A consensus appears to have been reached in the French National Assembly for an increase in the CSG social charge on certain types of capital income.
Presented by the government as a Contribution Financière pour l’Autonomie (CFA), the measure marks a significant shift in the taxation of savings, creating a distinction between two categories of income: those that remain taxed at the current 9.2% rate, and those that will now face a higher rate of 10.6%.
This increase affects only a portion of what is considered ‘pure’ financial savings. Dividends, capital gains from the sale of securities, interest from taxable bank accounts, and gains on crypto assets will now be subject to a total social levy of 18.6%, where previously the total charge was 17.2%.
In practice, the flat tax (Prélèvement Forfaitaire Unique - PFU) applied to such income will rise from 30% to 31.4%, comprising 12,8 % income tax + 18.6% social charges.
Holders of equity savings plans (Plan d’Épargne en Actions - PEA) will also see higher taxes applied to early withdrawals or social contributions at exit.
Rental income from unfurnished property and assurance vie, as well as capital gains on the sale of real estate and interest from regulated savings accounts (PEL, CEL and PEP) will remain taxed at current rates. The position on rental income from furnished lettings is entirely unclear, but it would appear not to be exempt, with the exception of professional landlords (LMP).
Beyond the rate increase, the sting in the tail for some will be that the higher rate will be retroactive to 2025 for capital gains on the sale of shares. In other words, a sale completed in 2025 will be taxed at the new rate during the 2026 filing season, even though the transaction occurred before the law was passed.
For dividends and other ongoing investment income, the timeline is more conventional: only payments made from 1st January, 2026 onward will be subject to the increase. Financial institutions will automatically apply the new flat tax starting on the first day of the year.
The bill must still pass through the Senate, but if disagreements arise, the National Assembly will have the final say, in a few days’ time. At this stage, barring an unlikely reversal, the targeted CSG increase is on track to be definitively adopted.
The rates of social charges on salaries and pension income remain unchanged.
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