The loss of a loved one is a painful ordeal that is often compounded by the complexity of administrative and tax procedures. In France, the transfer of an estate is subject to inheritance tax, a tax calculated on the share of the inheritance received by each beneficiary. To prevent taxation from heavily burdening the transferred assets, the legislator has provided a mechanism of allowances and a progressive scale that vary according to the family relationship between the deceased and their heirs. Understanding these complex rules is essential for planning your estate, protecting your loved ones, and optimizing the transfer of your assets in full compliance with the law.
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French inheritance law is based on the principle of family solidarity and progressive taxation. The Code général des impôts (CGI / French General Tax Code) governs all rules relating to the taxation of transfers upon death.
Before applying any allowance or tax scale, it is necessary to determine the taxable base, known as the net taxable estate (actif net taxable).
In accordance with *Article 761 of the Code général des impôts, the assets of the deceased (real estate, bank accounts, works of art, vehicles) are valued at their market value on the day of death. From this sum (the gross estate), the debts of the deceased existing on the day of death (funeral expenses up to a limit of €1,500*, taxes due, outstanding loans) are deducted, provided they can be justified.
French civil law (specifically *Article 912 of the Code civil / French Civil Code) protects certain close heirs, known as forced heirs (héritiers réservataires—descendants, or in their absence, the surviving spouse). A minimum share of the estate, the statutory reserve (réserve héréditaire), must legally be allocated to them. The remainder, called the disposable portion (quotité disponible*), can be freely bequeathed by will to third parties or other family members.
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An allowance (abattement) is a flat-rate reduction applied to a beneficiary's share of the inheritance before the tax is calculated. The closer the family relationship to the deceased, the higher the allowance. These amounts are set by *Article 779 of the Code général des impôts***.
Since the 2007 TEPA law, codified in Article 796-0 bis of the CGI, the surviving married spouse or the partner bound by a PACS (French civil union—subject, for the latter, to the existence of a will) is totally exempt from inheritance tax. They have no tax to pay on their share of the inheritance, regardless of the amount.
For children (whether legitimate, natural, or fully adopted through adoption plénière) as well as for the parents of the deceased, the individual allowance is €100,000 per share.
Note: This allowance resets every 15 years in the event of prior lifetime gifts.
Brothers and sisters benefit from an allowance of €15,932.
However, Article 789 of the CGI provides for a total exemption for a brother or sister who is single, widowed, divorced, or legally separated, provided that:
For transfers to nephews and nieces, the allowance is set at €7,967. If the nephew or niece enters the succession by representation (représentation) of their deceased parent, they can, under certain conditions, share the €100,000 direct-line allowance.
Article 779 II of the CGI provides for a specific allowance of €159,325 for any person unable to work under normal productivity conditions due to a physical or mental disability, whether congenital or acquired. This allowance can be combined with the personal allowance linked to the family relationship (for example, a disabled child benefits from a combined allowance of €259,325).
For relatives beyond the 4th degree or unrelated individuals (non-PACSed cohabiting partners, friends, neighbors), the allowance is minimal: it amounts to only €1,594.
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Once the allowance is deducted from the inheritance share, the balance (the taxable share) is subject to a tax scale. This scale is progressive for the direct line and siblings, but becomes a flat (proportional) rate for distant relatives and third parties.
| Taxable share after allowance | Applicable rate (Tax rate) |
| :--- | :--- |
| Not exceeding €8,072 | 5% |
| Between €8,072 and €12,109 | 10% |
| Between €12,109 and €15,932 | 15% |
| Between €15,932 and €552,324 | 20% |
| Between €552,324 and €902,838 | 30% |
| Between €902,838 and €1,805,677 | 40% |
| Above €1,805,677 | 45% |
| Taxable share after allowance | Applicable rate (Tax rate) |
| :--- | :--- |
| Not exceeding €24,430 | 35% |
| Above €24,430 | 45% |
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Situation: Jeanne passes away, leaving her son, Thomas, as her sole heir. Jeanne's net taxable estate is valued at €250,000.
Thomas benefits from the direct-line allowance of €100,000.
Thomas's taxable share is: €250,000 - €100,000 = €150,000.
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Situation: Marc passes away and bequeaths by will an apartment valued at €180,000 to his cohabiting partner, Sophie.
Being neither married nor in a PACS, Sophie is considered a third party for tax purposes. She benefits from the allowance of €1,594.
Sophie's taxable share is: €180,000 - €1,594 = €178,406.
The rate applicable to third parties is flat and amounts to 60%.
Inheritance tax: €178,406 x 60% = €107,043.60.
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Upon a death, the settlement of the estate and the payment of associated taxes must follow a precise legal path.
1. Opening the file with a notary: Although not mandatory in rare cases (absence of real estate, no will, and no prior gifts), hiring a notaire (civil-law notary) is indispensable in the vast majority of successions to draw up the acte de notoriété (deed of partition/notarial act listing the heirs).
2. The inventory of the estate: The notary lists all assets (accounts, real estate, furniture) and liabilities (debts) of the deceased on the day of death to calculate the net taxable estate.
3. Drafting the inheritance tax return: This is the tax form (déclaration de succession—Forms 2705 and following) which summarizes the composition of the estate, the allowances applied, and the calculation of the taxes due.
4. Filing the return and payment: The return must be filed with the registration service of the public public finances center (centre des finances publiques) of the deceased's domicile, accompanied by the payment of the inheritance tax.
5. Requesting payment facilities (optional): In case of cash flow difficulties, heirs can request deferred or installment payments of the tax, subject to providing guarantees and paying interest to the tax authorities.
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Strict deadlines are a crucial aspect of inheritance taxation in France.
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Outside of marriage, PACS, or a direct family link, taxation is very heavy. After a small allowance of €1,594, the share received by a third party (friend, cohabiting partner) is taxed at a flat rate of 60%. It is therefore crucial to anticipate these situations through life insurance policies or property split-ownership (démembrement de propriété) strategies.
If the deceased resided abroad, the rules of Article 750 ter of the CGI apply. If the heir resides in France and has been domiciled there for at least 6 years during the last 10 years, all movable and immovable property located in France or abroad that they receive is subject to inheritance tax in France. However, international tax treaties may exist to avoid double taxation.
Yes. If the heirs do not have the necessary liquidity in their personal accounts, they can ask the notary to use the money available in the deceased's bank accounts to pay the tax authorities. If the estate contains only real estate, the heirs can request installment payments (up to 3 years, or even 10 years if the real estate represents more than half of the assets) or proceed with the sale of a property.
The €100,000 allowance applies per child and per parent. Thus, a child can receive €100,000 from their father and €100,000 from their mother completely free of tax, whether through a lifetime gift (every 15 years) or at the time of death.
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Legal information for guidance only, not personalised legal advice. For your specific situation, ask your question free of charge on AvocatAI — answers based on French law, in your language.