France - 2026 Finance Bill: The National Assembly votes for a major reform of the exit tax and French expatriates
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2026 Finance Bill: the National Assembly adopts a major reform of the Exit Tax
The examination of the finance bill for 2026 introduces a significant change in the Exit Tax regime, with the adoption of amendment no. I-807. This measure deepens the modification of Article 167 bis of the General Tax Code and marks a turning point for international taxation, particularly for taxpayers considering expatriation and holding significant unrealized capital gains.
Why is the Exit Tax regime being tightened?
The authors of the amendment consider that the lightened regime resulting from 2019 has reduced the effectiveness of the Exit Tax to nothing. The return of the long period is presented as a response to tax optimization strategies and as a way of adapting the measure to economic realities, in which the valuation of a company often occurs several years after its creation.
Conclusion
The adoption of amendment no. I-807 as part of the 2026 finance bill marks an important step for French international taxation. If the measure is confirmed by the Senate and integrated into the final version of the finance law, the Exit tax will become a central mechanism in the analysis of any expatriation involving significant financial assets.
Entrepreneurs, investors and managers will now have to anticipate these constraints in their tax and wealth strategy.
What the amendment would change
Amendment I-807 essentially aims to restore the mechanism to its initial, much stricter version. Several major modifications are proposed:
Re-establishment of the 15-year period: France could once again tax unrealized capital gains over a long period after the taxpayer's departure.
Strengthening the conditions for the deferral of payment: the rules would be tightened, with more requirements depending on the destination country.
Regulation of restructuring operations (contributions, exchanges, mergers) in order to avoid certain schemes allowing tax avoidance.
The stated objective is clear: to fight more effectively against departures motivated by tax optimization and to reduce the "blind spots" of the current system.
What are the concrete impacts?
For the taxpayers concerned, the amendment would mark a return to a significantly more restrictive regime. The 15-year monitoring period means that the tax could become payable again if the shares are sold within this interval, even long after departure. This represents a significant financial risk, particularly for entrepreneurs whose share value can fluctuate significantly over time.
Reporting requirements would also be strengthened: maintaining precise information on the shares for such a long period exposes them to risks of errors or litigation. Finally, restructuring operations could become tax-sensitive, as some could call into question the deferral of payment.
An example to understand
Let us take the case of a French entrepreneur who holds 2 million euros in unrealized capital gains on his company's shares and moves to Canada.
Today, if he does not sell his shares within two years of his departure, the tax is due.
With the amendment, this sword of Damocles would remain suspended for 15 years.
Why this step backward?
For the authors of the amendment, the 2019 reform stripped the Exit tax of its substance. Reducing the timeframe to 15 years would, according to them, allow a return to a truly deterrent mechanism adapted to current economic realities, where the valuation of a company can occur long after the departure of its founder.
Conclusion
Update : amendment no. I-807 was ultimately not kept in the final text. The 2026 Finance Act, published in the Journal officiel on 20 February 2026, does not change the exit tax time limits. The regime resulting from the 2019 reform therefore still applies, with relief after 2 years, or 5 years where the shares exceed €2.57 million. The debate shows, however, that the issue may come back in future finance bills.
The adoption in the first reading of amendment no. I-807 marks a major turning point in international taxation. The proposed measure is clearly stricter and aims to make the exit tax fully operational, after several years during which its effectiveness had been reduced.
If such a measure were adopted in the future, the exit tax would once again become a major instrument in the fight against international tax optimization, but also a decisive factor to be taken into account for any entrepreneur or investor considering expatriation.
