France’s 2027 Finance Bill After the Assembly Vote: What Businesses and Expats Should Watch

France’s 2027 Finance Bill reached a turning point on 4 November 2026, when the National Assembly rejected its revenue section. That does not mean the proposed tax measures have disappeared. The bill continues through Parliament, and companies, investors and expats still need to know what could change.

This article explains where the process stands and which proposals matter most for international taxpayers. Everything below is a proposal, not law, and the final text may differ.

Where Does the 2027 Finance Bill Stand?

The Government presented the bill on 1 October 2026. Debate in the National Assembly began on 13 October. On 4 November, the Assembly rejected the first part of the bill, covering revenue. Under its rules, the Assembly then treats the whole bill as rejected at first reading.

In practice, this has three main consequences:

• the amendments adopted by deputies during the debate fall away;
• the text goes to the Senate in the Government’s version, with public debate expected from 20 November;
• the final content remains open, and the route to adoption is uncertain because the Government has no majority in the Assembly.

The tax measures summarised below come from the Government’s text, drawing on analyses by KPMG, Mayer Brown and Business France.

2027 Finance Bill: Key Proposals for Businesses

Large Company Surtax Extended at a Lower Rate

The exceptional contribution on large companies’ profits would apply for one more year, for groups with turnover of at least €1.5 billion. The rate would fall to 15.7%, or 31.4% from €3 billion of turnover, compared with 20.6% and 41.2% before. French subsidiaries of large international groups should check how turnover is measured for their tax group.

Accelerated Depreciation for Industry 4.0

Industrial SMEs and mid-sized companies could deduct an additional 40% of the cost of eligible new equipment, rising to 80% for small companies, with higher rates in certain regional aid zones. The scheme would cover items such as robotics, additive manufacturing, sensors and some software acquired between 1 January 2027 and 31 December 2029.

Support for Business Transfers

A proposed package, the Papin pact, would support the transfer of small and medium-sized businesses, particularly to employees, through additional depreciation and reduced transfer duties. As a result, foreign buyers looking at French SMEs should check whether they could fit within the conditions.

What Stays in Place

• The research tax credit (CIR) is retained, according to Business France.
• The CVAE business tax remains on course for complete abolition in 2030.
• The scope of the green industry investment tax credit (C3IV) would be extended.

2027 Finance Bill: Key Proposals for Expats

Impatriate Regime Maintained

The bill provides for the continuation of the impatriate tax regime, which offers certain exemptions to employees and executives recruited from abroad. Overall, this is positive news for anyone planning a relocation to France, although the conditions still have to be met.

Income Tax Brackets Indexed

The bill would index the income tax scale to inflation for income earned in 2026 and subsequent years.

Exit Tax Tightened

Under the proposal, the payment deferral linked to certain capital gains would end when the owner transfers the relevant shares by way of gift. The proposed effective date is 1 October 2026, before the bill’s adoption. For this reason, entrepreneurs who are planning both a departure from France and a family transfer of shares should take advice now. Our article on the French exit tax covers the basics.

Foreign Life Insurance Contracts

Favourable tax treatment would become subject to new conditions, including for contracts with insurers established outside France. Premiums paid from 1 October 2026 would need to be in cash, and limits would apply to the underlying assets. As a result, international clients holding Luxembourg or other foreign policies should review how their contracts are structured.

Severance Payments

The bill would introduce a single income tax exemption cap for payments on termination of employment, set at one annual social security ceiling (€48,060 in 2026). However, this is a substantial reduction for senior employees and executives, and the measure could apply to payments received in 2026.

Temporary Relief on Cash Gifts

Between 1 January and 30 June 2027, the exemption for certain family cash gifts would rise from €31,865 to €50,000. A flat 6% rate could also apply to gifts up to €100,000 per donor and recipient where the recipient is under 50.

2027 Finance Bill: Key Proposals for Property Investors

Furnished rental investors are directly affected. The bill would cap the depreciation deduction under the non-professional furnished rental status (LMNP) at 2.5%, with a limit of €7,000 per year per tax household. For tourist furnished rentals, the figures would be 1.5% and €5,000. The cap would not cover certain student and senior residences, and owners could no longer carry forward amounts above it for financial years ending from 1 January 2027.

Therefore, non-resident owners who let furnished property in France should revisit their projected net return. For the broader context, see our guide on the taxes that apply when buying property in France.

Tax Enforcement Measures in the 2027 Finance Bill

The bill would extend the authorities’ power to seize assets held by third parties to securities accounts, allowing forced sales of securities to recover unpaid tax. It would also make permanent a system that collects public content from online platforms to detect undeclared activity or false tax residence claims. These proposals are a reminder that you need to document a tax residence position, not just assert it.

Changes That Do Not Depend on This Bill

Some important changes will go ahead, whatever happens to the 2027 Finance Bill:

• The Code on Taxes on Goods and Services is due to absorb French VAT rules from 1 January 2027.
• The simplified VAT regime is due to end for transactions on which VAT becomes chargeable from 1 January 2027.
• The e-invoicing reform continues to roll out.

How to Prepare for the 2027 Finance Bill

1. Do not act on headlines alone. The measures can still be changed or dropped.
2. Identify the proposals with early effective dates. For example, several would apply from 1 October 2026 or to 2026 income.
3. Review year-end decisions. Think through planned share gifts, severance agreements, equipment purchases and property investments.
4. Model scenarios. Compare your position with and without the measure rather than waiting for the final text.
5. Follow the Senate debate. Then revisit your plans once the final law appears.

Frequently Asked Questions

Does the Assembly vote mean the 2027 Finance Bill is cancelled?

No. The rejection at first reading ends the Assembly’s first examination, and the bill continues to the Senate.

Will the 2027 Finance Bill apply from January 2027?

It depends on the measure and the final text. Some have proposed effective dates in 2026 and others apply from 2027 or later.

Does the 2027 Finance Bill end the impatriate regime?

No. The bill as presented maintains the regime.

Prepare for 2027 With Expert Guidance

When tax rules are moving, the best decisions are based on your own figures. ESCEC International supports expatriates, entrepreneurs and international companies with French tax matters, in English.

Wondering how the 2027 Finance Bill could affect you?

Book a session with an ESCEC International expert to review your personal or business position before year-end.

This article reflects information available on 6 November 2026. The bill is still going through Parliament, and its content may change. It does not replace advice on your specific situation.