Inheritance tax in France for non-residents 2026

An overview of inheritance tax in France

Understanding inheritance tax in France can be difficult, particularly for UK nationals who are inheriting assets from France or planning to leave French-based wealth to family members. The rules differ significantly from the UK and can affect how much tax beneficiaries may need to pay.

This article outlines the key points non-residents should be aware of, including how the French system works and the factors that influence tax liability. Because tax legislation changes frequently and personal circumstances vary, professional tax advice is strongly recommended to ensure you make decisions with confidence.

When it comes to managing your finances, Lumon is here to help. We’ve helped thousands of UK clients send money overseas safely and manage exchange rates when receiving or transferring inheritance funds between France and the UK.

Understanding inheritance tax in France

Inheritance tax (IHT) is a tax, paid on the estate that a person inherits from someone who has died. An estate typically comprises property, possessions, savings, investments and pensions.

French inheritance tax ranges from 0% to 60, with the applicable rate determined by the relationship between the deceased and the beneficiary.

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 tax residents regardless of their nationality.

Forced heirship rules direct that a certain portion of a person’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 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 have a personal tax-free allowance, which is determined by their relationship with the deceased.

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

For French residents

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

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

f you are not a resident of France, tax treaties with other countries generally determine that only French real estate is subject to inheritance tax in France.

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 applies to estates valued over a certain threshold. Under the French system, inheritance tax in France is calculated using a progressive banded scale linked to the value of the estate. The rates are also influenced by your relationship to your beneficiaries.

Current French inheritance tax rates:⁴

Parents, children and grandchildren	Brothers and sisters	Other relatives up to the fourth degree	Remote 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 person. Any part of the estate that exceeds this allowance is subject to inheritance tax in France.

Personal allowances and applicable tax rates currently stand at:⁴

Relationship to deceased	Personal allowance	Tax rates
Child or parent	€100,000	5% to 45%
Sibling	€15,932	35% to 45%
Nephew/niece	€7,967	60%

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 liability for inheritance tax in France

Here is an overview of the four steps needed to calculate liability for inheritance tax 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

2. 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

3. 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.

4. 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, who specialises 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
• Living continually 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 (i.e. real estate, artwork or unlisted securities like stocks and bonds) you can request to defer or pay the tax in installments 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, with a tailored approach, competitive exchange rates and guidance that helps you navigate inheritance tax in France when your transfer involves French assets.

• Online account (e-wallet): Hold your funds in the currency in which you receive the inheritance, giving you the flexibility to convert when the timing feels right.
• Dedicated account manager: A personal specialist who gets to know your circumstances and helps you plan a currency approach that aligns with your needs.
• Forward contracts: Lock in an exchange rate ahead of time—such as before the inheritance is released or as part of a property sale connected to the estate—so you know exactly what your funds will be worth when you’re ready to move them.
• Lumon EU bank accounts: This facilitates the direct receipt of funds from foreign solicitors. Lumon can receive your foreign currency inheritance without you needing to hold a bank account in that country or currency.

FAQs about French inheritance tax

How much are inheritance taxes in France?

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 are the owner of the estate, you can reduce the amount of tax your beneficiaries may need to pay by making lifetime gifts. You can gift up to €31,865 every 15 years free of tax, provided the beneficiary is 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: 15/01/2026

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Lumon or its subsidiaries, and it is not intended as a substitute for obtaining advice from the relevant professional services. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.