On October 31, the National Assembly, amid the shifting political alliances surrounding the 2026 budget bill, adopted the JUVIN amendment.
Originally, the proposal called for the creation of a new tax on the assets of wealth management holding companies—assets not used in operational activities—in order to combat tax avoidance strategies.
The aim was to tax the cash reserves accumulated in these holding companies, which were not subject to any taxation.
In the end, lawmakers retained only the tax on holding companies and the tax on luxury goods.
Consequences:
- Luxury goods would be taxed at 20%
- The ownership threshold that triggers the tax has been raised from 33% to 50%
- Real estate listed as an asset of a holding company (with assets exceeding €5 million and generating more than 50% passive income) is subject to taxation.
- Family structures will be the primary focus of this new amendment
- Cash accumulated in holding companies is excluded.
Questions to Consider
- Will the Constitutional Council strike down this rather confiscatory principle?
- Will this revision generate enough revenue to increase government revenue?
- Has the topic of tax optimization finally been exhausted?
- There are still many questions (furnished rentals, hotel-related assets, etc.) that the back-and-forth with the Senate could help clarify.
