural, or professional activities. This status is relevant for the purposes of transferring ownership. The financial activity of holding companies generally excludes them from the 75% % exemption under the Dutreil agreement. However, an active holding company may be eligible.

The status of an active holding company is assessed at the time the Dutreil agreement is concluded, or at the time of transfer in the case of a deemed commitment. It must be maintained until the end of the collective (or unilateral, if applicable) and individual commitments.

The definition: a group facilitation activity

The BOFiP defines an active holding company by its principal activity: actively participating in the management of its group's policy, comprised of directly or indirectly controlled companies engaged in industrial, commercial, artisanal, agricultural, or professional activities. It carries out this activity in addition to managing a portfolio of investments.

An active holding company can also provide specific services internally to the group: administrative, legal, accounting, financial, real estate.

Two points regarding the schedule:

• The moment when quality is appreciated. The status is assessed at the time the Dutreil agreement is concluded, or upon transfer in the case of a deemed acquired commitment. It is maintained until the end of the collective (or unilateral, if applicable) and individual commitments.
• The application date. The definition comes from Article 23 of the Finance Law for 2024 (Law No. 2023-1322). It is applicable to transfers from October 17, 2023.

The threshold at which animation activity is considered primary is not included on this page. It can be verified in the text, structure by structure.

The passive holding company is in principle excluded from the Dutreil agreement.

The Dutreil agreement exempts shares in eligible companies transferred by inheritance or gift from transfer taxes up to 75% of their value. The company must have a principal industrial, commercial, artisanal, agricultural, or professional activity. Simply managing one's own assets is excluded.

For holding companies, the doctrine sets out two rules:

• The financial activity of holding companies generally excludes them from the scope of the exemption. Managing one's own assets or a securities portfolio is not an eligible activity.
• Active holding companies may be eligible. The other conditions of the pact must also be met.

Intermediary companies: two levels

A holding company can own subsidiaries, which themselves own other companies. The BOFiP (French Official Tax Bulletin) limits the consideration of intermediary companies to two levels. It assumes that the intermediary company has subscribed to the holding commitment.

Operating holding company and IFI

For the purposes of the French Wealth Tax (IFI), the BOFiP (Official Bulletin of Public Finances) distinguishes between holding companies that "actively manage their group" and passive holding companies, which are "simply managers of a securities portfolio." The shares of an active holding company may retain a business character. This character may entitle the holder to an exemption for real estate assets used in the holding company's activities.

This doctrine dates from 2018. It does not include the 2023 definition, and its specific conditions are not repeated here. These conditions must be verified before any decision is made.

Two books to avoid

1. To believe that a holding company that owns securities is inherently active. Managing a securities portfolio is not an activity eligible for the agreement. Furthermore, the holding company actively participates in the management of its group's policy.
2. Assessing the quality of an active holding company solely on the date of the donation. It is assessed at the time of the conclusion of the pact (or of the transfer in the case of a commitment deemed acquired) and maintained until the end of the commitments.

Numerical example (fictitious profile)

Situation. A 60-year-old executive owns an active holding company that controls three operating companies and actively participates in their management. The holding company's shares are worth €3,000,000. He wishes to gift them to his son outright. The conditions of the Dutreil agreement are met and will remain in effect. He had already gifted €100,000 to his son less than 15 years ago. Under the assumption that this prior gift is fully covered by the €100,000 allowance, which is calculated over 15 years, no further allowance remains available.

Issue. The type of holding company determines whether the 75 % exemption applies. A holding company that only manages a portfolio of securities would, in principle, be excluded.

Strategy. The firm reviews with the manager, his notary and his lawyer the actual quality of the holding company, before the signing of the agreement.

Result.

The difference is €944,432.35. The calculation applies the scale of rights in direct line: 5 % up to €8,072, then 10 %, 15 %, 20 %, 30 %, 40 % and 45 % in brackets.

This profile is fictitious. It does not take into account the 50% tax reduction discussed on the page about gifting securities before age 70. It assumes the tax brackets remain unchanged and the allowance has been exhausted, as mentioned above. It does not predict any results for your family.

What changes depending on your situation

• The reality of the support provided by the holding company to its subsidiaries.
• The composition of the group and the number of corporate levels.
• The date of transmission: the individual commitment is six years for transmissions starting from February 21, 2026.
• The holding company's assets: luxury goods are excluded from the exemption from February 21, 2026, unless exclusively used for the company's business, for at least three years before the transfer (or since the acquisition) and until the end of the individual commitment (BOFiP).
• The donor's age and the form of the donation.
• Your IFI (French wealth tax) situation.

These factors determine what applies to your situation. No results are guaranteed: the rule will be verified on your case.