{"id":20134,"date":"2026-02-20T13:01:57","date_gmt":"2026-02-20T12:01:57","guid":{"rendered":"https:\/\/farewelltax.com\/ldf-2026-the-constitutional-council-has-issued-its-ruling-on-constitutionality\/"},"modified":"2026-09-24T11:35:39","modified_gmt":"2026-09-24T09:35:39","slug":"ldf-2026-the-constitutional-council-has-issued-its-ruling-on-constitutionality","status":"publish","type":"post","link":"https:\/\/farewelltax.com\/en\/ldf-2026-the-constitutional-council-has-issued-its-ruling-on-constitutionality\/","title":{"rendered":"LDF 2026: The Constitutional Council has issued its ruling on constitutionality"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"20134\" class=\"elementor elementor-20134 elementor-19475\" data-elementor-post-type=\"post\">\n\t\t\t\t        <section class=\"elementor-section elementor-top-section elementor-element elementor-element-3dd8200 elementor-section-boxed elementor-section-height-default elementor-section-height-default pxl-row-scroll-none pxl-zoom-point-false pxl-section-overflow-visible\" data-id=\"3dd8200\" data-element_type=\"section\" data-e-type=\"section\">\n\n                \n                <div class=\"elementor-container elementor-column-gap-default \">\n                <div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6b3767b pxl-column-none pxl-column-overflow-hidden-no pxl-column-line-no\" data-id=\"6b3767b\" data-element_type=\"column\" data-e-type=\"column\">\r\n        <div class=\"elementor-widget-wrap elementor-element-populated\">\r\n                     \r\n        \t\t<div class=\"elementor-element elementor-element-471f9c2 elementor-widget elementor-widget-pxl_text_editor\" data-id=\"471f9c2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"pxl_text_editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"pxl-text-editor\">\n\t<div class=\"pxl-item--inner  \" data-wow-delay=\"ms\">\n\t\t<p>The Constitutional Council issued its decision yesterday regarding the constitutionality of several provisions of the 2026 Finance Act (Decision No. 2026-901 DC of February 19, 2026).<\/p>\n<p>As a reminder, the Prime Minister had referred the matter to the Constitutional Council regarding:<\/p>\n<ul>\n<li>The Tax on Wealth-Management Holding Companies (Art. 7)<\/li>\n<li>The Dutreil Pact (Art. 8)<\/li>\n<li>Contribution-in-kind (Art. 11)<\/li>\n<\/ul>\n<p>The Constitutional Council stated, however, that it was not its role to conduct an in-depth review in the absence of any claims of unconstitutionality.<\/p>\n<p>Consequently, all of these provisions were adopted, or at least declared <strong>\u201cnot contrary to the Constitution.\u201d<\/strong><\/p>\n<p>As a reminder, here are the consequences of adopting these provisions<\/p>\n<p>\u2714\ufe0f<strong> Introduction of a new \u201cHolding\u201d tax on financial assets<\/strong>:<br \/>\u27a8 Rate of 20%<br \/>\u27a8 Threshold for application: at least \u20ac5 million in assets<br \/>\u27a8 Tax base: non-business assets held by a holding company (excluding assets related to productive activities and cash). <br \/>\u27a8 Works of art, collectibles, and antiques are excluded<\/p>\n<p>\u2714\ufe0f<strong> The Dutreil Pact is now subject to stricter regulations<\/strong>:<br \/>\u27a8The scope of eligible assets has been narrowed: luxury items (works of art, cars, and especially residential property) that are not exclusively used for business purposes are excluded from the tax break.<br \/>\u27a8These assets may still qualify for the Dutreil exemption if they are used exclusively for the company\u2019s business for at least 3 years prior to the transfer and until the end of the holding period <br \/>\u27a8The individual holding period for company securities has been extended from 4 to 6 years.<\/p>\n<p>\u2714\ufe0f <strong>The \u201ccontribution-disposal\u201d mechanism has been tightened<\/strong>:<br \/>\u27a8The holding company must reinvest at least 70% of the proceeds from the disposal (up from 60%)<br \/>\u27a8The mandatory reinvestment period has been extended from 2 to 3 years<br \/>\u27a8The acquired assets must be held for at least 5 years (up from 1 year)<br \/>\u27a8 and, most importantly, real estate activities as defined in Section L of the NAF classification\u2014including real estate brokers, developers, and land subdivers, as well as real estate management and operation activities\u2014are now excluded<\/p>\n<p><strong>Adoption does not mean guaranteed constitutionality; therefore, the QPC remains open.<\/strong><\/p>\n<p>The lack of thorough oversight means that the following issues may still be debated:<\/p>\n<ul>\n<li>Respect for the principle of equality before public obligations<\/li>\n<li>Proportionality in Relation to Property Rights<\/li>\n<li>A potentially confiscatory nature<\/li>\n<li>The alignment of taxation with actual ability to pay.<\/li>\n<\/ul>\n<p>The Farewell team can assist you with litigation involving these provisions.