Dutreil Pact: collective commitment, individual commitment and 2026 timetable

The Dutreil agreement is based on two successive commitments. The collective commitment lasts at least two years. The individual commitment then takes over: six years for transfers on or after February 21, 2026, and four years before that date. If all the conditions are met, 75% of the value of the transferred shares is exempt from transfer taxes.

This page explains the pact through its commitments and timeline. For a general overview of the scheme, see the "Dutreil Pact" page on the website.

The two commitments at a glance

The 75 % exemption applies to the transfer, by death or gift, of shares in eligible companies. Both commitments are conditions for this exemption.

Collective commitment: a minimum of two years and a threshold of shares

The collective commitment must have a minimum duration of two years and be ongoing on the day of transmission.

It must cover a sufficient portion of society:

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

These thresholds must be verified before any signing. A commitment that does not meet them does not qualify for exemption.

Individual commitment: increased from four to six years

This is the key change. The 2026 Finance Law (Law No. 2026-103 of February 19, 2026, Article 8) extends the individual holding period from four to six years. This rule applies to transfers, whether by gift or inheritance, from February 21, 2026. The BOFiP (Official Bulletin of Public Finances) confirmed this in a news item dated August 10, 2026.

The individual commitment lasts for six years from the end of the collective commitment.

Prior to this date, the duration was four years from the end of the collective commitment. This four-year period corresponds to the previous system. It no longer applies to transfers made since February 21, 2026.

The date of transfer therefore determines the retention period. A gift signed on February 10, 2026, and a gift signed on March 10, 2026, do not follow the same schedule.

The calendar to be set before signing

The durations follow a specific order. For a transmission starting from February 21, 2026, the schedule reads as follows:

1. Collective commitment, of at least two years, must be in progress on the day of transmission.
2. Inheritance (donation or death): it is she who is exempt up to 75 %.
3. The end of collective commitment triggers individual commitment.
4. Individual commitment lasts six years from that end.
5. The management function is exercised until the end of the collective commitment, then for the three years following the transfer.

Points 4 and 5 are counted from different dates. The management function is counted from the date of handover. Individual commitment is counted from the end of the collective commitment. The two dates should be placed separately on the calendar.

The management function

A person who has signed the undertaking must continuously and effectively hold a management position for the duration of the undertaking. This position must then be held for three years following the transfer. After the transfer, it may be held by one of the signatory partners or by one of the heirs, legatees, or donees who has made an individual commitment to retain the shares received (BOFiP, paragraphs 380 and 390). The manager who transfers their shares is therefore not necessarily required to remain in place for these three years if a donee takes over. For a partnership, the condition relates to the exercise of a principal professional activity.

The BOFiP update on the 2026 reform makes no mention of any change to this condition. The management position therefore remains to be included in the schedule, along with the two commitments.

Conditions relating to the company

The company must have a principal industrial, commercial, craft, agricultural or professional activity. Simply managing its own assets is excluded.

To assess this activity, the BOFiP (French Official Tax Bulletin) uses a practical rule with two cumulative criteria. The eligible activity must represent at least 50% of the company's total turnover. And the market value of the gross assets allocated to this activity must represent at least 50% of the total gross assets. Meeting only one of the two criteria is insufficient. This is an accepted rule: the predominant nature of the activity is assessed more broadly.

Holding companies

Passive holding companies are generally excluded. Active holding companies may be eligible. The definition of an active holding company was established by the 2024 Finance Law (Article 23 of Law No. 2023-1322 of December 29, 2023), applicable to transfers from October 17, 2023.

The specific conditions for an active holding company depend on your structure. They are examined on a case-by-case basis before the agreement is signed.

So-called "luxury" properties, excluded since 2026

Article 8 of the 2026 Finance Law excludes certain so-called "luxury" assets from the partial exemption. These assets are those referred to in the third paragraph of Article 787 B of the French General Tax Code (CGI). This exclusion is new: it did not exist for transfers prior to February 21, 2026. Such an asset is excluded from the exemption when it is not exclusively used for the industrial, commercial, craft, agricultural, or professional activity of the company. The exclusion applies to the portion of the value of the transferred shares that corresponds to these assets. Use of the asset for business purposes is assessed over a period that the French Official Tax Bulletin (BOFiP) sets at least three years before the transfer (or, failing that, from the acquisition of the asset), and then until the end of the individual commitment period (or, failing that, until the sale of the asset) (paragraphs 400, 410, and 490).

The rule applies to transfers from February 21, 2026 onwards. If the company holds assets of this nature, review them before determining the value transferred.

Numerical example (fictitious profile)

Situation. A 62-year-old executive, a partner in a privately held industrial SME, is preparing to transfer his shares to his daughter. The shares are worth €4,000,000. The gift will be signed in March 2026, after February 21, 2026. The collective commitment ends on June 30, 2027.

Issue. The duration of the individual commitment depends on the date of the gift. For a transfer on or after February 21, 2026, the securities remain committed until June 30, 2033. Under the previous four-year system, the deadline would have been June 30, 2031. Two additional years of holding change the family's plans for the securities.

Strategy. The firm reviews with the manager, his notary and his lawyer the schedule of commitments, the management function and the assets held by the company.

Result. Of the €4,000,000 value, 75 units (%) are exempt, representing €3,000,000. The base subject to transfer tax falls to €1,000,000. Allowances and the tax scale are then applied to this base. The individual commitment runs until June 30, 2033.

This profile is fictitious. The values and dates are calculation assumptions, not a commitment to a result.

What changes depending on your situation

• The date of transmission: before or on or after February 21, 2026.
• The company: listed or not, eligible activity or holding company.
• The people who sign the commitment and their management role.
• Assets held by the company.
• The relationship with allowances and the scale of gift taxes.

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