The French new Anti-Fraud Law which came into force on 27 June 2026 reinforces France’s commitment to tax transparency and increases compliance obligations and scrutiny for international individuals, trustees, family offices and overseas property-holding structures.
The new legislation introduces mandatory tax professional involvement for transfers of shares in companies holding French real estate, increases scrutiny of digital assets, clarifies the tax treatment of certain crypto-assets, extends tax statutory limitation periods, strengthens cross-referencing and recovery powers between public authorities. The law introduces additional obligations for French-connected trusts when the specific inheritance tax charge is due and payable by the trustee. It also requires the systematic filing of the annual 3% tax form for all non-French property holding entities, as the only condition to obtain the exemption from this levy.
Enhanced Scrutiny of Digital Assets & Clarification on the Tax Treatment of Certain Crypto-Assets
The law reflects the French authority’s focus on cryptocurrency holdings and other digital assets through:
These provisions strengthen the authority’s ability to identify, assess and recover tax liabilities linked to crypto-assets.
Article 91 confirms the tax treatment applicable to gains arising on the disposal of non-fungible tokens (NFTs) and other unique crypto-assets.
Rather than automatically falling within the standard tax regime applicable to cryptocurrencies, gains will now be taxed according to the nature of the underlying asset or right represented by the token. This measure is intended to provide greater certainty in an area where tax treatment has not always kept pace with technological developments.
Individuals holding or transacting in crypto-assets, particularly NFTs and other tokenised assets, should ensure that the characteristics of the underlying asset are properly analysed when assessing their French tax exposure and reporting obligations.
New Requirements for Transfers of Real Estate-Rich Companies
From 27 June 2026, transfers of shares in companies whose assets consist principally of French real estate (“sociétés à prépondérance immobilière”) must be registered through a notarial deed, a deed countersigned by a lawyer, or, where authorised by law, an instrument drafted by a chartered accountant. Failure to respect this new requirement will void the transfer. The objective of this measure is to involve professionals subject to anti-money laundering obligations. The new rules apply broadly to entities meeting the French definition of “sociétés à prépondérance immobilière”, regardless of their legal form or nationality.
Changes to the 3% Real Estate Tax Reporting
Many non-French companies, trusts, foundations and other structures holding French real estate may benefit from 3% tax exemptions. Previously, foreign entities could secure the exemption through a one-off undertaking to provide the identity of the entity’s ultimate beneficial owners upon the French tax authorities’ request. Nevertheless, missing the response deadline automatically triggered the 3% tax charge. This mechanism is now abolished. Going forward, all entities will have to rely on the reporting-based exemption and must submit an annual declaration (Form 2746-SD) providing information on the French property, its market value and ultimate beneficial ownership, before 15 May.
The first annual declarations under the new regime will be due by 15 May 2027 and will require the entities to register online (”Espace Professionnel”) and apply for a unique French business registration number known as SIRET. We remind our readers that in the case of indirect French property ownership through a chain of entities, each entity must file the 3% tax form to claim the exemption of the 3% tax potentially applicable to each respective percentage ownership.
In addition, foreign entities with no permanent establishment in France must appoint a representative in France to receive all correspondence and notifications from the French tax authority in relation to the 3% tax. These measures are designed to improve the French administration’s ability to verify the ownership of French real estate held through offshore structures.
Owners of French property through offshore and non-French companies, partnerships, foundations or trusts should therefore carefully review their compliance procedures, since the failure to satisfy the revised reporting obligations will trigger the loss of the 3% tax exemption.
Trusts & French Inheritance Tax – Enhanced Trustee Obligations
The legislation introduces a new obligation for trustees of French-connected trusts where the specific 45% or 60% inheritance tax charges apply. Generally, these are due when assets remain in trust to be held on a discretionary basis following the death of a settlor. This French tax charge may also apply upon the death of beneficiaries if the original settlors have previously passed away, since in this context, they are treated as “deemed settlors” for French tax purposes.
The 45% or 60% charges apply to trust assets which are not included in an estate and therefore not stated in a declaration of succession.
In this instance, the trustee is responsible for the payment of the 45% or 60% charge and the death is notified through the event trust report (Form 2181 TRUST 1) due within one month of the death.
On the contrary if the trust assets are included on the deceased’s taxable estate, they would be reportable on the declaration of succession to be filed with the payment of any applicable mainstream French IHT liability. The reporting deadline is within six months of the death if the relevant party died in France or one year, if not.
Article 84 of France’s new Anti-Fraud Law introduces a specific tax declaration which the trustee must file to accompany the payment of the 45% or 60% charge. It will state the identity of the deceased party, the beneficiaries and the information required to determine the taxable base and liability. In the absence of reporting or payment by the trustee, and where the trust is established in a blacklisted jurisdiction or one that does not have an agreement with France to assist in tax recoveries, the beneficiaries are jointly & severally liable to the tax and jointly responsible for the filing of the specific trust IHT return.
The measure which applies from 27 June 2026, sits alongside the existing French trust reporting regime, including the Forms 2181-TRUST 1 and 2181-TRUST 2 reporting obligations that already apply to French-connected trusts.
In addition, the 80% penalty which up until 26 June 2026 could apply to unreported real estate assets held in trust, in the context of French wealth tax and annual trust reporting omissions, is now extended to all types of assets held in trust. For resident parties this applies to worldwide assets and for non-residents it only concerns French situs assets.
Reinforced Anti-Fraud Administrative Powers and Sanctions
The Anti-Fraud Law also contains an array of measures designed to facilitate enquiries and audits as well as increased penalties for certain infractions such as:
Should you have any queries in relation to your French tax affairs please email French.tax@bdo.gg
This publication has been carefully prepared, but it has been written in general terms and should be seen as containing broad statements only. It cannot be relied upon to cover specific situations without obtaining professional advice. BDO is the brand name of the BDO network and for each of the BDO member firms.
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