Acknowledgment of debt in France 2026: drafting, tax treatment, limitation and enforcement

A debt acknowledgment (reconnaissance de dette) may look simple to draft — a few lines, an amount, a signature. In practice, it is a legal instrument whose evidentiary validity and tax compliance depend on precise details. An incomplete document provides short-term reassurance but little protection if the debtor fails to repay or disputes the terms.

This guide covers every dimension of the debt acknowledgment in France in 2026: form and mandatory content, differences between private individuals and business parties, tax treatment of interest, the mandatory loan declaration threshold, limitation periods, and enforcement procedures in the event of non-payment.

See also: debt collection and recovery, better-fortune clause in restructuring agreements, tax and social compliance questions.

A debt acknowledgment is the written instrument by which a debtor recognises owing a determined sum to a creditor. It is grounded in article 1376 of the French Civil Code (Code civil), as reformed by the ordinance of 10 February 2016 on the law of obligations: "Whoever acknowledges being the debtor of a sum of money or a quantity of fungible things must write it entirely in words and in figures."

It is not a loan contract in the strict sense — it is a unilateral recognition of an obligation. It can accompany a loan, record a commercial debt, or formalise a commitment between shareholders.

A debt acknowledgment can take two forms.

A private deed (acte sous seing prive), drafted between the parties without a notary, is the most common form. It is legally valid, but in the event of a dispute, the creditor must obtain a court judgment before enforcement can proceed.

A notarised instrument (acte authentique) has the force of an enforceable title: if the debtor defaults, the creditor can proceed directly to seizure and enforcement without preliminary court proceedings. This form is particularly recommended for significant amounts or where the parties have limited mutual trust.

For a debt acknowledgment to be valid and enforceable, it must include:

• ▸Full identity of the parties: surname, first name, address, date of birth for individuals; company name, SIREN number, registered office and capacity of the signatory for legal entities;
• ▸The amount in figures AND in words: this is the central requirement of article 1376. In the event of a discrepancy between the two, the amount written in words prevails;
• ▸The nature of the debt: it is advisable to specify the origin of the debt (loan made on a given date, purchase of goods or services, etc.);
• ▸The date of the instrument: and, if different, the date on which the debt was incurred;
• ▸Repayment terms: a single repayment date, an instalment schedule, or a defined condition triggering repayment;
• ▸The debtor's signature (and by good practice, the creditor's as well).

Before the 2016 reform, French law required that the amount written in words be entirely handwritten by the debtor. This formal requirement was relaxed. Since the reform, the handwritten mention is no longer required for validity in all debt acknowledgments — but it remains strongly advisable.

Important exception: for guarantee instruments (cautionnement), article 2297 of the Civil Code maintains a handwritten mention requirement for the guaranteed amount.

In practice, writing the amount in words and the signature by hand remains the best protection against a subsequent challenge to the authenticity of the document.

Between private individuals, a debt acknowledgment is a civil instrument. Interest must be expressly stipulated (it does not accrue automatically). The limitation period is 5 years from the date the repayment becomes due (article 2224 of the Civil Code).

Between business parties, a debt acknowledgment often arises in a commercial context. The limitation period is shorter: 2 years for commercial debts between merchants (article L 110-4 of the Commercial Code). Default interest may accrue automatically under commercial trade practices.

Between shareholders or within a corporate group, a debt acknowledgment often overlaps with the shareholder current account (compte courant d'associe). See the specific comparison below.

Is the acknowledged sum taxable income for the creditor?

The sum recorded in a debt acknowledgment is not taxable income for the creditor at the time of signing — it is the repayment of an amount the creditor has advanced. However, interest received is taxable as investment income (revenus de capitaux mobiliers) and must be declared by the creditor in their annual income tax return.

Mandatory declaration of loans above 5,000 euros

Since the Finance Act of 2012, any loan between private individuals (or between an individual and a company) exceeding 5,000 euros must be declared to the French tax authority using Form 2062 (Declaration des contrats de pret), to be attached to the income tax return for the year in which the loan was made.

Failure to declare may create difficulties during a tax audit, particularly if the administration recharacterises the loan as a gift (donation).

Interest on a debt acknowledgment

If the parties agree on interest, it must be expressly stipulated in the instrument. The applicable rate is freely determined by the parties, but it cannot be manifestly usurious.

In the absence of a stipulated rate, if interest is nonetheless claimable (for example, following a formal notice to pay), the legal rate applies. In 2025, the legal rate was 5.07% for professional debts (updated annually by decree).

