On Friday, 24 October 2025, the National Assembly will get down to business with the start of discussions on the draft finance bill (PLF) for 2026. As the text presented to the committee was rejected, MPs will start again from the draft presented to the Council of Ministers on 14 October by the Minister for the Economy, Roland Lescure, and the Minister for Public Accounts, Amélie de Montchalin. What are the main measures proposed to contain the deficit?

On the expenditure side?

The main avenues for reducing expenditure tend to involve cost transfers. These include freezing income tax rates in 2026, which will mathematically increase taxes for those whose incomes have risen, even if this rise corresponds to inflation. But also the inclusion of compensation for long-term illness (ALD) in income subject to income tax, the reduction in the tax exemption for biofuels, and the replacement of the 10% allowance on pensions (within certain limits) with a flat-rate allowance of €2,000.

What about revenue?

Discussions are focusing on what will be required of high-income households or those with large assets. Whether through the ‘Zucman Tax’, a tax on holding companies, a new wealth tax, an exit tax (for taxpayers leaving the country), or the extension of the CDHR, these issues are at the heart of the discussions!

Today, no one is satisfied with this bill.

It leans too far to the left for some, too far to the right for others. What is certain is that since the debate began, we have heard many proposals, including the abolition of the allowance on capital gains from the sale of the main residence, changes to the taxation of the PER (retirement savings plan) upon payment or death, and the transfer of social housing to its tenant after 20 years.

What is certain is that the parliamentary process is likely to be fraught with difficulties, in a chamber where majorities are fragile and opposition is determined. It remains to be seen whether MPs will be able to reach a compromise by the end of the year, or whether the 2026 budget will be the scene of a new political standoff.

It is therefore important not to overreact when we have no visibility on what will happen in December. We are taking a proactive approach and taking the necessary measures for our clients. If you too would like support with real estate, financial, inheritance, tax or social investments, Finankap's team of wealth management advisers is here to help! Contact us!

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