Pacte Dutreil
A French tax mechanism allowing a family business to be transferred with a 75% reduction on the taxable base for gift or inheritance tax purposes. It requires collective and individual share-retention commitments totalling at least six years.
In practice
For a company valued at 4 million euros, the Dutreil reduces the taxable base to 1 million euros, potentially saving over 400,000 euros in transfer taxes depending on the rate schedule and family relationship. The collective retention agreement — minimum two years, signed by shareholders representing at least 34% of unlisted share capital — must predate the gift. Any breach of the retention obligation triggers clawback of the exempt tax plus late-payment interest.