David Lisnard, mayor of Cannes and a candidate for the French presidency, has proposed a fundamental overhaul of the nation’s taxation system, advocating for the unification of tax regimes for real estate and financial assets. The reform initiative, promoted by his movement Nouvelle Énergie, seeks to create a "simplified, harmonized, stable, and more legible" tax system for French citizens.
Lisnard’s proposal centers on merging the current disparate tax treatments for income derived from property holdings and those from financial investments under a single, proportional framework. This move is intended to address what he describes as an overly complex and heavily burdened system that currently imposes high rates on wealth and the transfer of assets.
In a statement released by Nouvelle Énergie, the movement criticized the current French fiscal environment, noting its distinction between income streams. The group argues that while recent reforms under the Emmanuel Macron administration have eased financial taxation, the burden of wealth taxation has disproportionately fallen onto the real estate sector. Lisnard’s platform sets its policy against this background, positing that his goal is to move past the perceived opposition between these two areas of wealth accumulation.
Why Financial and Property Income Are Taxed Differently
Currently, the tax treatment of these two types of capital income differs significantly. Financial investments are typically subject to a flat tax rate, known as the PFU, which was initially set at 30% and was raised to 31.4% in 2026. Conversely, income from property—such as rental income—is governed by the progressive income tax brackets and additional social levies, which currently total a combined rate of 17.2%.
The complexity of the existing structure, according to Nouvelle Énergie, often leads to unpredictable outcomes for the taxpayer. To illustrate the potential impact of his plan, the movement provided examples of how a unified system could lower the effective tax burden.
Lisnard’s proposal suggests replacing the current split system with a universal flat tax of 25% applied to all capital income. For instance, in a scenario involving a taxpayer earning 10,000 euros in net rental income, the current imposition would reach 47.2% when factoring in the progressive income tax at the 30% bracket and the 17.2% social contributions. Under the proposed 25% flat tax, the annual liability would be reduced to 2,500 euros, representing an annual increase in purchasing power of 2,220 euros for that individual.
Impact of a Unified Rate
Further analysis of the potential economic impact demonstrates substantial savings for investors. According to data cited by the movement, a taxpayer receiving 20,000 euros in annual net property income—and currently subject to the 30% flat tax—would see their tax liability drop from 9,440 euros to 6,280 euros. This represents an annual economic gain of 3,160 euros.
The movement maintains that this harmonization is not intended to benefit all investors equally. They specify that the option to utilize the progressive income tax bracket would remain available. This provision is designed to protect low-income earners and those situated in lower tax tiers, such as those in the 11% bracket or those who are currently non-taxable, ensuring that the reform does not disadvantage the most modest households.
The reform also addresses the volatility of the real estate market, which the candidate argues has seen its taxation fluctuate frequently, frequently leading to confusion for the contributor. By establishing a single, stable rate, the objective is to boost the attractiveness of real estate investment in the French market.
