Is it possible to transfer property share of French home?

Reader Question: I am domiciled in Australia. I own a third share of a property in France and want to transfer ownership to my niece, also domiciled in Australia. To avoid gift tax, I propose she buy my share. Is there a minimum price for the sale?

You are correct that French gift tax would be due if you were simply to give your niece the share in your property, and this is at a high rate, namely 55% of the value of the gift, after an allowance of €7,967.

Sometimes in the case of cross-border tax matters, a double tax treaty has to be consulted for any special exemptions which may exist, however there is no gift tax treaty between France and Australia.

Read more: Is gift tax due if daughter buys a car for father in France?

There is no ‘minimum price’ as such, but the sale price must be realistic with regard to market value, otherwise it could be seen as a disguised gift.

There are various ways to estimate the market price, one being using the ‘Patrim’ tool, which you can access via your personal space on the French tax site. 

Another useful official tool is the government map of recent sale prices, and the notaires also have data available here.

If you were to give your niece your share, it is possible, if you wanted, for you to pay the gift tax, and this is not in itself seen as a further taxable gift.

Read more: Consider the tax implications of making a gift in France