What taxes will be paid on death?

Inheritance Tax. In France it is the beneficiary who pays the tax rather than the estate and the tax rates and allowances vary according to the deceased’s relationship to the heir.

There is no inheritance tax payable between spouses or couples with a “Pacte Civile de Solidarité”

Each child is entitled to a tax free allowance of €100,000 from a parent and there are large tax bands at both 20% and 30%. Therefore, for children, French inheritance tax is perfectly reasonable and for a large estate, where assets are left to children, normally the inheritance tax bill is considerably lower than in the UK. Also, France offers more opportunities for reducing tax. Inheritance Tax can be reduced or completely avoided by buying in the name of a company (SCI).

When the value of assets passes the €100,000 threshold the rate of Inheritance Tax is banded depending on the value of additional assets in France.
 

Fraction taxable	Taxe rate
Up to €8,072	5%
From €8,072 to €12,109	10%
From €12,109 to €15,932	15%
From €15,932 to €552,324	20%
From €552,324 to €902,838	30%
From €902,838 to €1,805,677	40%
Above €1,805.677	45%

 


Information correct as of 1st January 2024. This may change as rules and regulations change often, so please contact us directly if you have any specific enquiries.