[France] 2026 Finance Law raises flat tax and impacts expats and cross-border commuters

In France, the newly enacted 2026 Finance Law raises the prélèvement forfaitaire unique, or ‘flat tax’, from 30 per cent to 31.4 per cent, VisaHQ reports.

The increase is the result of a 1.4 point rise in social contribution charges (CSG) on capital income, which climbed from 17.2 per cent to 18.6 per cent.

The higher rate reportedly applies to dividends, bond coupons, capital gains on securities and cryptocurrency disposals, as well as certain pension exit payments (PER). 

Life insurance products and real estate gains will retain the previous 17.2 per cent social levy. However, expats and cross-border commuters with equity compensation or portfolio income will see an immediate increase in withholding.

Source: VisaHQ

In France, the newly enacted 2026 Finance Law raises the prélèvement forfaitaire unique, or ‘flat tax’, from 30 per cent to 31.4 per cent, VisaHQ reports.

The increase is the result of a 1.4 point rise in social contribution charges (CSG) on capital income, which climbed from 17.2 per cent to 18.6 per cent.

The higher rate reportedly applies to dividends, bond coupons, capital gains on securities and cryptocurrency disposals, as well as certain pension exit payments (PER). 

Life insurance products and real estate gains will retain the previous 17.2 per cent social levy. However, expats and cross-border commuters with equity compensation or portfolio income will see an immediate increase in withholding.

Source: VisaHQ