The French exit tax is an important rule for people who plan to leave France and move their tax residence abroad. In 2026, there were political discussions about changing this tax, but in the end, the main system stayed the same. However, there are a few updates that taxpayers should understand.
During debates on the 2026 Finance Law, the Rassemblement National proposed to increase the monitoring period of the exit tax back to 15 years. This would have reversed the reform introduced in 2019 under Emmanuel Macron, which reduced the period to 2 or 5 years.
Although this proposal was initially accepted by the Assemblée nationale, it was not included in the final law. The current rules therefore remain unchanged. The law was officially adopted on February 19, 2026.
The exit tax applies only if both conditions below are met:
You have been a French tax resident for at least 6 of the last 10 years before leaving;
You own:
Shares worth €800,000 or more; or
Shares representing at least 50% of a company’s profits.
This means the tax mainly targets people with large investments or business owners.
The exit tax applies to unrealized capital gains (profits that have not yet been received).
In 2026, the total tax rate is 31.4%, including:
12.8% income tax;
18.6% social contributions.
The increase comes from a rise in social contribution charges in 2026.
In many cases, you do not have to pay the tax immediately. Instead, payment can be delayed (this is called a deferral).
Automatic deferral:
If you move to an EU or EEA country, the deferral is automatic and no guarantee is required.
Deferral on request:
If you move to a country outside the EU/EEA, you must request the deferral. You may also need to provide guarantees (for example, a bank guarantee or share pledge).
The tax is cancelled if you keep your shares for a certain period:
2 years if the value is below €2.57 million;
5 years if the value is above €2.57 million.
If you sell the shares before this period ends, the tax becomes immediately payable.
If you return to France and become a tax resident again, the exit tax is cancelled in all cases.
A real change in 2026 concerns the Contribution Différentielle sur les Hauts Revenus (CDHR), which is a minimum tax of 20% for high-income individuals.
Now, people leaving France must pay this tax in the year of departure. It applies to:
Income earned before leaving;
Business income since the last financial year;
Income earned but not yet received.
This creates an additional tax obligation for high earners.
Even after leaving France, you must complete an annual tax declaration during the deferral period. You need to confirm:
That you still own the shares;
That your move abroad was not mainly for tax reasons.
If you fail to declare, the tax becomes immediately due.
In 2026, the French exit tax rules remain mostly stable. However, higher social charges and the new CDHR rule increase the overall tax burden for some taxpayers.
Before leaving France, it is important to plan carefully, especially regarding timing, share value, and your destination country.
Request a free initial consultation to assess your situation and plan your departure with clarity and control.