<\/p>\n\t\t\n\t<\/div>\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t            <\/div>\r\n        <\/div>\r\n        \t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The Constitutional Council issued its decision yesterday regarding the constitutionality of several provisions of the 2026 Finance Act (Decision No. 2026-901 DC of February 19, 2026). As a reminder, the Prime Minister had referred the matter to the Constitutional Council regarding: The Tax on Wealth-Management Holding Companies (Art. 7) The Dutreil Pact (Art. 8) Contribution-in-kind [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rs_blank_template":"","rs_page_bg_color":"","slide_template_v7":"","footnotes":""},"categories":[95],"tags":[],"class_list":["post-20134","post","type-post","status-publish","format-standard","hentry","category-wealth-taxation"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>LDF 2026: The Constitutional Council has issued its ruling on constitutionality - FareWell Tax<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/farewelltax.com\/en\/ldf-2026-the-constitutional-council-has-issued-its-ruling-on-constitutionality\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"LDF 2026: The Constitutional Council has issued its ruling on constitutionality - FareWell Tax\" \/>\n<meta property=\"og:description\" content=\"The Constitutional Council issued its decision yesterday regarding the constitutionality of several provisions of the 2026 Finance Act (Decision No. 2026-901 DC of February 19, 2026). As a reminder, the Prime Minister had referred the matter to the Constitutional Council regarding: The Tax on Wealth-Management Holding Companies (Art. 7) The Dutreil Pact (Art. 8) Contribution-in-kind [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/farewelltax.com\/en\/ldf-2026-the-constitutional-council-has-issued-its-ruling-on-constitutionality\/\" \/>\n<meta property=\"og:site_name\" content=\"FareWell Tax\" \/>\n<meta property=\"article:published_time\" content=\"2026-02-20T12:01:57+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-09-24T09:35:39+00:00\" \/>\n<meta name=\"author\" content=\"monagencede\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"monagencede\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/farewelltax.com\\\/en\\\/ldf-2026-the-constitutional-council-has-issued-its-ruling-on-constitutionality\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/farewelltax.com\\\/en\\\/ldf-2026-the-constitutional-council-has-issued-its-ruling-on-constitutionality\\\/\"},\"author\":{\"name\":\"monagencede\",\"@id\":\"https:\\\/\\\/farewelltax.com\\\/en\\\/#\\\/schema\\\/person\\\/a7191c8ed9ba0c73241b19c821fb2fa0\"},\"headline\":\"LDF 2026: The Constitutional Council has issued its ruling on constitutionality\",\"datePublished\":\"2026-02-20T12:01:57+00:00\",\"dateModified\":\"2026-09-24T09:35:39+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/farewelltax.com\\\/en\\\/ldf-2026-the-constitutional-council-has-issued-its-ruling-on-constitutionality\\\/\"},\"wordCount\":388,\"articleSection\":[\"Wealth Taxation\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/farewelltax.com\\\/en\\\/ldf-2026-the-constitutional-council-has-issued-its-ruling-on-constitutionality\\\/\",\"url\":\"https:\\\/\\\/farewelltax.com\\\/en\\\/ldf-2026-the-constitutional-council-has-issued-its-ruling-on-constitutionality\\\/\",\"name\":\"LDF 2026: The Constitutional Council has issued its ruling on constitutionality - FareWell Tax\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/farewelltax.com\\\/en\\\/#website\"},\"datePublished\":\"2026-02-20T12:01:57+00:00\",\"dateModified\":\"2026-09-24T09:35:39+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/farewelltax.com\\\/en\\\/#\\\/schema\\\/person\\\/a7191c8ed9ba0c73241b19c821fb2fa0\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/farewelltax.com\\\/en\\\/ldf-2026-the-constitutional-council-has-issued-its-ruling-on-constitutionality\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/farewelltax.com\\\/en\\\/ldf-2026-the-constitutional-council-has-issued-its-ruling-on-constitutionality\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/farewelltax.com\\\/en\\\/ldf-2026-the-constitutional-council-has-issued-its-ruling-on-constitutionality\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/farewelltax.com\\\/en\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"LDF 2026: The Constitutional Council has issued its ruling on constitutionality\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/farewelltax.com\\\/en\\\/#website\",\"url\":\"https:\\\/\\\/farewelltax.com\\\/en\\\/\",\"name\":\"FareWell Tax\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/farewelltax.com\\\/en\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/farewelltax.com\\\/en\\\/#\\\/schema\\\/person\\\/a7191c8ed9ba0c73241b19c821fb2fa0\",\"name\":\"monagencede\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/83cb38da72ec8c9d96857c85ded0816a606ed3cff15ed142515fb06a54d622f9?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/83cb38da72ec8c9d96857c85ded0816a606ed3cff15ed142515fb06a54d622f9?