Social Security Financing Act for 2026
The Social Security Financing Act for 2026, finally adopted at the end of 2025, provides for an increase in the rate of the French contribution sociale généralisée (CSG) from 9.2% to 10.6%, bringing total social levies to 18.6% for certain types of income.
The measure mainly concerns investment income, such as dividends and interest, as well as certain investment gains.
By contrast, the legislation maintains the current rate for several categories of income, including rental income, real estate gains and life-insurance products. This creates a sharper distinction according to the nature of the income and the investment vehicle.
By way of illustration, income subject to the French flat tax, such as dividends, will now be subject to an overall tax rate of 31.4% instead of 30%.
This increase, separate from the 2026 Finance Bill still under discussion, makes the social levy regime more complex, with different rates depending on the origin of capital income.
For taxpayers with significant financial income, the measure may therefore affect the net return on the investments concerned.
The classification of income received and the choice of ownership vehicles are consequently becoming more important.
The firm remains available to assess the consequences of this change in light of each client’s wealth situation.