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Private equity
Private equity: investing in unlisted companies, and what taxes give you back.
Whether invested directly, through funds, assurance-vie, or via a holding company, the same investment in the real economy does not grant the same rights. The 2026 Finance Law eliminated some of the tax reductions, while retaining others at 30%.
Four access points
Directly, through funds, through assurance-vie, or through a holding company.
You are investing in the capital of an SME, often with other investors. 18% tax reduction, 30 % for a young innovative company.
A FCPI or FIP distributes your investment among several companies. Since 2026, only the FCPIs invested in JEIs and the Corsican and Overseas FIPs further reduce taxes.
Unlisted funds housed in units of account : no discount on entry, but taxation and the transfer of assurance-vie.
After the sale of a company contributed to a holding company, the proceeds reinvested in private equity funds retain the deferred capital gains.
The 2026 reductions
What each vehicle gives you back in taxes.
| Vehicle | Reduction | Payment withheld at most | Conservation |
|---|---|---|---|
| Capital of a small or medium-sized enterprise (SME), directly | 18 % | €50,000 single, €100,000 couple | Until December 31st of the 5th year |
| Young innovative company or FCPI-JEI | 30 % | €75,000 single, €150,000 couple | 5 years |
| FIP Corsica, FIP Overseas | 30 % | €12,000 single, €24,000 couple | Until December 31st of the 5th year |
| Traditional FCPI, Metropolitan FIP | None | Removed for payments made from January 1, 2026 | — |
| Unlisted funds within a assurance-vie policy | None | Taxation of assurance-vie gains | According to the fund |
The IR-PME and FIP reductions are included in the overall tax break ceiling of €10,000 per year per household (article 200-0 A of the CGI); the JEI reduction has its own ceiling of €50,000 over the period 2024-2028.
After a transfer
For the manager who sells: reinvest the price without paying capital gains tax.
You contribute your shares to a holding company that you control. The capital gain on the contribution is invested postponed (Article 150-0 B ter of the CGI).
The holding company sells and reinvests 70 % of the price in 3 years in an economic activity or eligible private equity funds.
The reinvested funds remain in place 5 years. The deferral holds, and the entire price works instead of losing almost a third of it in tax.
Frequently asked questions
What clients ask us.
Will a FCPI subscribed to in 2026 still reduce my tax?
Only if invested in young, innovative companies: 30% of the payment, on €75,000 single and €150,000 couple (Article 199 terdecies-0 A bis of the French General Tax Code). The 18% tax reduction for traditional FCPIs (French venture capital funds) has been eliminated for payments made since January 1, 2026.
How long is the money tied up?
To retain the tax reduction, the securities or units must be held until December 31st of the fifth year following the subscription. The fund's lifespan, however, is defined in its regulations: this is what determines the redemption date, so it's essential to read these before subscribing.
Can private equity be invested in a assurance-vie policy?
Yes, in unit-linked funds, since the PACTE law of May 22, 2019, which broadened the range of unlisted investment options. There is no tax reduction upon entry, but gains are subject to assurance-vie taxation, and the capital is transferred outside of inheritance, within the limits of Article 990 I of the French General Tax Code (CGI).
What should you check before subscribing?
The exact vehicle, first of all: FCPI-JEI or classic FCPI, FIP Corse or FIP de métropole, the difference makes 30 % or 0 % of reduction in 2026. Then the duration of the fund, its fees and the space which remains under your ceiling of 10,000 € of niches.
