A parent who lived abroad, an heir settled in France, an asset located in another country, a gift received from abroad: as soon as an estate or a gift involves several countries, the same question arises. Can France tax it, and under which rules?
This FAQ presents the French rules: when France taxes, which returns to file, how the duties are calculated and the scales applicable in 2026. It does not cover the rules of the other country, for which a local professional may be consulted. For more, see the pages on international estates and international gifts. Each situation deserves to be analysed, ideally with a lawyer.
In brief
- France in principle taxes all assets, located in France and abroad, where the deceased or donor was tax-domiciled in France.
- Where they lived abroad, France in principle taxes assets located in France and, if the heir or donee has been domiciled in France for at least six of the last ten years, the assets located abroad that they receive.
- Few tax treaties cover estates, and even fewer cover gifts; where a treaty applies, it may, in certain cases, allow an exemption in France, which only an analysis of the situation by a lawyer can confirm or rule out; failing an applicable treaty, tax paid abroad may, under conditions, be deducted from French duties (article 784 A of the French General Tax Code).
- The estate return is in principle filed within six months of death, or within twelve months if the death occurred abroad (form no. 2705-SD and annexes).
- Duties are in principle calculated after an allowance (€100,000 between parent and child, exemption between spouses for estates), according to a scale that depends on the family relationship.
Contents
When does France tax an international estate or gift?
Article 750 ter of the French General Tax Code distinguishes three situations, assessed on the day of death or of the gift:
| Situation | Assets taxable in France (subject to treaties) |
|---|---|
| The deceased or donor was tax-domiciled in France | All assets, located in France or abroad, wherever the heirs or donee live |
| The deceased or donor was not domiciled in France, but the heir or donee is, and has been for at least six of the previous ten years | All assets received by that heir or donee, located in France or abroad |
| Neither of these two situations | Only assets located in France |
These rules apply subject to tax treaties. France has signed rather few in respect of estates, and even fewer in respect of gifts; the table of tax treaties lists them. Where a treaty exists, it allocates the right to tax between the two States and in principle applies even if no tax has been paid abroad, unless there is a specific clause; only an analysis of its wording and of the situation by a lawyer can determine whether or not the treaty leads to a reduction or an exemption in France.
Without a treaty, double taxation may arise. Tax paid abroad on assets located outside France may then, in principle, be deducted from the duties due in France, within the limit of the French duties corresponding to those assets (article 784 A of the French General Tax Code).
Tax domicile, estate, inheritance: a few definitions
A few concepts come up often:
| Concept | Meaning |
|---|---|
| Tax domicile | Under French law, a person is in principle domiciled in France if their home or main place of stay, their main professional activity or the centre of their economic interests is there (article 4 B of the French General Tax Code); one of these criteria is enough |
| Estate (succession) | Transfer of a person’s assets on their death, from the opening of the estate until its division |
| Inheritance | All the assets passed on by the deceased |
| Gift (donation) | Transfer of assets by a person during their lifetime |
| Tax treaty | Agreement between two States allocating the right to tax; treaties on estates or gifts are separate from those covering income |
Where a person is regarded as domiciled both in France and in another State, an estate tax treaty, where one exists, may make it possible to retain only one, which needs to be checked by a lawyer, case by case; a treaty covering only income does not settle this question for estates.
Which returns for an international estate?
Where France may tax the estate, an estate return is in principle filed by the heirs within six months of death if it occurred in metropolitan France, or within twelve months in other cases, in particular where it occurred abroad. The main forms are as follows:
- no. 2705-SD: the estate return;
- no. 2705-S-SD: the detailed annex (heirs, assets, liabilities, calculation of duties);
- no. 2705-A-SD: life insurance contracts and their beneficiaries;
- no. 2740-SD: calculation of the tax paid outside France that may be set against French duties.
Accounts opened abroad that are inherited are, in addition, in principle declared every year with the income tax return, on form no. 3916-3916-bis (box 8UU). The full step-by-step guide (who files, where, when and how) is in the guide on the international estate return in France.
Depending on the law applicable to the estate and the option exercised, heirs may be liable for debts beyond the assets received. These questions fall under civil law, and an analysis by a lawyer or notary may be useful before accepting an estate.
How are inheritance duties calculated?
Duties are, as a general rule, calculated on the net share received by each heir (assets, less deductible debts), after an allowance that depends on the family relationship, then according to a scale. Gifts made by the deceased to the same beneficiary within the previous fifteen years are in principle taken into account (tax recall). The amounts below apply in 2026 and have not changed for several years.
