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Retirement for business owners
Retirement of the executive: the pension matters, but it is the sale of the company that makes the retirement.
For most executives, mandatory pension schemes only replace a small portion of their income. The remainder comes from tax-free savings and, above all, from the sale price, the tax on which depends on the timing between retirement and the sale.
Three sources
Where will your retirement income come from?.
Basic and supplementary coverage, depending on your status as an employee or self-employed. career summary gives the starting point for the calculation.
Retirement savingsIndividual retirement savings plan (PER), company retirement savings plan (PER): contributions deducted today, at your highest bracket, and payout as a lump sum or as an annuity.See the page →The sale priceThe value of your business, reinvested to generate income. Capital gains tax is being prepared. several years before the sale.See the page →
The transfer
Retiring and selling: three possible options.
| Situation | The regime | What you need to know |
|---|---|---|
| You sell your securities and retire within 2 years | A tax allowance of €500,000 on capital gains (Article 150-0 D ter) | Social security contributions remain due on the entire capital gain. |
| You contribute your shares to a holding company before the sale | Capital gains deferred (article 150-0 B ter) | 70 % of the price to be reinvested over 3 years in an eligible activity |
| You pass it on to your children | Dutreil Pact: 75 % of the exempted value (article 787 B) | Management remains in place for 3 years after the transfer |
Without allowance, a capital gain on securities is taxed at 31.4 % in 2026: 12.8 % of tax and 18.6 % of social security contributions.
Before the sale
What weighs on the price, and what funds your projects.
Frequently asked questions
What clients ask us.
When should I start preparing for retirement and business transfer?
At least five years in advance: the company's valuation, the choice between direct sale, holding company or transfer, and contributions to the PER (retirement savings plan) must be decided beforehand. Some plans require five years of activity or ownership.
€500,000 tax allowance or contribution to a holding company: which to choose?
These are two different approaches: the tax allowance requires a sale and retirement within 2 years, while the contribution requires the holding company to reinvest 70% of the price (article 150-0 B ter of the French General Tax Code). Their combination depends on the timeline: both are calculated before making a choice.
What happens to my company's assurance-vie or retirement plan upon transfer of ownership?
Your company retirement savings plan (PER) remains valid and can be transferred to an individual PER (Article L. 224-40 of the French Monetary and Financial Code). Group insurance coverage ends when you leave your position; individual insurance will then take over until retirement, if needed.
