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French inheritance tax varies from 0% to 60%. The different rates depend on the proximity between deceased and beneficiary. The tax is personal upon each beneficiary and is not paid out of the estate before any distribution of funds is made. This means that even if two people were to inherit the same proportions of an estate from a deceased person, they may yet end up with different amounts on the basis that their personal tax-free allowance and applicable tax rates are not the same.
An example of this is where a deceased person divides his estate equally between his one child and his one step-child, in which case the former would inherit in accordance with the first table below, the step-child having the minimum tax allowance as set out below and then being subject to tax at 60%.
French Inheritance Tax
Tax rates and allowances are valid to 31 December 2011.
Please refer to our guide to French Succession law and Inheritance Tax.
Between spouses and partners having signed a CPA or a PACS
| Band of value |
Rate of tax |
| On the whole amount received |
Total exemption of inheritance tax |
Between parents and children
Tax free allowance per child: 159,325 €
| Band of value |
Rate of tax |
| Less than 8,072 € |
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 € |
35% |
| 1,805,677 € upwards |
40% |
Between siblings
Tax free allowance per beneficiary: 15,932 €
| Band of value |
Rate of tax |
| Less than 24,430 € |
35% |
| 24,430 € upwards |
45% |
Between collaterals up to fourth degree
Tax free allowance per beneficiary: 7,967 €
| Band of value |
Rate of tax |
| On the whole amount received |
55% |
Between people not listed above
Tax free allowance per beneficiary: 1,594 €
| Band of value |
Rate of tax |
| On the whole amount received |
60% |
Particular exemptions or reductions of inheritance tax may apply and specialised advice should be sought. Calculation of gift tax may differ from the figures mentioned above.
It is also important to consider the potential incidence of income tax, capital gains tax, wealth tax and local taxation, as well as the implications of any Double Tax Treaties.
We will be able to help in these areas. Please seek our specific guidance on any particular questions you may have.
Relatives above the fourth degree or other beneficiaries who are not related to the deceased by blood or marriage pay a flat rate of 60% with a tax-free allowance of 1,594€.
Ashton KCJ French property lawyers can assist in the following areas:
Email: france@ashtonkcj.co.uk
Or call today on:
0800 917 0291 from the UK
00 44 (0) 1284 727116 from outside the UK
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