In summary…

THE Dutreil pact is a definition even the French tax exception: a preferential tax scheme allowing a exemption from transfer taxes up to 75 % of the value of the securities of a family business. Created in 2003, it requires in return a commitment to retain securities in the long term (collective then individual commitment) and the exercise of a management function effective. In 2026, the system drastically refocuses on the operational work tool, excluding passive assets.

When a Lyon executive comes to see me to prepare for their succession, the term "Dutreil" often comes up like a magic formula. Yet, behind this definition Hidden within this tax loophole is high-precision engineering. Created by the Law No. 2003-721 of August 1, 2003 under the impetus of Renaud Dutreil, This mechanism was initially intended to protect the economic sovereignty of France by promoting the long-term capital holding.

At the house of Balmont Conseil, We do not see the pact as a mere option, but as the foundation of the business transfer. As the first AI-enhanced wealth management firm, we combine the rigor of General Tax Code to an analysis of economic substance that traditional tools often ignore.

1. What exactly is the Dutreil pact?

There definition technique of Dutreil pact is that of a preferential tax scheme which allows transmission, by gift or inheritance, shares or stocks in operating companies benefiting from a tax abatement exceptional.

Calculating the tax allowance

The mechanism is based on a reduction of transfer taxes via a exemption of 75 % of the value of the securities.

  • The taxable base: Registration fees are calculated only on 25 % of the company's value.
  • Strategic accumulation: If the donor is under 70 years old and transfers full ownership, a 50% reduction % Additional transfer taxes apply to the balance.
  • No ceiling: Unlike other abatements, this one does not no limit on the amount.

2. Eligibility conditions: Who can benefit from the pact?

L'’exemption from transfer taxes is not acquired by default. It is subject to eligibility conditions for the Dutreil pact very strict, both on the nature of the business and on the commitments of the partners.

A. The nature of the activity

The company must exercise a industrial, commercial, craft, agricultural or professional activity.

  • Holding companies: There holding animator (which actively participates in the group's policy) is eligible. Pure holding companies are generally excluded, except for complex structures of Indirect ownership.
  • Exclusion of liabilities: The activities of wealth management Civil (unfurnished rental, furnished rental, financial management) are not eligible.

B. The detention thresholds

For a unlisted company, The signatories must together hold at least 34 % voting rights And 17 % of financial rights. For a listed company, these thresholds fall to 20 % and 10 %.

3. Duration of the conservation commitment: The Dutreil schedule

There free transmission Under the condition that Dutreil imposes two successive phases of conservation.

  1. The collective commitment to conservation: From one minimum duration of two years, it must be subscribed to by the donor or the deceased with other partners.
    • Variant: L'’commitment deemed to have been made allows one to avoid signing a deed if the donor already meets the thresholds and has been running the company for more than two years.
    • Variant: L'’post-mortem engagement allows the heirs to conclude the pact within 6 months of the death if nothing had been anticipated.
  2. Individual commitment: Each heir or donee undertakes to retain their securities for one minimum duration of four years (range to six years by the 2026 finance law (in some cases).

The management function: A prerequisite

Throughout the duration of the collective commitment and for three years following its transfer, one of the signatories (or one of the successors in title by gratuitous title) must exercise a management function effective or its main professional activity.

4. Division of ownership and complex situations

The pact is a tool for flexible asset management. division of ownership is frequently used to optimize transmission.

  • Bare ownership and usufruct: The donor transfers the bare ownership (future value) and retains the usufruct (enjoyment and income).
  • Attention : In this case, the company's articles of association must limit the usufructuary's voting rights to decisions concerning the allocation of profits only, in order to preserve the formal conformity of the pact.

The Look-Through approach for groups

For multi-story structures, we apply an analysis through reinforced. The 2026 Finance Law requires an asset review at each level: the non-professional assets Or luxury goods (yachts, jewelry, wines, residential leisure real estate) are now strictly excluded from the exemption base.

Alexis Sagnier's opinion: «"The Dutreil pact must not be a 'catch-all'. With the 2026 reform, the professional use of assets must be justified for at least three years. A file without substance "The real economy is a priority target for the administration."»

5. Reporting obligations and risks of reclassification

There robustness of the backrest depends on your thoroughness in doing your research.

  • During transmission: L'’deed of gift or the inheritance declaration must mention the commitment.
  • Follow up : Of the certificates of preservation must be submitted to the administration to prove the stability of shareholding and the continuity of management.

Warning: Failure to meet even a single threshold or interruption of management results in the total forfeiture of the tax benefit. tax expenditure linked to the Dutreil law (5.5 billion euros in 2024) is the subject of a Court of Auditors report 2025 very critical, denouncing a excessive tax optimization tool.

Data Factsheet: The Dutreil Pact at a Glance

CharacteristicStandard rule2026 Reform
Tax abatement75 % of the valueUnchanged
Individual Commitment4 yearsUp to 6 years old
Luxury assetsIncluded (often)Strictly excluded
Post-act management3 yearsStrengthening the evidence of substance

Answer Capsules

  • Can the Dutreil law be used for a third party? Yes, but the’dejection It concerns transfer taxes between third parties (60 %), which remains very expensive. The system is primarily designed for the’family business.
  • What is the difference between a gift and an inheritance? There gift inter vivos allows you to anticipate and benefit from the 50% age-related reduction, where the succession is suffered upon death.
  • Does the pact apply to sole proprietorships? Yes, provided that the all assets used in the operation and to continue the activity for 3 years.

Conclusion: Anticipation is the only guarantee of peace of mind.

There definition of Dutreil pact does not stop at a simple partial exemption. It's a contract of trust between your family and the state. In 2026, faced with an increasingly demanding administration regarding the justification for the professional assignment, with the help of a tax lawyer or a chartered accountant It is no longer an option, it is a necessity.

Does your current structure allow for a deemed commitment? Are your real estate assets exempt from the luxury property exclusion?

[Book a Dutreil Feasibility Audit with Alexis Sagnier]

Sources:

  • General Tax Code: Articles 787 B and 787 C.
  • Official Bulletin of Public Finances (BOFiP): Transfers free of charge – Companies.
  • Report from the Court of Auditors (November 2025): "The efficiency of professional tax loopholes".
  • Draft Finance Bill (PLF) 2026.

Everything you need to know about the Dutreil pact :

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