The French Court of Auditors has published a report on the taxation of household wealth, proposing 16 recommendations to reform the system. The report aims to restore progressivity at the top of the wealth scale, as the current system is considered regressive for the wealthiest individuals.
The report notes that the total wealth of French households reached €16,844 billion in 2024, with 60% of this wealth held in real estate. The top 10% of households hold half of the total wealth, and the proportion of inherited wealth has increased from 33% in the 1970s to 55% in 2025. The Court of Auditors notes that the current taxation system is ineffective in redistributing wealth, due to exemptions and avoidance mechanisms that make it regressive for the wealthiest individuals.
One of the key proposals is to introduce a differential tax on personal wealth, which would exclude professional assets to preserve economic activity. The proposed tax rate is 0.5%, which is considered compatible with constitutional jurisprudence. According to the Conseil des prélèvements obligatoires (CPO), this tax is expected to generate 1.4 billion euros in revenue. The report recommends extending the tax on holdings to include somptuary assets and housing of associates, as initially proposed, which would generate an estimated €1 billion in revenue.
The Court of Auditors proposes reducing all tranches of inheritance and gift tax rates by 5 percentage points. This would be financed by broadening the tax base, including stricter conditions for the Dutreil pact (e.g., reducing the 75% abatement to 50% for future agreements, excluding luxury assets and real estate). The Court of Auditors suggests that the current system is complex and allows for significant tax avoidance.
The report recommends applying the standard inheritance tax rates beyond the 20% marginal bracket for life insurance policies (for new premiums) and evaluating PFU exemptions for life insurance and PEA.
The Court of Auditors suggests changes to the taxation of real estate. The report recommends reducing the tax rate on real estate transactions.
The Court of Auditors’ report is based on an analysis of the current taxation system and its impact on household wealth. The proposed measures are designed to simplify the system and ensure that the wealthiest individuals pay their fair share of taxes. The report estimates that the proposed measures would generate a total of €1.83 billion in net revenue, which would be borne by the highest wealth holders, with the top 10% of households holding half of the total wealth.
