DIRECT OWNERSHIP
French inheritance tax generally applies to non-resident taxpayers who directly own French real estate, and in principle also to assets held through companies (whether French or foreign).
In the event of death, the tax burden can be significant, but it depends on the family relationship between the deceased and the heirs. For example, the surviving spouse is fully exempt from inheritance tax, while children benefit from a €100,000 allowance when calculating the taxable base. The tax is then computed according to the applicable tax scale.
In such cases, the taxable base is calculated on the difference between the property value (market value) and any outstanding loan balance, which often significantly reduces the taxable amount and may even result in full exemption.
IMPORTANT NOTICE
Please note that depending on the existence of a tax treaty between France and your country of residence, if you are a non-resident, inheritance tax rules and taxation may be impacted. A tax treaty can significantly modify the information above.
INHERITANCE / GIFT TAX RATES (DIRECT LINE – CHILDREN)
Taxable base after allowance (€100,000 per child):
| Taxable amount | 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% |
| Above €1,805,677 | 45% |
INDIRECT OWNERSHIP
If the property is held through an SCI or a family SARL, the transfer is made through the shares of the company. However, the tax regime remains broadly similar to that of direct ownership.