Livret A Cap Reform: France Proposes €19,125 Ceiling and Tax on Excess Savings – What Expats Need to Know

France’s CPO suggests slashing Livret A and LDDS ceilings to €19,125 and taxing excess interest. Most savers unaffected, but expats in France should check impacts on safe savings. Full details on changes, costs, and alternatives.

France’s Conseil des Prélèvements Obligatoires (CPO), linked to the Cour des Comptes, dropped a bombshell report on the 1st December 2025, calling for major tweaks to the beloved Livret A and LDDS savings accounts. The plan? Harmonize both at €19,125 – down from Livret A’s current €22,950 and LDDS’s €12,000 – and slap taxes on interest from any excess deposits. With the Livret A’s rate at a measly 1.7% since August, this could push wealthier savers to rethink their “safe haven” strategy.

This isn’t just about trimming perks; it’s a push to refocus these accounts on precautionary savings, not tax-free wealth building for high earners. For expats in France, like British residents building emergency funds amid rising costs, the timing feels particularly sharp as 2025 fiscal debates heat up.

Limited Impact for Most French Savers – But Watch for Families

Good news for the average holder: 83% of French adults have a Livret A, but the median balance hovers around €1,500, with averages at €7,482. Only 13% max out their accounts, so “the vast majority won’t feel a thing,” per the CPO.

Typical savers: No change – full tax-free status up to €19,125 per account.
Couples/families: Current combined limits hit €34,950 per person (up to €143,550 for a family of five), far beyond precaution needs.
High rollers: Excess interest taxed at standard rates (around 30%), costing the state €5.6B in exemptions yearly but gaining €80-230M back.

Expats often use these for liquidity in euros; a cap could nudge you toward alternatives like money market funds.

Broader Wealth Tax Overhaul in the Works

The Livret A tweak is part of a sweeping CPO critique labeling France’s patrimony tax as “heavy, complex, unequal, and ineffective”. Tax breaks on wealth now outstrip revenue from taxing asset income, they argue.

Key other proposals:

Revamp life insurance tax on inheritance to curb evasion.
Broaden gift tax bases for fairer succession rules.
Target “distortions” favoring the rich in regulated savings.

These are recommendations only – no force yet. The government has already shut the door on Livret A cuts, prioritizing social housing funding from these accounts.

What This Means for Expats Living in France

For English speakers in France running blogs or YouTube channels (hello, chb44.com readers!), this stirs debate on fiscal shifts post-2025 elections. President Trump’s US reelection adds global uncertainty, making euro-safe spots vital.

Stay or switch? Keep under €19,125 for zero tax; beyond, consider assurance-vie or PEL for better yields.
Expat tip: Track Bofip updates; dual nationals face IR/wealth tax traps.
Monetization angle: Rising searches for “Livret A tax changes” spell traffic gold – link internally to your France finance guides.

Government adoption needs parliamentary vote, likely stalled amid protests.