{"id":263,"date":"2025-09-02T10:35:21","date_gmt":"2025-09-02T10:35:21","guid":{"rendered":"https:\/\/www.trainy.co\/blog\/?p=263"},"modified":"2025-09-02T10:35:21","modified_gmt":"2025-09-02T10:35:21","slug":"law-finance-key-measures","status":"publish","type":"post","link":"https:\/\/www.trainy.co\/blog\/en\/law-finance-key-measures\/","title":{"rendered":"Finance law 2025: key measures"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Adopted on February 14, 2025, the Finance Law aims to strengthen France\u2019s sovereignty and credibility. It initiates the recovery of public finances to bring the deficit below <strong>3% by 2029<\/strong>. In 2025, the state budget deficit will be<strong> \u20ac139 billion,<\/strong> improving by<strong> \u20ac7.9 billion<\/strong> compared to 2024, with the public deficit reduced to <strong>5.4% of GDP.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This article outlines the key measures of the law.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp; &nbsp; &nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Tax scale adjustment<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The income tax brackets for 2024 will be<strong> increased by 1.8%<\/strong> to account for inflation. Similarly, the withholding tax scale will be indexed to inflation starting in January 2025.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The new tax brackets:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n\n\n\n<li>Up to \u20ac11,497: 0% tax rate<\/li>\n\n\n\n\n\n\n<li>\u20ac11,520 to \u20ac29,315: 11% tax rate<\/li>\n\n\n\n\n\n\n<li>\u20ac29,373 to \u20ac83,823: 30% tax rate<\/li>\n\n\n\n\n\n\n<li>\u20ac83,988 to \u20ac180,294: 41% tax rate<\/li>\n\n\n\n\n\n\n<li>Above \u20ac180,294: 45% tax rate<\/li>\n\n\n\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp; &nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Environmental measures<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n\n\n\n<li>The<strong> eco-tax<\/strong> (CO2 and weight-based penalties) on polluting vehicles is reinforced.<\/li>\n\n\n\n\n\n\n<li>The reduced VAT rate for the purchase and installation of gas boilers is abolished.<\/li>\n\n\n\n\n\n\n<li>The <strong>solidarity tax on airline tickets<\/strong> (\u201cChirac tax\u201d) is increased, though less than initially planned. From March 1, 2025, the fee for economy-class flights within France or Europe will rise to \u20ac7.40 (from \u20ac2.63 today).<\/li>\n\n\n\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Read more: <a href=\"https:\/\/www.trainy.co\/en\/blog\/green-finance-driver-ecological-transition\">Green finance: a key driver of ecological transition<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp; &nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Housing access measures<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n\n\n\n<li>The<strong> zero-interest loan (PT<\/strong>Z) is reinstated nationwide for purchasing new homes, either individual or collective, until the end of 2027.<\/li>\n\n\n\n\n\n\n<li><strong>Monetary gifts<\/strong> within families for buying, constructing, or renovating a home will be exempt from gift tax until the end of 2026. The recipient must use the funds within six months and keep the property as a primary residence or rent it out for at least five years.<\/li>\n\n\n\n\n\n\n<li>The \u201c<em><strong>Loc\u2019Avantages\u201d<\/strong><\/em> program (formerly \u201cLouer Abordable\u201d), which grants landlords a tax reduction based on rent levels, is extended until 2027.<\/li>\n\n\n\n\n\n\n<li>The<strong> taxation of furnished rental properties changes<\/strong>: depreciation deductions that were previously excluded from capital gains calculations will now be reintegrated when the property is sold. This applies to sales occurring after the law\u2019s enactment.<\/li>\n\n\n\n\n\n\n<li>The<strong> housing tax<\/strong> is now focused solely on secondary residences, exempting emergency shelters and other specific properties.<\/li>\n\n\n\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp; &nbsp; &nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">High-income surcharge<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A new contribution ensures a minimum 20% tax rate for top earners. It applies to French tax residents with a reference taxable income exceeding:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n\n\n\n<li>\u20ac250,000 for individuals<\/li>\n\n\n\n\n\n\n<li>\u20ac500,000 for couples<\/li>\n\n\n\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Certain exceptional incomes are partially included. The measure is limited to one year (instead of the initially planned three years) and is expected to generate \u20ac2 billion in revenue.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If total paid taxes already reach 20% of income, the contribution does not apply. A smoothing mechanism is provided for adjusted incomes below:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n\n\n\n<li>\u20ac330,000 for individuals<\/li>\n\n\n\n\n\n\n<li>\u20ac660,000 for couples<\/li>\n\n\n\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">This contribution applies to 2025 incomes, with a 95% advance payment due in December 2025.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp; &nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Taxation of \u201cmanagement packages\u201d<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The taxation of gains from \u201cmanagement packages\u201d is revised. A portion of the gain will be taxed as capital gains (maximum 34%), and the rest as salary income (maximum 59%), based on a financial performance ratio. An additional 10% employee contribution applies to sales completed between the law\u2019s enactment and December 31, 2027.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp; &nbsp; &nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">BSPCE stock option scheme changes<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Starting January 1, 2025, shares acquired through BSPCE stock options can no longer be placed in a PEA (equity savings plan). Instead:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n\n\n\n<li>The exercise gain will be treated as salary income with a flat tax.<\/li>\n\n\n\n\n\n\n<li>The capital gain on sale will be taxed under capital gains rules, benefiting from deferred taxation.<\/li>\n\n\n\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp; &nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Corporate tax measures<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n\n\n\n<li>A temporary <strong>surtax will apply to companies with revenue exceeding \u20ac1 billion i<\/strong>n France, expected to generate \u20ac8 billion.<\/li>\n\n\n\n\n\n\n<li>Corporate tax (IS) will be<strong> increased by a 41.2%<\/strong> surtax for companies with revenue over \u20ac3 billion, raising the maximum corporate tax rate to 35.3%.<\/li>\n\n\n\n\n\n\n<li>The<strong> financial transaction tax (TTF)<\/strong> rate will <strong>increase from 0.3% to 0.4%<\/strong>, generating an additional \u20ac500 million.<\/li>\n\n\n\n\n\n\n<li>A new tax targets companies frequently using share buybacks followed by cancellation, applying to those with revenue above \u20ac1 billion for operations between March 2024 and February 2025.<\/li>\n\n\n\n\n\n\n<li>EDF, now 100% state-owned, will be required to pay a<strong> \u20ac2 billion exceptional dividend<\/strong> starting in 2026 under the post-Arenh scheme.<\/li>\n\n\n\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">These measures reflect the government\u2019s ambition to strengthen public finances while ensuring social and environmental responsibility.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The 2025 Finance Law was adopted in February\u2014discover its key measures in this article!<\/p>\n","protected":false},"author":3,"featured_media":710,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[12],"tags":[],"class_list":["post-263","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - 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