Recharacterisation risk as a gift: if a loan is made interest-free or at a rate manifestly below market between related parties (parent/child, between shareholders), the administration may treat the difference in rate as a taxable gift. For loans between shareholders, the minimum acceptable rate is generally the comparable market rate.

In French companies (SARL, SAS), an advance from a shareholder to the company typically takes the form of a shareholder current account (compte courant d'associe). This is a balance-sheet entry governed by specific rules — it can be blocked by shareholders' resolution, and the interest paid is tax-deductible for the company up to certain limits.

A debt acknowledgment is an autonomous bilateral instrument, usable in any lending context — between individuals, between an individual and a company, or between two companies. It is not subject to the specific rules of the shareholder current account, but does not benefit from its automatic tax advantages either.

When to use a debt acknowledgment rather than a shareholder current account:

• ▸when the lender is not a shareholder of the borrowing company;
• ▸when the debt does not involve a company (loan between individuals, loan to finance a personal project);
• ▸when the parties want a formal, autonomous instrument independent of the company's accounts.

Hayot Expertise advice: a debt acknowledgment between shareholders and a shareholder current account are not interchangeable without precautions. The choice of instrument has accounting, tax and governance consequences. Before signing, make sure the legal form chosen corresponds to the economic substance of the transaction — an accountant or legal adviser can help you make the right choice.

The limitation period is the deadline beyond which the creditor can no longer bring court proceedings to obtain repayment.

• ▸Civil debts between private individuals: 5 years from the date repayment becomes due (article 2224 of the Civil Code). If the instrument does not specify a repayment date, the limitation period runs from the date of the formal demand for repayment.
• ▸Commercial debts between business parties: 2 years from the due date (article L 110-4 of the Commercial Code).
• ▸Debt confirmed by a court judgment: 10 years from the judgment (article 3-1 of the Act of 9 July 1991).

The limitation period can be interrupted by a formal notice to pay (mise en demeure), by recognition of the debt by the debtor (even verbal if proved), or by the commencement of court proceedings.

If the debtor fails to repay at maturity, the creditor has several options, in ascending order of formality.

1. Formal notice by registered letter (mise en demeure): the mandatory first step before any court procedure. It interrupts the limitation period and documents the refusal to pay.

2. Payment order procedure (injonction de payer, article R 1411-1 of the Code of Civil Procedure): a fast and low-cost procedure before the civil court (tribunal judiciaire). The judge can issue a payment order if the debt is certain, liquidated and due. If the debtor does not object within one month, the order becomes enforceable.

3. Full court proceedings before the civil or commercial court: if the debtor contests the claim. The debt acknowledgment then becomes the central item of evidence — hence the importance of its precise drafting.

If the debt acknowledgment was executed as a notarised instrument, the creditor can proceed directly to interim measures or seizure without going through steps 2 and 3.

In 2026, a useful debt acknowledgment is not merely a signed piece of paper — it is a precise, fiscally compliant and evidentially complete instrument. Its value lies not in its existence but in what it actually says: who owes what, to whom, from when, on what terms, and by what deadline.

Take the time to draft it correctly. If you have doubts about the form, the tax treatment of interest, or the choice between a debt acknowledgment and a shareholder current account, seek professional advice.

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What mandatory clauses must a debt acknowledgment include?

Full identity of the parties, the amount in figures and in words (article 1376 of the Civil Code), the date of the instrument, the debtor's signature, and the repayment terms. A notarised instrument has the force of an enforceable title; a private deed requires a court judgment in the event of a dispute.

Does a debt acknowledgment need to be declared to the French tax authority?

Yes, if the loan exceeds 5,000 euros: mandatory declaration using Form 2062, attached to the income tax return for the year the loan was made. Interest received by the creditor is taxable as investment income and must be declared annually.

What is the difference between a debt acknowledgment and a shareholder current account?

A shareholder current account is an advance from a shareholder to their company, recorded on the balance sheet and governed by specific company law rules. A debt acknowledgment is an autonomous bilateral instrument, usable between private individuals or in any lending context, independent of the company's accounts.

How long does a creditor have to act on an unpaid debt acknowledgment?

The limitation period is 5 years for civil debts between private individuals (article 2224 of the Civil Code), from the date repayment becomes due. For commercial debts between business parties, the period is 2 years (article L 110-4 of the Commercial Code). The limitation period can be interrupted by a formal notice to pay.