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/83cb38da72ec8c9d96857c85ded0816a606ed3cff15ed142515fb06a54d622f9?s=96&d=mm&r=g\",\"caption\":\"monagencede\"},\"url\":\"https:\\\/\\\/farewelltax.com\\\/en\\\/author\\\/monagencede\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"LDF 2026: The Constitutional Council has issued its ruling on constitutionality - FareWell Tax","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/farewelltax.com\/en\/ldf-2026-the-constitutional-council-has-issued-its-ruling-on-constitutionality\/","og_locale":"en_US","og_type":"article","og_title":"LDF 2026: The Constitutional Council has issued its ruling on constitutionality - FareWell Tax","og_description":"The Constitutional Council issued its decision yesterday regarding the constitutionality of several provisions of the 2026 Finance Act (Decision No. 2026-901 DC of February 19, 2026). As a reminder, the Prime Minister had referred the matter to the Constitutional Council regarding: The Tax on Wealth-Management Holding Companies (Art. 7) The Dutreil Pact (Art. 8) Contribution-in-kind [&hellip;]","og_url":"https:\/\/farewelltax.com\/en\/ldf-2026-the-constitutional-council-has-issued-its-ruling-on-constitutionality\/","og_site_name":"FareWell Tax","article_published_time":"2026-02-20T12:01:57+00:00","article_modified_time":"2026-09-24T09:35:39+00:00","author":"monagencede","twitter_card":"summary_large_image","twitter_misc":{"Written by":"monagencede","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/farewelltax.com\/en\/ldf-2026-the-constitutional-council-has-issued-its-ruling-on-constitutionality\/#article","isPartOf":{"@id":"https:\/\/farewelltax.com\/en\/ldf-2026-the-constitutional-council-has-issued-its-ruling-on-constitutionality\/"},"author":{"name":"monagencede","@id":"https:\/\/farewelltax.com\/en\/#\/schema\/person\/a7191c8ed9ba0c73241b19c821fb2fa0"},"headline":"LDF 2026: The Constitutional Council has issued its ruling on constitutionality","datePublished":"2026-02-20T12:01:57+00:00","dateModified":"2026-09-24T09:35:39+00:00","mainEntityOfPage":{"@id":"https:\/\/farewelltax.com\/en\/ldf-2026-the-constitutional-council-has-issued-its-ruling-on-constitutionality\/"},"wordCount":388,"articleSection":["Wealth Taxation"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/farewelltax.com\/en\/ldf-2026-the-constitutional-council-has-issued-its-ruling-on-constitutionality\/","url":"https:\/\/farewelltax.com\/en\/ldf-2026-the-constitutional-council-has-issued-its-ruling-on-constitutionality\/","name":"LDF 2026: The Constitutional Council has issued its ruling on constitutionality - FareWell Tax","isPartOf":{"@id":"https:\/\/farewelltax.com\/en\/#website"},"datePublished":"2026-02-20T12:01:57+00:00","dateModified":"2026-09-24T09:35:39+00:00","author":{"@id":"https:\/\/farewelltax.com\/en\/#\/schema\/person\/a7191c8ed9ba0c73241b19c821fb2fa0"},"breadcrumb":{"@id":"https:\/\/farewelltax.com\/en\/ldf-2026-the-constitutional-council-has-issued-its-ruling-on-constitutionality\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/farewelltax.com\/en\/ldf-2026-the-constitutional-council-has-issued-its-ruling-on-constitutionality\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/farewelltax.com\/en\/ldf-2026-the-constitutional-council-has-issued-its-ruling-on-constitutionality\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/farewelltax.com\/en\/"},{"@type":"ListItem","position":2,"name":"LDF 2026: The Constitutional Council has issued its ruling on constitutionality"}]},{"@type":"WebSite","@id":"https:\/\/farewelltax.com\/en\/#website","url":"https:\/\/farewelltax.com\/en\/","name":"FareWell Tax","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/farewelltax.com\/en\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/farewelltax.com\/en\/#\/schema\/person\/a7191c8ed9ba0c73241b19c821fb2fa0","name":"monagencede","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/83cb38da72ec8c9d96857c85ded0816a606ed3cff15ed142515fb06a54d622f9?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/83cb38da72ec8c9d96857c85ded0816a606ed3cff15ed142515fb06a54d622f9?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/83cb38da72ec8c9d96857c85ded0816a606ed3cff15ed142515fb06a54d622f9?s=96&d=mm&r=g","caption":"monagencede"},"url":"https:\/\/farewelltax.com\/en\/author\/monagencede\/"}]}},"_links":{"self":[{"href":"https:\/\/farewelltax.com\/en\/wp-json\/wp\/v2\/posts\/20134","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/farewelltax.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/farewelltax.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/farewelltax.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/farewelltax.com\/en\/wp-json\/wp\/v2\/comments?post=20134"}],"version-history":[{"count":1,"href":"https:\/\/farewelltax.com\/en\/wp-json\/wp\/v2\/posts\/20134\/revisions"}],"predecessor-version":[{"id":20137,"href":"https:\/\/farewelltax.com\/en\/wp-json\/wp\/v2\/posts\/20134\/revisions\/20137"}],"wp:attachment":[{"href":"https:\/\/farewelltax.com\/en\/wp-json\/wp\/v2\/media?parent=20134"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/farewelltax.com\/en\/wp-json\/wp\/v2\/categories?post=20134"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/farewelltax.com\/en\/wp-json\/wp\/v2\/tags?post=20134"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}