The 2026 Budget Bill, which runs 223 pages, introduces a new tax targeting wealth-holding companies.

On Tuesday, the Prime Minister took responsibility for his government’s “revenue” section of the 2026 budget by invoking Article 49.3.

🔷 Tax rate
The tax has been increased to 20% on certain luxury goods or passive income (compared to the 2% initially mentioned in October).

🔷 Objective
✔️ Combat certain tax optimization strategies involving shell companies.
✔️ Increase the tax contribution of certain large estates, particularly when passive income (dividends, interest, financial income, royalties, etc.) is high.

🔷Key Provisions
✔️ Tax Base: Non-business assets held by a holding company (excluding assets related to business operations and cash).

✔️Qualifying criteria:
• At least €5 million in assets;
• The individual must hold 50% or more of the holding company’s capital;
• Passive income accounts for more than 50% of total revenue.

✔️ Covered assets: luxury assets (residences that the partner reserves for his or her own use—this applies if the rent is undervalued—works of art, yachts, classic cars, racehorses, wines…),

The National Assembly voted in favor of this mechanism, but its adoption remains uncertain.

The measure has sparked considerable controversy: the tax rate has been described as confiscatory, and the administrative process is complex.