How inheritance tax works in France
France taxes inheritances and lifetime gifts at the beneficiary level. The rate and allowance depend on the family relationship, the taxable share received and whether special reliefs apply. Surviving spouses and PACS partners are generally exempt from inheritance tax.
If the deceased or donor is a French tax resident, worldwide assets can fall into French succession or gift tax. If neither side is resident, French-situs assets such as French real estate can still be taxed. A French-resident beneficiary who has lived in France for at least six of the last ten years can also bring foreign assets into scope in some cases.
Direct-line heirs such as children usually receive a EUR 100,000 personal allowance, then pay progressive rates from 5% to 45%. Brothers and sisters, nephews and nieces and unrelated beneficiaries face higher rates and much smaller allowances.
Inheritance tax brackets in France
| Bracket | Rate | Notes |
|---|---|---|
| Direct line up to EUR 8,072 | 5% | After personal allowance |
| EUR 8,073 to EUR 12,109 | 10% | |
| EUR 12,110 to EUR 15,932 | 15% | |
| EUR 15,933 to EUR 552,324 | 20% | |
| EUR 552,325 to EUR 902,838 | 30% | |
| EUR 902,839 to EUR 1,805,677 | 40% | |
| Above EUR 1,805,677 | 45% |
Tax rates at a glance
- Spouse / PACS partner
- ExemptCommon case
- Children / parents
- 5% - 45%
- Child allowance
- EUR 100,000
- Siblings
- 35% / 45%
- Distant relatives / unrelated
- 55% / 60%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FamiliesExpatsInvestorsProperty ownersFamily offices
Watch out for
- France can tax more than local real estate when residence tests are met. Cross-border estates often need both French rules and any inheritance treaty reviewed together.
- Gift allowances can refresh over time, commonly on a rolling multi-year cycle for many direct-line gifts, so lifetime planning and death planning interact.
- Unrelated beneficiaries and more distant relatives can face 55% or 60% rates after only small allowances, which is why relationship and ownership structure matter early.
- Notarial process, forced-heirship concepts and valuation rules can affect the practical result as much as the headline percentage.
Frequently asked questions
Does France have inheritance tax?
Yes. France levies inheritance and gift tax with rates and allowances that depend on the relationship between the parties and the taxable share received.
Do spouses pay inheritance tax in France?
Surviving spouses and PACS partners are generally exempt from French inheritance tax.
What is the inheritance tax allowance for children in France?
Children commonly benefit from a EUR 100,000 personal allowance per parent before progressive rates of 5% to 45% apply to the remaining share.