French transaction tax rises from 0.3% to 0.4%

France is increasing its transaction tax (FTT) from 0.30% to 0.40% for transactions carried out from 28/03/2025. As before, this Financial Transaction Tax (FTT) only applies to buy orders from French companies with a market capitalisation above 1 billion. In other words, for small caps, you will not pay the tax.

For which instruments?

The French FTT thus only applies to certain shares or similar instruments issued by companies established in France with a market capitalisation of at least €1 billion (measured on 1 December of the previous year). The current list of companies (as of 1 December 2024) can be found here.

Net purchases

You will only owe this FTT on net purchases.

For example:

You own 100 shares of company ‘ABC’, a French company with market capitalisation of at least EUR 1 billion. On day X, you buy 100 more shares in this company. After a nice price rise intraday (within the same day), you sell 50 shares. At the end of the day, you are thus left with 150 ‘ABC’ shares.

You pay FTT on your 50 ‘new’ shares that you have net more in your portfolio compared to the previous trading day.