Madelin Contracts in France 2026: Tax Deduction Guide for Self-Employed Professionals

Enacted on 11 February 1994, France's Madelin Law (codified under Article 154 bis of the French Tax Code, Code général des impôts) gives self-employed workers — known as TNS (Travailleurs Non Salariés) — the right to deduct certain social protection insurance premiums from their taxable professional income. Unlike salaried employees who benefit from employer-funded group insurance, TNS workers historically had to fund their own health, disability, and retirement coverage entirely out of pocket with no tax relief. The Madelin law corrects this imbalance.

The Madelin regime applies to:

• Majority shareholders / managing directors of SARL and SELARL (holding more than 50% of shares, individually or with their spouse and minor children), whose remuneration is taxed under Article 62 of the French Tax Code;
• Sole traders operating under the régime réel (actual earnings basis) in trade, crafts, or non-salaried liberal professions — taxed under BIC or BNC categories;
• General partners of SNC (Société en Nom Collectif);
• Commandité partners of limited partnerships.

Who is excluded: Presidents of SAS/SASU and minority SARL managers are classified as assimilés-salariés (deemed employees) and fall under the general social security system — they cannot use Madelin contracts. Micro-entrepreneurs (auto-entrepreneurs) are also excluded since they use a flat-rate allowance rather than deducting actual expenses.

Key requirement: The TNS must be up to date with mandatory social security contributions (SSI / URSSAF).

The Madelin regime covers four categories:

1. Complementary health insurance (mutuelle santé): covers reimbursements beyond Assurance Maladie (dental, optical, hospitalisation).
2. Disability and death cover (prévoyance): daily allowances for work stoppages, permanent disability benefits, and death capital/annuity for dependants.
3. Supplementary retirement savings (retraite Madelin / PER individuel): long-term retirement savings — since the 2019 PACTE law, most new contracts are opened as PER individuels.
4. Involuntary unemployment insurance: optional cover for loss of income in case of judicial liquidation.

Health & Disability (Prévoyance + Santé)

Ceiling = 3.75% of taxable profit + 7% of PASS Hard cap: 3% of 8× PASS = €11,304

Example — taxable profit of €60,000:

• 3.75% × €60,000 = €2,250
• • 7% × €47,100 = €3,297
• Deductible: €5,547

Retirement (PER / Madelin Retraite)

Ceiling = 10% of taxable profit (capped at 8 PASS) + 15% of the slice between 1 PASS and 8 PASS Minimum floor: 10% of PASS = €4,710

Example — taxable profit of €80,000:

• 10% × €80,000 = €8,000
• • 15% × (€80,000 − €47,100) = €4,935
• Deductible: €12,935

Important: this ceiling is shared between the Madelin retirement contract and any PER contributions made in the same year.

Since the 2019 PACTE law, the PER individuel has largely superseded traditional Madelin retirement contracts. Both share the same tax deduction ceiling, but the PER offers far greater flexibility: capital withdrawal at retirement (not just annuity), early release for purchasing a primary residence or life hardship events, and free transferability between PER contracts. For new contracts in 2026, the PER is generally the better choice. Existing Madelin contracts with strong historical returns may be worth keeping — an analysis with your accountant is advised before transferring.

• Year-end review: estimate your profit in November-December and adjust contributions to maximise your deductible envelope before 31 December.
• Combine contracts: prévoyance, mutuelle santé, and PER use separate ceilings — stack them for broader coverage and a larger total deduction.
• Annual PASS update: the PASS is revised every 1 January; always recalculate ceilings with your accountant at the start of each year.
• Micro-entrepreneur alert: switching from micro to régime réel is often the trigger that makes Madelin contributions deductible for the first time.

For a personalised analysis of your Madelin strategy and integration with your overall remuneration structure, our team at Hayot Expertise is available to assist you.