French inheritance tax rules depend on the relationship of the recipient to the deceased as well as the type of asset being passed on (whether properties, money in accounts etc). We explain.
Below we give the current rules, defined by official French sources. We are unable to give full details of how they interact with foreign rules in the case of cross-border inheritances, which are complex.
Highest inheritance tax
France’s inheritance taxation is among the world's highest, with France being one of only four countries where tax on inheritance and gifts makes up more than 1% of all tax revenues (the others are South Korea, Belgium and Japan).
It brought in €16.6 billion in 2023, more than double that of 12 years before (€7 billion), making it a significant revenue stream for the government.
A report from the Cour des comptes, France’s state auditing body, published last week, recommends changes to the current set-up.
Read also: French inheritance tax: current rules and what reforms are proposed
The most recent change was in March 2024, allowing payments of the tax to be spread out over a longer period.
Read more: Extra time now possible to pay French inheritance tax in instalments
Tax on heirs’ shares
Where someone who lives in France dies (other than in very small estates with no real assets), the notaire dealing with the deceased’s estate organises:
This is also the case regarding the part of a non-resident’s estate that is located in France (this mostly applies to property, such as a second home).
French inheritance tax is taken off each heir’s share, after it is shared out. The rate of the tax differs depending on the relationship. This is unlike the UK, for example, where the estate as a whole is taxed before it is shared out.
In some other cases, a beneficiary is expected to take the initiative to make a declaration (eg. in the case of a declarable inheritance from abroad received by a French tax resident).
Note that French taxation rules are separate from inheritance law (which governs how an estate may be bequeathed).
They come into play even where a foreign inheritance law is applicable.
Which assets can be assessed for French tax?
The scope of French inheritance tax depends on:
It also varies based on where the assets are located.
Where the deceased was a French tax resident
Beneficiaries are eligible to pay tax on all assets received, whether located in France or abroad, unless an exemption applies (for example due to a clause in a double tax treaty with another country)
Where the deceased was not a French tax resident:
If the beneficiary was a French tax resident on the date of the deceased's death, and had been living in France for at least six of the previous 10 years, then the rule is that they are eligible to pay inheritance tax on assets received, whether located in France or abroad. However, rules for assets from abroad can vary if there is an inheritance tax treaty between France and the deceased’s country of residence (this is the case, for example, between France and the US or France and the UK).
Read also: Navigating inheritance tax as a Briton in France
Read also: Where do we pay house inheritance tax in France?
How is inheritance tax calculated?
All beneficiaries of a person’s estate do not necessarily pay inheritance tax, as there are large allowances in some cases. This depends on the person’s relationship with the deceased and/or the nature of the assets left.
Inheritance tax liability depends on several factors:
The taxable net assets of the deceased. All of the assets (estate and assets, minus the debts) to be divided between the heirs.
The taxable net assets per heir. The net taxable assets are divided between each heir according to their share, minus any previous substantial gifts from the deceased.
Personal allowances. These depend on the beneficiary’s relationship to the deceased and their personal situation. It is available provided the person has not used it in the 15 years preceding the death for receipt of a gift.
Percentage rates. How the tax on the beneficiary’s share is calculated.
The personal allowance thresholds are:
€100,000 for a child (not including stepchildren), father or mother
€15,932 for a brother or sister
€7,967 for a nephew or niece
€1,594 if no other allowance applies.
Severely disabled people who meet relevant conditions benefit from an additional allowance of €159,325.
How much inheritance tax do you have to pay?
The amount you pay (after application of allowances) depends on your relationship to the deceased.
Direct heirs (father, mother, child and grandchild)
Up to €8,071: 5%
€8,072 to €12,109: 10%
€12,109 to €15,932: 15%
€15,932 to €552,324: 20%
€552,324 to €902,838: 30%
€902,838 to €1,805,677: 40%
More than €1,805,677: 45%
Brothers and sisters
Less than €24,430: 35%
More than €24,430: 45%
Other relatives up to four generations from the deceased
Inheritance tax for other beneficiaries
Can I estimate my inheritance tax amount?
Yes. The simulator on the Service-Public government website can provide an estimate of the amount of inheritance tax (excluding notaire fees) that you will be liable to pay following the death of a close relative.
The calculator asks for:
The value of the assets making up the inheritance
Your share amount (see the list above)
Any debts left by the deceased.
Possible exemptions in the case of an inheritance
You may be exempt from making an inheritance tax declaration and/or paying inheritance tax, depending on your status as inheritor. (Note that in the case of receiving an inheritance from someone living in France, it is the notaire who declares the inheritance).
Spouses and Pacs partners
Child of the deceased
You do not have to file an inheritance declaration or pay inheritance tax if you meet both of these conditions:
The gross inheritance assets are less than €50,000.
If you have benefited from substantial gifts in the lifetime of the deceased and these have already been declared or registered.
Other beneficiaries
Some other exemptions from French inheritance tax
A few exceptions relate to the status of the deceased. For example, there is no tax to pay on:
Some exemptions may also apply based on the type of assets left. For example, properties that are listed historic monuments may be totally exempt under certain conditions.
Partial exemptions also exist for example on agricultural property and forests.
A partial exemption also exists, under certain conditions, for the passing on of shares in family businesses.
There are also exemptions on tax if the deceased leaves assets to a foundation or association that is recognised as being of benefit to the public, as well as other associations related to assistance and charity, or protecting animals or the environment.
The same applies to bequests to churches and other recognised religious organisations, or if the money is left to public bodies such as hospitals, museums etc.
For more about inheritance, tax and law and wills in France, see our help guide (€14.50).
