Exemption for Capital Gains on Business Transfers
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Several capital gains tax exemption or deferral schemes exist for SMEs in France, notably Article 238 quindecies of the French General Tax Code (CGI), which concerns business transfers valued at less than €500,000 (full exemption) and €1,000,000 (partial exemption).
These schemes apply to sales for consideration and transfers free of charge, as well as mergers, spin-offs, or partial asset transfers. The exemption does not apply to capital gains on real estate or shares in a company whose assets consist primarily of real estate.
Similar schemes exist for very small businesses (TPEs) and retirements, as well as for contributions to companies. To benefit from the exemption, the company must be of a commercial, industrial, craft, professional or agricultural nature, and the transferor can be a sole proprietorship, a partnership, a non-profit organization, a local authority or a public establishment, or even a company subject to corporate income tax under certain conditions.