French Inheritance Tax

Inheritance tax in France

As Inheritance Tax is the subject of the week it is a good time for potential buyers of property in France to look into this matter. Since August 2015 new European legislation has meant that EU citizens are free to choose whether the law applicable to inheritance in their country of nationality or the country in which they reside will be applicable. However, there is, as yet no clear understanding what the future would be if the UK leaves the EU. So it is a good time to look at French Inheritance tax.

Inheritance tax in France is not calculated on the total assets left but on the individual sums received by each beneficiary. The amount each beneficiary can receive, free of inheritance tax, depends on their relationship to the dead person and ranges from 100,000 euro for each child to 1,594 euro for unrelated people. Once this threshold is exceeded inheritance tax is payable ranging from 15% on taxable amounts of 12,109 euro to 40% on taxable amounts over 902,838 euro.

So I am hoping that you can see that the computation of French Inheritance Tax is convoluted and confusing. It is good to accept your own mortality, even while buying a home in France, and to take advice on the taxation situation which will follow your death.