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Inheritance tax in France for non-residents: Your guide

22 January 2025

Navigating inheritance tax laws in France can be complex, especially for non-residents. If you’re a UK citizen receiving inheritance from France or planning to pass on wealth to loved ones, it’s essential to understand how French inheritance tax might apply to your situation.

To help you get started, we’ve gathered some key information about French inheritance tax rules and how they may affect non-residents. However, tax laws can be complex and frequently change. While we aim to provide helpful insights, we strongly recommend consulting a qualified tax professional to ensure your decisions are well-informed and tailored to your circumstances.

What is inheritance tax?

Inheritance tax – known as IHT in the UK and sometimes called “death tax” – is a tax paid on the estate that a person inherits from someone who has passed away. An estate typically comprises property, possessions, savings, investments and pensions.

Most countries, including France, have an inheritance tax system with different rules, rates, and reliefs. 

Inheritance tax in France is called droits de succession (succession tax). The law governing it derives from the French civil code and operates a residence-based approach, meaning it applies to all French residents regardless of their nationality.

Forced heirship rules direct that a certain portion of an individual’s estate should pass to protected heirs. In France, the rules state that this is the deceased’s children or spouse, irrespective of a will. The remainder can be distributed as the recently deceased had intended.

Forced heirship rules set out the amounts to be paid as follows:1

  • If there is one child, they receive 50% of the estate.
  • If there are two children, they receive 66.6% of the estate between them.
  • If there are three or more children, they receive 75% of the estate between them.
  • If there are no children, the spouse can claim 25% of the estate.

In the UK, inheritance tax is applied to the estate of the deceased person; while in France, it’s applied to each beneficiary. They will have a personal tax-free allowance, which is determined by their relationship with you and how much they are receiving.

Who needs to pay inheritance tax on assets inherited from France?

For French residents

If you’re a tax resident in France, all your assets are subject to French inheritance tax, whether they’re located there or overseas. This means that even if a beneficiary does not reside in France, the entire estate remains subject to French inheritance tax.

You’re considered a French resident for tax purposes if any of these conditions apply:2

  • France is your main residence or home – this can be in France even if you spend more time out of the country.  
  • France is your principal place of abode – this typically means you spend more than 183 days in France in a calendar year, but it may also apply if you spend more days there than any other single country and cannot prove tax residence elsewhere.
  • Your principal activity is in France – the main business activity or economic sector in which you operate.
  • France is the ‘centre of your economic interests’ – where your most substantial assets are based, your assets are administered, your business affairs are, or where you draw a larger part of your income.

For residents outside of France

If you’re not a resident of France, tax treaties with other countries typically dictate that only French real estate is subject to French inheritance tax. 

Therefore, if you own a second home in France, it will be subject to French inheritance laws and taxes, even if you or your beneficiaries are not tax residents of France.

Under the UK-France double taxation treaty, the UK authorities will provide a tax credit or refund for taxes paid on the property. Only your French real estate will be considered when calculating the tax liability in France.3

A tax expert can confirm if you’re legally resident in France or the UK so you can plan for the inheritance taxes that apply to you and your beneficiaries.

How much inheritance is tax-free in France?

Inheritance tax rates

In the UK, a flat rate of inheritance tax is applied to estates valued over a certain amount. Under the French system, a progressive banded scale linked to the value of the estate is applied to determine the rate to be paid. Rates are also dictated by your relationship to your beneficiaries.

Current French inheritance tax rates:4

Parents, children, and grandchildrenBrothers and sistersOther relatives up to the fourth degreeRemote relatives and other beneficiaries
➞ 5% 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

➞ 35% up to €24,430

➞ 45% over €24,430












➞ 55% flat-rate tax
















➞ 60% flat-rate tax
















Inheritance tax reliefs

Beneficiaries are entitled to a personal allowance, the amount of which depends on their relationship to the deceased. Anything inherited above the personal allowance will be taxed.

Personal allowances and applicable tax rates currently stand at:4

Relationship to deceasedPersonal allowanceTax rates
Child or parent€100,0005% to 45%
Sibling€15,93235% to 45%
Nephew/niece€7,96760%

Disabled beneficiaries who meet the conditions will receive an additional reduction of €159,325.

These allowances can only be used once every 15 years. If a beneficiary has received a gift or inheritance within the 15 years preceding the current inheritance that had the allowance applied, it may not be fully applicable to the current inheritance.4

Calculating your French inheritance tax liability

Here’s an overview of the four steps needed to calculate inheritance tax liability in France:

  1. Determine the total value of the deceased’s gross assets. This includes:
  • Real estate properties
  • Bank accounts
  • Investments
  • Personal belongings – such as vehicles, jewellery, artwork
  • Business interests
  • Life insurance policies exceeding exemption thresholds
  1. Deduct any outstanding debts and liabilities from the gross assets to ascertain the net value of the estate. Liabilities may include:
  • Mortgages
  • Personal loans
  • Unpaid taxes
  • Funeral expenses
  • Other debts the deceased was contractually obligated to pay
  1. Having calculated the taxable net value of the estate, apply applicable allowances. These are deducted from the net estate value before calculating the taxable amount for each beneficiary.
  1. Having applied the allowances, the remaining estate value is divided among the beneficiaries according to their respective shares. The taxable amount for each beneficiary is then subject to inheritance tax rates, which vary depending on the relationship to the deceased and the amount inherited.

