June marks the official beginning of summer – although the heatwave at the end of May gave us an early taste of the season. For French businesses, this is the final month to conclude key transactions and projects before the traditional slowdown in July and August. For French resident tax payers there are also a few matters to address before the summer really starts.
French financial update June 2026
By Katriona Murray-Platon
This article is published on: 4th June 2026
Most people will have by now submitted their tax return – those living in departments numbered over 55 have until 4th June and those who have engaged an accountant to do their tax returns will also be granted additional time to file. The tax statements will be available online from 24th to 31st July. For those receiving paper statements, these will arrive by post between 23rd July and 28th August.
The 15th June is the deadline for trustees of trusts where a trustee, settlor or beneficiary is fiscally resident in France, to complete the declaration 2181-TRUST2, declaring the value of the assets in the trust as at 1st January. The issue of trusts in France is one I’m often asked about. Are trust illegal in France? No. Trusts do not exist under French law, however French case law (jurisprudence) has long accepted that Trusts set up in other countries can have effect in France provided that they were created in accordance with the law of the country in which they were created, and that they do not contain any provisions which are contrary to French public policy (ordre public) especially as regards forced heirship (reserve héreditaire) – Paris Court of Appeal decision, 10th January 1970, Époux Courtois et autres consorts de Ganay. If you are the beneficiary, trustee or settlor of a Trust and this is the first time you have heard about the requirement to declare the trust, you need to first declare the existence of the trust using the form 2181-TRUST1 as well as the value as at 1st January.
Property owners have until 30th June to update the information on the buildings on their property and the occupants of those buildings on the impots.gouv.fr website if their situation has changed between 2nd January 2025 and 1st January 2026. If your property portfolio remains unchanged since the last declaration, no action is required. Only one declaration is necessary for a building and adjacent structures (e.g. garages, swimming pools etc) if they are occupied by the same person(s). Furthermore, as the review of rental values has been pushed back 3 years, landlords do not have to declare the amount of their rent received, unless they choose to do so.
On 26th May 2026, the Prudential Assurance Company (PAC) Board conducted its quarterly review of the Prufund Expected Growth Rates (EGR). The EGRs—which represent the forward-looking component of Prufund’s unique smoothing mechanism—remain unchanged for this quarter. Additionally, there were no Unit Price Adjustments (UPAs). The UPA is the backward-looking element of the smoothing mechanism; it is entirely formulaic, non-discretionary, and designed to protect investors from short-term market volatility.
The first half of 2026 has been defined by two dominant issues:
The geopolitical situation which has had a broad impact on financial markets, and AI – the significance of which is arguably still underappreciated by the broader market.
While the ongoing tensions in the Middle East show sporadic signs of diplomatic progress, it is still unclear whether we are any nearer a deal between Iran, Israel and the US.
After reports that a deal had been reached last week, oil prices dropped to $92 but have now risen to $96.28 the barrel on 1st June.
While we do not understate the human and political seriousness of these events, such conflicts are a regrettably familiar feature of the global landscape. Historically, long-term investors have been well-served by avoiding overreacting to short-term geopolitical shocks.
Inflation data published last week confirms that energy price pressures are increasingly filtering through to core economies. May data revealed inflation hitting 2.8% in France, 3.3% in Italy, and 3.6% in Spain. The European Central Bank (ECB) is expected to raise interest rates at its June meeting, despite visible signs of economic deceleration across the Eurozone. The composite Purchasing Managers’ Index (PMI)—a reliable metric for broader business activity—slumped to a 31-month low in May, following a contraction in the French economy during Q1 2026. Meanwhile, US forecasters now project inflation to end the year at 3.6%, marking yet another period where inflation sits stubbornly above the Federal Reserve’s 2% target.
In contrast to geopolitical events, the rise of AI represents a profound paradigm shift that will permanently alter the structure of the global economy.
The early part of 2026 saw a move away from software and information services businesses, as investors adopted a “sell first, ask questions later” approach. Time will tell as to which business models will become obsolete from the use of AI and which will see their productivity enhanced by these extraordinary breakthroughs.
Our fund managers are therefore focusing on asset allocation and portfolio construction whilst avoiding complacency.
Remaining open-minded to a changing economic landscape is key as well as allowing for flexibility in investment portfolios.
Even within a rapidly evolving global economy, the fundamental advantage of long-term investing remains entirely unchanged.
For the vast majority of portfolios, maintaining a disciplined, long-horizon stance—what could be termed deliberate “inaction”—remains the soundest strategy.
Despite the pervasive negative sentiment in the financial media, all major equity indices remain in positive territory for 2026 – a vital reminder for us all to keep focused on corporate and economic fundamentals, rather than market emotion.
The coming, more relaxed, summer weeks, are a perfect time to get in touch to arrange a free, no obligations, meeting with me to discuss your personal financial situation.