The final quarter of the year is a tax planning window that many taxpayers allow to pass without action. Yet decisions taken between October and 31 December have a direct impact on the current year’s tax liability — and often on subsequent years as well. In 2026, the context is particularly favourable for acting: the parliamentary debate on the 2027 Finance Bill (PLF 2027) is a reminder that tax rules can change, making it prudent to consolidate positions under the current framework.

Below are the five wealth planning levers we recommend reviewing or activating before 31 December 2026.

PER Contributions: Maximise Your Deduction Before Year-End

The Plan d’Epargne Retraite (PER) remains, in 2026, one of the few vehicles allowing voluntary contributions to be deducted directly from taxable income. For a taxpayer in the 41% marginal bracket, every euro contributed generates 41 cents in immediate tax savings — provided the contribution is made before 31 December.

The 2026 deduction ceiling is set at 10% of the prior year’s net professional income (2025 income), capped at €35,194 for a single taxpayer. On top of this, unused allowances from the prior three years are automatically carried forward and may be combined. In practice, if no PER contribution has been made since 2023, up to four years’ worth of allowances may potentially be deducted in a single year.

For business owners holding a Madelin contract or equivalent PER, the rules differ slightly: the deduction is calculated on taxable profit, with a higher ceiling (up to €76,102 in 2026 for self-employed taxpayers). The fiscal leverage effect is even more pronounced in this configuration.

One critical point: the contribution must be credited to the PER account before 31 December 2026 to be deductible for the current tax year. Allow for bank transfer processing times — some institutions may take 2 to 3 business days at year-end.

Capital Loss Harvesting: Neutralising Gains Before Year-End

If you have realised capital gains on securities in 2026 — including gains on ETFs, equities, bonds, or fund units — those gains are taxable at the flat rate of 30% (PFU, comprising 12.8% income tax and 17.2% social contributions), unless you elect the progressive income tax scale.

The harvesting strategy involves crystallising unrealised losses in your portfolio before 31 December — that is, selling securities at a loss to offset the gains already realised. Losses recognised in this way are first applied against gains of the year, then carried forward for up to 10 years if they exceed current-year gains.

A technical nuance often overlooked: France has no strict equivalent of the US « wash-sale rule, » but the tax authorities can recharacterise an immediate buy-back of the same security as artificial if there is no economic substance. Standard practice is to wait at least 30 days before repurchasing the same security, or to replace it with an ETF of similar sector exposure to maintain market positioning.

Illustrative example: you realised €80,000 in gains on technology stock sales in March 2026. Your portfolio also holds €60,000 in unrealised losses on bonds held since 2023. By realising those losses before 31 December, you reduce your taxable base to €20,000 — a tax saving of approximately €18,000 at the 30% PFU rate.

Tax-Advantaged Giving: IR-PME, FCPI, FIP and Charitable Donations

Several French tax schemes allow a direct reduction of income tax — not merely a deduction from taxable income — in exchange for investments or donations made before 31 December. These credits apply against the tax due for 2026, payable in September 2027.

IR-PME: subscribing to the share capital of an eligible SME entitles you to an income tax reduction of 25% of the amount invested. The ceiling is €50,000 for a single taxpayer (maximum reduction: €12,500) and €100,000 for a couple (€25,000 maximum reduction). Shares must be held for a minimum of five years. Note: this benefit is subject to the overall tax-niche cap of €10,000 (or €18,000 for certain overseas schemes).

FCPI and FIP: Innovation funds (FCPI) and local investment funds (FIP) also offer a 25% income tax reduction, capped at a reduction of €3,000 (single) or €6,000 (couple). These funds provide collective access to unlisted SMEs, with limited liquidity over 7 to 10 years. Subscriptions must be completed before 31 December to be credited against 2026 income tax.

Charitable donations: gifts to eligible general-interest organisations (associations, recognised foundations) qualify for a 66% income tax reduction on the amount donated, capped at 20% of net taxable income. For donations to organisations assisting people in difficulty, the rate rises to 75% (capped at €1,000, with the excess qualifying at 66%). These reductions are particularly effective for taxpayers who have already maximised other tax niches.

Gifts to Family Members: Allowances and the Exceptional Cash Gift

The family gift is often perceived as a complex notarial transaction reserved for large wealth transfers. In reality, it is one of the most accessible estate planning tools available — and it comes with deadlines that must be carefully observed.

Each parent may give each child €100,000 in assets fully exempt from gift and inheritance tax, every 15 years. If your last gift was made before October 2011, the full allowance has been reinstated. You may therefore give up to €100,000 per child again with no tax whatsoever. This mechanism is cumulative with the allowances for grandchildren (€31,865) and great-grandchildren (€5,310).

In addition to the general allowance, there is the exceptional family cash gift — a separate and cumulative benefit: up to €31,865 per donor per recipient (child, grandchild, or major great-grandchild), tax-free. This gift must be made in cash — bank transfer, cheque, or notes — and the donor must be under 80 years of age at the time of the gift. It too renews every 15 years.

Anticipating the PLF 2027 provides an additional argument for acting now: the Finance Bill currently under discussion includes several modifications to inheritance and gift allowances. Completing a gift under the current framework, before any potential 2027 reform, represents a window worth capturing.

Life Insurance Switches: Rebalancing Without Tax Friction

The French life insurance contract (assurance-vie) is the only domestic wealth envelope that allows you to modify the allocation of assets — switching from the euro fund to unit-linked funds, or vice versa — without triggering any tax event. An internal switch is not a withdrawal: it does not trigger the flat tax (PFU) or social contributions. Tax only arises on exit, upon a partial or full surrender.

This feature is particularly valuable at year-end, when you need to rebalance your allocation in response to market developments. In 2026, the rise in bond yields and the recovery of euro fund returns (average expected yields of 2.8% to 3.4% for the full year) create an opportunity: reduce exposure to higher-risk unit-linked funds to lock in gains, with no tax cost.

If your contract is more than eight years old, you also benefit from the annual allowance on partial surrenders: €4,600 of interest withdrawn tax-free for a single individual, €9,200 for a married or civil-partnered couple. If no partial surrender has been made this year, you can still use this allowance before 31 December — interest withdrawn within this limit is subject only to social contributions (17.2%) and not to income tax. This annual « gain purging » strategy, repeated each year, allows gains to be progressively extracted from a mature contract without income tax.

For contracts still in their growth phase (less than eight years), internal switches remain tax-neutral — fiscal patience is the envelope’s primary advantage.