Consult with a notaire or a legal professional specialising in French estate planning to ensure accurate calculations and legal compliance.

Exemptions under French inheritance law

Some inheritance tax exemptions are available under French inheritance law.

Married couples and people in civil partnerships are exempt from inheritance tax under French law.

Siblings of the deceased are also exempt from inheritance tax if they meet each of these three conditions:

  • Single, widowed, divorced or separated at the time of death
  • Over 50 or disabled at the time of death
  • Continually residing with the deceased for the five years preceding their death.4

How to pay inheritance tax in France

Beneficiaries that inherit taxable assets are required to file a declaration of succession. The completed form must be sent to the public finance centre (service des impôts) corresponding to the deceased’s home. If they were a non-resident, the declaration should be submitted to the Non-Residents Collection Office.

The standard deadlines for beneficiaries to pay inheritance tax are: within six months of the death if it occurred in France or within twelve months if the death occurred outside France.5

If the estate comprises at least 50% non-cash assets – such as real estate, artwork or unlisted securities like stocks and bonds – you can request to defer or pay the tax in instalments over up to three years or up to ten years for business inheritance. Interest is charged on deferred payments, with the rate specified in the authorisation.5

Payments can be made in cash (up to €300), cheque, credit card or bank transfer.5 Failure to pay the inheritance tax within the stipulated timeframe can result in penalties, including interest on late payments.6

Lumon: Providing peace of mind for you and your loved ones

Receiving an overseas inheritance can feel overwhelming. At Lumon, we’re here to make transferring your funds as straightforward as possible, allowing you to focus on what matters most, whether you’re receiving or sending money abroad.

Our service is designed around your needs, offering a tailored approach and competitive exchange rates. Your dedicated currency specialist to guide you through your options and provide market insights, helping you get great value from your transfer.

  • E-wallet: This allows you to “hold” funds in the currency in which you receive the inheritance, so you can wait for the rate to improve.
  • Experienced personal account manager: This dedicated professional will help you plan a currency strategy that allows you to transact your inheritance at an optimal time.
  • Forward contracts: This allows you to lock in an exchange rate before the inheritance is released or secure the price of a foreign property sale as part of an inheritance – giving you the peace of mind of knowing what the value will be in your desired currency when the time comes to transact.
  • Lumon EU bank accounts: This facilitates the direct receipt of funds from foreign solicitors. Consequently, we can receive your foreign currency inheritance without you needing to hold a bank account in that country or currency.
  • Dedicated Lumon staff in France: They can support and streamline your international payment arrangements with solicitors, lawyers and notary offices.

FAQs about French inheritance tax

How much are inheritance taxes in France?

The rate of inheritance tax in France ranges from 5% to 60% depending on: 

  • The beneficiaries’ relationship to the deceased
  • The value of the beneficiaries’ share
  • Whether or not the beneficiary has used their personal allowance within the last 15 years

How to avoid inheritance tax in France?

If you’re a married couple or you’re in a French civil partnership (PACS), you’re exempt from paying inheritance tax in France.

Beneficiaries are entitled to a tax-free allowance, which varies depending on their relationship to the deceased. This can reduce the amount of tax they need to pay.

If you’re the owner of the estate, you can reduce the amount of tax your beneficiaries pay through gifts during your lifetime of up to €31,865 every 15 years free of tax, provided they are over 18 years old.6

Which countries have no inheritance tax?

The following European countries don’t charge inheritance tax:

  • Austria
  • Cyprus
  • Czech Republic
  • Estonia
  • Liechtenstein
  • Malta
  • Norway
  • Portugal
  • Romania
  • Slovakia
  • Sweden

Countries outside Europe that don’t charge inheritance tax include:

  • Australia
  • Canada
  • New Zealand

While these countries may not have a specific inheritance tax, other mandatory levies, such as capital gains tax, may apply to the sale of inherited assets.

Sources used: 

1 Notaires de France – French inheritance law : Order of heirs and scale of inheritance rights in France

2 Republique Francaise – Resident of France for tax purposes

3 GOV.UK – UK/France Double Taxation Convention

4 Republique Francaise – Calculating death duties

5 Republique Francaise – Payment of inheritance tax

6 Republique Francaise – French tax law

Sources last checked on date: 08/01/2025

The information provided in this material is accurate to the best of our knowledge at the time of writing 08/01/2025, but it is subject to change. The content is for informational purposes only and does not constitute tax advice. It is essential that individuals seek advice from professional services regarding tax matters. We do not accept liability for any errors or outdated information, and individuals should not rely on the information presented without consulting an expert.