The 20% French wealth-holding company tax (article 235 ter C of the French Tax Code) applies to financial years ending on or after 31 December 2026. For a business owner or family holding a yacht, aircraft, homes for personal use or other luxury assets through a company, there are two routes: restructuring the holding company in France or moving both the structure and the family's residence to Switzerland. The second only works if both move, and it has its own cost (exit tax, transfer of seat). The firm, present in Paris and Geneva, costs both.
Created by article 7 of Law no. 2026-103 of 19 February 2026, the wealth-holding company tax is levied every year, at 20%, on the market value of luxury assets held by a company with at least EUR 5 million of assets, at least 50% controlled by an individual and close family (or over which an individual exercises de facto decision-making power), and whose passive income exceeds half of its revenue. The taxable assets form a closed list: hunting and fishing assets, vehicles, yachts and pleasure boats, aircraft, jewellery and precious metals, racing or show horses, wines and spirits, homes reserved for the shareholder's own use.
Who pays depends on the company's seat. A holding company with its seat in France pays the tax itself, whatever the residence of its director: the director leaving alone is not enough. A holding company with its seat abroad is caught where a controlling person, within the meaning of the statute, is tax resident in France; the tax is then due by that person, unless they show that the choice of seat and the holding of the shares do not have the main purpose of circumventing French tax law. A close family member who stays in France and holds rights in the structure or exercises decision-making power over it can therefore keep it within scope; the analysis is carried out on the full group chart.
A relocation therefore requires the structure's seat and the residence of every controlling person within the meaning of the statute to be dealt with together. Each has a cost: exit tax on unrealised gains on shares for the individuals who leave (article 167 bis of the French Tax Code) and, for a French company, the transfer of its seat outside the European Union and the EEA being treated in principle as a cessation of business, with immediate tax on profits and gains not yet taxed (article 221, 2 of the French Tax Code). In addition, a French public limited company can only change nationality while keeping its legal personality if a special convention exists with the host State (Commercial Code, art. L. 225-97): in practice, leaving involves a winding-up followed by incorporation in Switzerland, a contribution or a sale.
For high-income households, the differential contribution on high incomes (article 224 of the French Tax Code) also ensures a minimum tax of 20% of income above EUR 250,000 (EUR 500,000 for a couple). Taken together, these rules call for a costed decision rather than a reflex departure.
Restructuring acts on the assets and activity of the holding company; relocation acts on the family's residence and where the structure is based. The right choice depends on the wealth, the time horizon and the life plan.
Take the luxury assets out of the company, put them to genuine business use (commercial yacht charter, home let at market rent) or change the activity so that operating income becomes the majority. The director stays in France. The options and their cost are set out on the wealth-holding company tax page; the 235 ter C check first tests whether the tax applies.
Move the family's tax residence to Switzerland, where appropriate under expenditure-based taxation (lump-sum taxation), and organise where the structure is based. Lump-sum taxation has its own Swiss conditions (in particular no gainful activity in Switzerland). Relevant where the life plan supports it and all controlling persons within the meaning of the statute leave. See our analysis of the Geneva lump-sum tax regime (in French).
Exit tax applies to unrealised gains on shares at the standard rate of 31.4% for a departure in 2026 (12.8% income tax and 18.6% social levies), subject to the option for the progressive scale and the specific regime of deferred gains. For a move to Switzerland, deferral of payment is not automatic: it is granted on request, with a tax representative and security. The tax is cancelled if the shares are kept for two years, or five years above EUR 2.57 million. Moving a French company to Switzerland carries its own corporate income tax cost, whatever the technique used.
The choice involves two legal systems: the France-Switzerland tax treaty of 9 September 1966 as amended, the residence rules of both States, documentation of the structure's substance. The firm's presence in Paris and Geneva allows both sides to be handled together.
Jonathan Bensaid, founding lawyer, advises business owners, families and family offices on the choice between restructuring the holding company in France and relocating to Geneva: holding company tax exposure audit, costing of exit tax and the transfer of seat, coordination with Swiss advisers. The firm is admitted to the Paris and Geneva Bars.
No, if the holding company keeps its seat in France: the company is then liable for the tax, whatever the residence of its director. If the holding company has its seat abroad, it remains caught as long as a controlling person within the meaning of article 235 ter C, including a close family member who holds rights or exercises decision-making power, is tax resident in France; the tax is then due by that person. The relocation must therefore cover both the structure and the residence of every controlling person.
Not as a simple change of registered office. For a public limited company, changing nationality while keeping its legal personality requires a special convention between France and the host State (Commercial Code, art. L. 225-97). In practice, the operation involves a winding-up followed by incorporation in Switzerland, a contribution or a sale. For tax purposes, transferring the seat outside the European Union and the European Economic Area is in principle treated as a cessation of business (article 221, 2 of the French Tax Code): profits and gains not yet taxed become taxable immediately. Each route must be costed.
Exit tax (article 167 bis of the French Tax Code) applies to individuals resident in France for at least six of the ten years before leaving, where their shares represent at least 50% of a company's profits or are worth more than EUR 800,000. The standard rate is 31.4% for a departure in 2026, unless the progressive scale is elected. For Switzerland, deferral of payment is granted on request, with security. The tax is cancelled if the shares are kept for two years after departure, or five years where their value exceeds EUR 2.57 million.
Often, yes. Taking the luxury assets out of the holding company, putting them to genuine business use or changing the activity can take the company out of scope without moving the family. Relocation makes sense where the life plan is real and the wealth goes beyond the tax question alone. The firm compares both routes on figures. The options are detailed on the wealth-holding company tax page.
The firm, admitted to the Paris and Geneva Bars, checks whether the holding company is liable, models both routes (restructuring in France, relocation to Switzerland) taking into account exit tax, the transfer of seat and the differential contribution on high incomes, then implements the chosen solution with advisers in both countries.
Related resources on the holding company tax, tax residence and Switzerland.
Scope, taxable assets, calculation, 31 December 2026 deadline and 2027 finance bill.
Voir la page Interactive toolSix questions to find out whether your holding company is within scope.
Voir la page Tax alertExpenditure-based taxation: thresholds, conditions and the France-Switzerland treaty.
Voir la page Area of expertiseTransfer of tax residence, exit tax and bilateral tax treaties.
Voir la page Lead counselWealth structures and France-Switzerland tax residence.
Voir la pageConfidential initial discussion: checking whether the holding company tax applies, costed comparison of restructuring in France and relocation to Geneva (exit tax, transfer of seat, lump-sum taxation), then coordinated implementation between Paris and Geneva.
© BENSAID Avocats. This article is for information only and does not constitute personalised legal advice. Sources: Law no. 2026-103 of 19 February 2026 (Finance Act for 2026), art. 7; French Tax Code art. 235 ter C, 167 bis, 221 and 224; Commercial Code art. L. 225-97; Constitutional Council decision no. 2026-901 DC of 19 February 2026; France-Switzerland tax treaty of 9 September 1966, as amended. Updated: 5 October 2026.
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