French exit tax

Holding companies and French exit tax

French exit tax and holding companies: contribution-deferral, article 150-0 B ter, reinvestment and founder planning.

This English page mirrors the French reference page for international clients. It is written for decision-makers who need a clear first reading before a tailored French tax analysis.

A holding company is not a magic shield

Interposing a holding company can be efficient for governance, reinvestment and transmission, but it does not automatically neutralise French exit tax.

Contribution-deferral regimes

Where shares have been contributed to a holding company, the deferred gain must be identified. A departure from France may bring that deferred gain into the exit tax analysis.

Reinvestment commitments

French contribution-deferral regimes may impose reinvestment conditions after a sale by the holding company. A relocation abroad does not remove these conditions.

Valuation of the holding

The value of the holding company and its underlying assets must be documented. The French tax authorities may challenge the valuation if the file is weak.

Operational planning

Before leaving France, the taxpayer should map the group, past contributions, expected sales, financing and family governance objectives.

This page provides general information only. French tax residence, exit tax, impatriation and cross-border reporting must always be analysed on the basis of the taxpayer’s facts, documents and applicable treaties.
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