France: National Assembly adopted Finance Bill for 2026

On 2 February 2026, the National Assembly adopted the Finance Bill for 2026 (T.A. No. 227), which maintains the Real Estate Wealth Tax (IFI) and, in Article 7, introduces a tax on assets not allocated to an operational activity of wealth management holding companies. The measure applies to wealth management holding companies with assets valued at EUR 5 million or more, where passive income accounts for more than 50% of total revenue. The Bill establishes a flat rate of 20%, calculated on the market value of certain assets deemed not to be allocated to an operational activity. These include yachts, private aircraft and luxury vehicles not used for business purposes, as well as jewellery, precious metals, racehorses, fine wines and luxury alcoholic beverages, and residential properties reserved for the personal use of shareholders, including those occupied free of charge or at below-market rent. The Bill does not introduce a general classification of digital assets as unproductive wealth for individuals, nor does it establish a 1% flat-rate tax on individual net assets exceeding EUR 2 million. Instead, it retains the existing IFI framework for individuals while targeting luxury assets held within corporate structures. The revenue impact of the measure is offset through the introduction of an additional excise duty on tobacco under the Code of Taxation on Goods and Services.