«Who can pay an inheritance of 45 million euros?» How the Dutreil pact keeps companies French

The future of the Dutreil pact, a French tax incentive designed to keep family businesses French, is a key issue in the upcoming presidential elections. This pact allows for a 75% reduction on the value of company shares transferred during inheritance or donation, contingent on the beneficiaries retaining ownership for several years. Without this regime, economic circles warn that numerous French companies would likely be acquired by foreign investors.

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Who can pay an inheritance of 45 million euros?

During a recent debate among leading presidential contenders, the pact's fate was a significant point of contention. Candidates from the right and the National Rally, such as Bruno Retailleau and Marine Le Pen, pledged to uphold the Dutreil pact. In contrast, Raphaël Glucksmann advocated for its reform, deeming it a tool for tax optimization. Marine Tondelier also indicated a willingness to change the system, stating, "We don't want to abolish it, obviously, but yes, we are going to change it." Jean-Luc Mélenchon, whose party has previously called for the regime's repeal, remained silent on the matter during the debate.

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Without a tax exemption regime, ... many of them would have been sold to foreign investors.

The discussion highlights a political divide over business taxation and national ownership. While politicians debate its merits and potential for reform, business leaders emphasize its crucial role in preserving the French identity of their enterprises. The debate underscores the tension between fiscal policy, economic competitiveness, and national sovereignty in the context of global investment.

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We don't want to abolish it, obviously, but yes, we are going to change it.