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

Under article 1376 of the French Civil Code, a private deed by which one party undertakes to pay a sum is proof only if it carries the debtor's signature and the amount in words and in figures written by the debtor himself; where the two differ, the amount written in words prevails. Above 1,500 euros, a legal act must in any event be proved in writing (article 1359 of the Civil Code, the amount being set by article 1 of decree no. 80-533 of 15 July 1980). The creditor has 5 years to bring proceedings, whether the claim is civil (article 2224 of the Civil Code) or commercial (article L. 110-4 of the Commercial Code), and a formal notice to pay does not interrupt that period: only acknowledgement of the debt by the debtor, court proceedings including interim proceedings, and a protective measure or an act of enforcement do (articles 2240, 2241 and 2244 of the Civil Code). A loan whose principal exceeds 5,000 euros must be reported on form 2062, filed with the income tax return for the year of the loan (articles 242 ter, 3 of the French tax code and 49 B of annex III; the exemption threshold was raised from 760 to 5,000 euros by the order of 23 September 2020).

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 déclaration 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), in the wording in force since 1 October 2016: a private deed by which one party alone undertakes towards another to pay a sum of money or to deliver a fungible asset is proof only if it carries the signature of the person entering into that undertaking, together with the amount or quantity in words and in figures, written by that person himself. Where the two differ, the private deed is proof for the amount written in words.

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 différent, 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).

The amount in words and in figures must still be written by the debtor himself (article 1376 of the Civil Code). What changed is the wording: Act no. 2000-230 of 13 March 2000 replaced "written in his own hand" with "written by himself", a formula carried over unchanged by the 2016 ordinance. It opens the door to an electronic writing, but it does not allow the creditor or any third party to draft the mention in the debtor's place. The sanction is not nullity of the instrument: it is the loss of its evidential force, since the deed "is proof only if" it carries the debtor's signature and that mention.

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 the same as in civil matters: 5 years for commercial debts between merchants (article L. 110-4, I of the Commercial Code), subject to shorter special limitation periods. The 2-year period is the one in article L. 218-2 of the Consumer Code, which covers a business claiming against a consumer, not debts between businesses. 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 déclaration of loans above 5,000 euros#

Any loan between private individuals (or between an individual and a company) whose principal exceeds 5,000 euros must be declared to the French tax authority using Form 2062 (Déclaration des contrats de pret), to be attached to the income tax return for the year in which the loan was made. The obligation rests on article 242 ter, 3 of the French tax code and on article 49 B of annex III; the exemption below the threshold is set by article 23 L of annex IV, whose amount was raised from 760 to 5,000 euros by the order of 23 September 2020, in force since 27 September 2020. For a loan made before that date, the applicable threshold was 760 euros. Where several loans are made during the year in the name of the same debtor or the same creditor and their combined principal exceeds 5,000 euros, all of them must be reported, on schedule 2062-A.

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 agréé 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. That rate is set by a half-yearly order of the minister for the economy (article L. 313-2 of the Monetary and Financial Code) and comprises two values depending on the status of the creditor: for the second half of 2026 (order of 26 June 2026), 6.84% where the creditor is a private individual not acting for business purposes, which covers a loan between individuals, and 2.75% in all other cases. Check the rate for the current half-year before calculating interest.

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-déductible 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: 5 years from the due date (article L. 110-4, I of the Commercial Code), the same period as in civil matters. The 2-year period is the one in article L. 218-2 of the Consumer Code, reserved for a business claiming against a consumer.
• Debt confirmed by a court judgment: 10 years from the judgment (article L. 111-4 of the Code of Civil Enforcement Procedures, which took over article 3-1 of the Act of 9 July 1991, repealed on 1 June 2012), unless the action to recover the debt it records is subject to a longer limitation period.

The limitation period is interrupted only by recognition of the debt by the debtor, even verbal if proved (article 2240 of the Civil Code), by court proceedings including interim proceedings (article 2241), and by a protective measure or an act of enforcement (article 2244). A formal notice to pay (mise en demeure), even sent by registered letter with acknowledgement of receipt, does not interrupt it: it makes default interest run and prepares the procedure.

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 recommended first step before any court procedure. It does not interrupt the limitation period, but it makes default interest run and documents the refusal to pay.

2. Payment order procedure (injonction de payer, articles 1405 to 1422 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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