Inheritance Tax in France
In August 2015 a new rule affecting EU countries was introduced. The rule was outlined in EU Succession Regulation (EU/650/2012), known as Brussels IV. This new rule said that if you are an English or EU citizen living in France and want your country of origin’s inheritance laws to apply, you can now indicate this in a will or separate declaration. These regulations will apply provided they do not conflict with local public policy.
If you become an official French resident, all of your assets globally, with the exception of property, may be subject to French inheritance law. This is due to the fact that foreign property is usually subject to the inheritance rules of the Country where the property is located.
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French Inheritance Tax Rates
The rates of tax that are applied vary according to the relationship of the beneficiary and can be very confusing. If you are affected by French Probate and or inheritance tax speak to our team.
Spouses are exempt from inheritance tax under French law however, as the whole estate does not normally pass straight to a spouse, some French inheritance tax will almost certainly apply.
Immediate family:
Parents, children, and grandchildren will receive a Tax-free allowance of: €100,000, then pay tax on the remaining as follows:
5% tax up to €8,072
10% on €8,072–€12,109
15% on €12,109–€15,932
20% on €15,932–€552,324
30% on €552,324–€902,838
40% on €902,838–€1,805,677
45% over €1,805,677
Siblings, i.e Brothers and sisters, will receive a Tax-free allowance of: €15,932 then pay tax on the remaining as follows:
35% tax up to €24,430
45% on more than 24,430
Other relatives will receive a Tax-free allowance of: €7,967 then pay a 55% flat-rate tax
Remote relatives and other beneficiaries will receive a Tax-free allowance of: €1,594 (€159,325 if disabled)
60% flat-rate tax
If a person dies without leaving a will, then French rules of intestacy apply. This means that the estate is divided between surviving children and spouse accordingly in line with the succession rule. Contact us for help with this.