France

France's abolition of the One-Off Fiscal Representation (OFR) mechanism for Regime 42 customs imports, effective 1 January 2026, requires non-European Union businesses to either register for French value-added tax directly or appoint a formally recognised Import Agent under Article 289 A bis of the French General Tax Code. The reform materially increases the compliance burden and establishment requirements for non-EU operators using France as an EU distribution gateway.

Customs Support Group / Simarco · 2026-05-22

France's Finance Act 2026 introduced a €2-per-item import tax on low-value parcels, adding a new cost layer for e-commerce and small-parcel trade flows into the French market. The measure forms part of a broader fiscal package that also operationalises OECD/G20 Pillar Two global minimum tax rules and expands DAC7 and DAC9 cross-border reporting obligations for digital platforms and fund intermediaries.

Global Law Experts · 2026-05-22

France faces a statutory deadline of 7 June 2026 to transpose EU Directive 2023/970 on pay transparency into domestic law, with a draft transposition text expected imminently. The Autorité de Régulation des Communications Électroniques et des Postes (ARCEP) has also updated the French National Numbering Plan effective 1 January 2026, introducing stricter caller-ID authentication rules and new obligations on operators managing the 2G/3G network phase-down affecting 5.6 million SIM cards.

L&E Global / Bird & Bird · 2026-05-22

The European Commission's Spring 2026 Economic Forecast projects French real GDP growth at 0.8% for 2026, unchanged from 2025, with net exports contributing 0.2 percentage points driven by aeronautics and defence. Inflation is forecast to peak at 2.9% in Q3 2026 before declining, with the energy shock from Middle East conflict identified as the primary upside risk to the price level.

European Commission – Economic Forecast for France · 2026-05-21

The general government deficit is projected to remain at 5.1% of GDP in 2026, with public debt on a trajectory toward 118.1% of GDP in 2026 and exceeding 120% by 2027, driven by high primary deficits and rising interest payments. The French Treasury's debt servicing costs are expected to reach €59.3 billion in 2026, up sharply from €36.2 billion in 2020, compressing fiscal space.

European Commission / Euronews · 2026-05-21

France adopted its 2026 budget in February 2026 after two failed no-confidence votes, with the Lecornu government targeting a deficit reduction to 5.0% of GDP from 5.4% in 2025; the French fiscal watchdog has flagged risks of under-delivery on both spending and revenue measures. Fitch has cited political fragmentation, a weak fiscal record, and an uncertain consolidation path as factors constraining France's sovereign credit profile.

Al Jazeera / MNI Markets · 2026-05-22

France's Finance Act 2026 extended the exceptional corporate surtax for large enterprises into fiscal year 2026 with recalibrated turnover thresholds, with the effective corporate income tax rate for large acquirers expected to land between 27.5% and 30.5% depending on the turnover bracket. Social security contributions on investment income also increased to 18.6% from 1 January 2026, raising the total effective levy on qualifying investment income from 30% to 31.4% for residents without an EU S1 certificate.

Global Law Experts · 2026-05-22

The continuing minority government under Prime Minister Sébastien Lecornu, which does not hold a parliamentary majority, creates legislative uncertainty for international companies operating in France, with the L&E Global advisory noting that firms should monitor regulatory developments on an ongoing basis. Political fragmentation has already been identified by credit analysts as suppressing business investment, with the Banque de France estimating that uncertainty has reduced aggregate business investment by approximately 0.9 percentage points.

L&E Global / Banque de France · 2026-05-22

France's foreign investment screening regime, administered by the Direction Générale du Trésor, remains mandatory for acquisitions in sensitive sectors including critical raw materials, energy infrastructure, transportation networks, and dual-use technology research and development. In 2024, 182 authorisations were granted under the regime, significantly exceeding the 49 written pre-clearance requests, indicating that direct authorisation filing remains the operationally preferred pathway for foreign investors.

ICLG / Lloyds Bank Trade Portal · 2026-05-22