France vs Netherlands taxes (2026): IFI, Box 3 and PFU

France vs Netherlands tax rates at a glance

Tax	🇫🇷 France	🇳🇱 Netherlands
Income tax	Tax-free band: EUR 11,600 Entry rate: 11% Top rate: 45% Exceptional high-income contribution: 3% / 4% Employment social charges: Material Investment flat tax (PFU): 31.4%	Bracket 1: 35.75% Bracket 2: 37.56% Bracket 3: 49.50% National insurance in bracket 1: Included 30% ruling: If eligible
Corporate tax	Standard corporate tax: 25% SME reduced rate: 15% on first EUR 42,500 Social contribution on CIT: 3.3% IP Box reduced rate: 10% QDMTT / Pillar Two: 15%	Profit up to EUR 200,000: 19% Profit above EUR 200,000: 25.8% Participation exemption: Often available Domestic dividend WHT: 15%
Capital gains tax	Securities PFU: 31.4% PFU income-tax component: 12.8% PFU social levies: 18.6% Real-estate income tax: 19% Full property IR exemption: 22 years Full property social exemption: 30 years	Box 2 lower rate: 24.5% Box 2 higher rate: 31% Box 2 threshold: EUR 68,843 Portfolio / Box 3: 36% on deemed return Business gains: Box 1 rates
Dividend tax	Resident PFU total: 31.4% PFU income tax: 12.8% PFU social levies: 18.6% Non-resident individual WHT: 12.8% Progressive election: Optional Common dividend allowance on progressive route: 40%	Domestic dividend WHT: 15% Box 2 lower rate: 24.5% Box 2 higher rate: 31% Portfolio route: Often Box 3
Wealth tax	General net wealth tax: 0% IFI threshold: EUR 1,300,000 EUR 800,001 to EUR 1,300,000: 0.50% EUR 1,300,001 to EUR 2,570,000: 0.70% EUR 2,570,001 to EUR 5,000,000: 1.00% EUR 5,000,001 to EUR 10,000,000: 1.25% Above EUR 10,000,000: 1.50%	Box 3 tax rate: 36% Box 3 tax-free allowance: About EUR 59,357 Classic all-assets wealth tax: Not used Primary residence: Generally outside Box 3
Inheritance / estate tax	Spouse / PACS partner: Exempt Children / parents: 5% - 45% Child allowance: EUR 100,000 Siblings: 35% / 45% Distant relatives / unrelated: 55% / 60%	Partners and children: 10% / 20% Grandchildren: 18% / 36% Other beneficiaries: 30% / 40% Higher-rate threshold: About EUR 158,669 Partner exemption: EUR 828,035
VAT / GST / sales tax	VAT: 20% / 10% / 5.5% / 2.1%	VAT: 21%

Who wins on each tax

Personal income taxFrance

France's national top rate is 45%; Dutch Box 1 reaches 49.50%, though French social charges and the Dutch 30% ruling can reverse a given employment file.

Corporate taxFrance

France's general rate is 25%; the Netherlands charges 19% on the first EUR 200,000 and 25.8% above.

Capital gains taxNetherlands

Dutch substantial-interest gains are Box 2 at 24.5% or 31%, often below France's 31.4% securities PFU; portfolios may instead sit in Box 3.

Wealth taxTie

France levies IFI on taxable real-estate wealth above EUR 1.3 million; the Netherlands taxes deemed investment returns in Box 3. The asset mix decides the heavier charge.

The verdict

Ordinary salary is heavy in both countries. France's scale reaches 45% plus social charges and a possible high-income contribution. Dutch Box 1 uses 35.75%, 37.56% and 49.50% in 2026. The 30% ruling can cut the taxable slice of qualifying Dutch employment income, but it remains Dutch tax.

Wealth design is the useful split. France's IFI taxes non-professional real estate above EUR 1.3 million at 0.5% to 1.5% and generally leaves ordinary financial assets out. The Netherlands has no IFI-style property fortune tax; it taxes a deemed return on many savings and investments in Box 3 at 36% above the exemption.

Choose France for a large domestic market and household-quotient payroll if your wealth is financial rather than French property. Choose the Netherlands for a staffed holding platform, and model Box 3 against IFI rather than assuming one country has no wealth tax.

How to read this comparison

France and the Netherlands are neighbouring high-tax EU systems that look similar until you ask what they tax when nothing is sold. France's IFI is a real-estate wealth tax. Households enter when net taxable non-professional real estate exceeds EUR 1.3 million, then pay 0.5% to 1.5% on the scale. Ordinary listed shares and cash are generally outside IFI. Realised securities income is another matter: from 2026 the default PFU on dividends, interest and securities gains is 31.4%, unless the household elects the progressive scale. Personal income tax is 0% to 45% after the family quotient. Corporate tax is 25%, with a 15% SME band on the first EUR 42,500. VAT is 20%. Inheritance tax can reach 60%. Exit tax can apply when residence ends.

The Netherlands does not copy IFI. Many savings and investments sit in Box 3 and are taxed on a deemed return at 36% above the exemption, including in years when the portfolio does not produce a French-style PFU event. Substantial interests of 5% or more leave Box 3 for Box 2 at 24.5% or 31%. Work income is Box 1 at 35.75%, 37.56% and 49.50% in 2026. The 30% ruling can reduce the taxable portion of qualifying inbound salary, still inside Dutch residence. Corporate tax is 19% then 25.8%. VAT is 21%. Inheritance tax is 10% to 40%.

A property-heavy household can find Dutch Box 3 gentler than French IFI, or the reverse if the assets are funds rather than a Paris apartment. A securities investor may prefer Dutch Box 2 on a company sale and still dislike Box 3 on cash. Company substance and treaty eligibility remain local: a Dutch BV used as a holding company needs people in the Netherlands; a French company serving French customers is not cheaper because a Box 3 slide exists.

Choose France when the market and household quotient matter and the fortune is not IFI-heavy. Choose the Netherlands for holding infrastructure and inbound payroll tools, and put Box 3 on the same page as IFI.

Which one fits you

🇫🇷 Choose France if you're a…

Households using France's family quotient
Investors whose wealth is listed securities rather than French real estate
Groups that need the French consumer market

🇳🇱 Choose Netherlands if you're a…

Staffed Dutch holding or financing companies
Qualifying expats using the 30% ruling
Residents whose wealth is cash and funds rather than French property

Frequently asked questions

Is France or the Netherlands better for investors?

It depends on the asset. France's 31.4% PFU is a straightforward securities tax and IFI generally ignores ordinary financial assets. Dutch Box 3 can be better or worse than actual gains, and Box 2 taxes 5%+ holdings at 24.5% or 31%.

Does the Netherlands have a wealth tax like IFI?

Not in the French real-estate sense. The Netherlands taxes a deemed return on many savings and investments in Box 3 at 36% above the exemption, which can hit financial wealth that IFI would ignore.

Which country is better for a company?

France's 25% general rate is simpler. The Netherlands can be cheaper on the first EUR 200,000 at 19% and is often stronger as a holding platform if substance is Dutch.