Decrypting French Inheritance Tax
If you're living in France, or have assets or family there, understanding French inheritance tax (droits de succession) is essential. This guide will break it down clearly so you know what to expect and how to plan.
Who Pays Inheritance Tax in France?
In France, each heir is taxed individually, based on the value of what they inherit, and their relationship to the deceased.
Unlike some countries where the estate pays the tax, it's the beneficiary who pays in France. And the closer your relationship to the person who passed, the more favorable the tax conditions.
Tax-Free Allowances by Relationship
Before any tax is calculated, beneficiaries get a tax-free allowance (abattement). Here are the main thresholds (as of 2024):
| Relationship | Tax-Free Allowance |
| Child or Parent | €100,000 |
| Sibling | €15,932 |
| Nephew/Niece | €7,967 |
| Grandchild | €1,594 |
| Friend or Unrelated Person | €1,594 |
| Spouse or PACS Partner | Fully exempt |
So, if a child inherits €120,000 from a parent, only €20,000 is taxable.
Source: Article 779 of the French General Tax Code (Code général des impôts) https://www.legifrance.gouv.fr
Inheritance Tax Rates in France
Once the allowance is applied, the rest is taxed progressively.
Here’s how it breaks down for children and parents:
| Inherited Amount | Tax Rate | |
| Up to €8,072 | 5% | |
| €8,073 – €12,109 | 10% | |
| €12,110 – €15,932 | 15% | |
| €15,933 – €552,324 | 20% | |
| €552,325 – €902,838 | 30% | |
| €902,839 – €1,805,677 | 40% | |
| Over €1.8 million | 45% |
Other relationships have their own rates:
- Siblings: 35% up to €24,430, then 45%
- More distant relatives (e.g. cousins): 55%
- Unrelated persons: 60%
Source: French Tax Administration - impots.gouv.fr, https://www.impots.gouv.fr/particulier/droits-de-succession
Special Exemptions and Planning Tips
No Inheritance Tax for Spouses or PACS Partners
If you’re married or in a PACS (civil union), you’re in luck: no inheritance tax applies, no matter the amount. This rule has been in place since 2007 and greatly simplifies things for surviving partners.
Gifting While Alive - France allows tax-free gifts every 15 years, up to:
- €100,000 per child
- €31,865 per grandchild
- €80,724 between spouses/PACS partners
This is a great way to pass on wealth while minimizing tax later.
Source: Article 790 G of the French General Tax Code
Tax sheltered investing - Assurance vie
A government sanctioned financial product called "assurance vie" is a powerful inheritance tool in France, applicable only for fiscal residents.
For funds invested by the owner before age 70, the first €152,500 per beneficiary (upon the owner's death) is tax-free. Beyond that, the rate is usually 20% up to €700,000, and 31.25% above that.
Source: Article 990 I of the French General Tax Code
Inheritance for Non-Residents and Expats
France’s inheritance tax applies to:
- French property, no matter where you live
- Worldwide assets, if the deceased was a French tax resident
Good news: France has inheritance tax treaties with countries like the U.S. and U.K. to help avoid double taxation!
Final Tips
- Consider early estate planning with a French notaire
- Use assurance vie and gifting strategies to reduce tax exposure
- If you have international assets, talk to a cross-border tax advisor
We'll be happy to recommend a trusted and tested expert to you as needed.