Allowances
| Beneficiary | Estate | Gift |
|---|---|---|
| Spouse or PACS partner | In principle, full exemption | €80,724 |
| Child or parent | €100,000 | €100,000 |
| Grandchild | €1,594 (or a share of their parent’s allowance if inheriting in the parent’s place) | €31,865 |
| Great-grandchild | €1,594 (same proviso) | €5,310 |
| Brother or sister | €15,932 (full exemption under conditions) | €15,932 |
| Nephew or niece | €7,967 | €7,967 |
| Disabled person (in addition to other allowances) | €159,325 | €159,325 |
| Other persons | €1,594 | No general allowance |
A brother or sister is in principle exempt from inheritance duties if, at the time of death, they are single, widowed, divorced or legally separated, aged over 50 or suffering from a disability preventing them from working, and if they lived with the deceased during the five years preceding the death.
The direct-line scale (children, parents)
| Taxable share after allowance | Rate | To deduct (quick calculation) |
|---|---|---|
| Up to €8,072 | 5% | €0 |
| From €8,072 to €12,109 | 10% | €404 |
| From €12,109 to €15,932 | 15% | €1,009 |
| From €15,932 to €552,324 | 20% | €1,806 |
| From €552,324 to €902,838 | 30% | €57,038 |
| From €902,838 to €1,805,677 | 40% | €147,322 |
| Above €1,805,677 | 45% | €237,606 |
The other scales
| Relationship | Taxable share after allowance | Rate |
|---|---|---|
| Brother or sister | Up to €24,430 | 35% |
| Brother or sister | Above €24,430 | 45% |
| Relative up to the 4th degree (nephew, niece, uncle, aunt, first cousin, etc.) | The whole taxable share | 55% |
| Relative beyond the 4th degree or unrelated person | The whole taxable share | 60% |
A worked example
Lucie, a French tax resident, is the sole heir of her mother, who was domiciled in France, and inherits net assets of €2,000,000, of which €800,000 are located abroad, on which €120,000 of tax was paid in the country where they are located.
| Step | Calculation | Amount |
|---|---|---|
| Taxable share after allowance | €2,000,000 − €100,000 | €1,900,000 |
| Duties under the scale | €1,900,000 × 45% − €237,606 | €617,394 |
| Limit of the tax credit (French duties on the foreign assets) | €617,394 × 800,000 ÷ 2,000,000 | €246,958 |
| Tax credit (article 784 A) | Tax paid abroad, within that limit | − €120,000 |
| Duties due in France | €617,394 − €120,000 | €497,394 |
And for an international gift?
The same territorial rules in principle apply to gifts (see the first table). Gift tax treaties are very rare: failing one, French rules apply in full. The allowances are shown in the table above; they are in principle renewed every fifteen years.
Gifts of money made by a donor under 80 to an adult child, grandchild or great-grandchild (or, where there are no descendants, to a nephew or niece) in principle also benefit from an exemption of €31,865 every fifteen years; the gift is in principle declared or registered within the following month. In addition, until 31 December 2026, gifts of money used within six months to acquire a new home or for energy renovation works on the main residence may, under conditions, be exempt up to €100,000 per donor (article 790 A bis of the French General Tax Code).
The scale for gifts between spouses or PACS partners
| Taxable share after allowance | Rate | To deduct (quick calculation) |
|---|---|---|
| Up to €8,072 | 5% | €0 |
| From €8,072 to €15,932 | 10% | €404 |
| From €15,932 to €31,865 | 15% | €1,200 |
| From €31,865 to €552,324 | 20% | €2,793 |
| From €552,324 to €902,838 | 30% | €58,026 |
| From €902,838 to €1,805,677 | 40% | €148,310 |
| Above €1,805,677 | 45% | €238,594 |
Direct-line gifts follow the direct-line scale presented above; gifts between brothers and sisters, to other relatives or to third parties follow the other scales.
What can happen if nothing is declared?
An estate or gift taxable in France and not declared may lead to a reassessment of the duties, with late-payment interest and, depending on the case, surcharges, which are higher after a formal notice or in the event of a deliberate failure.
In practice, undeclared funds inherited abroad are sometimes left where they are. However, the automatic exchange of banking information makes such assets increasingly visible to the French tax authorities. Depending on the case, regularisation may be considered; its terms deserve to be examined with a lawyer.
The information on this page is general. As each international estate or gift is different, an analysis with a lawyer is generally useful before taking any step.
What I see in my cases
For gifts, the most frequent error I come across is declaring in France, on form 2735, a gift that was exempt in France under the tax treaty. Such an exemption depends on the treaty and on each situation: only an analysis by a lawyer can determine whether or not it is possible. For estates, it is generally the heirs who consult me; when the estate does not include any real estate located in France, I handle the French return from A to Z and, when useful, I work smoothly with foreign notaries (where there is real estate in France, the matter in principle falls to a notary, and I cannot act).
When the full return cannot be prepared within the French deadline (in principle twelve months for a death abroad), a provisional return, supplemented later, is generally well received and, if the file is well presented, rarely followed by questions. More rarely, the deceased’s tax domicile is disputed: these cases are complex, because the heirs do not always have access to the deceased’s supporting documents.
FAQ
Is an heir resident in France taxed on an estate opened abroad?
In principle yes on assets located in France and, if they have been domiciled in France for at least six of the previous ten years, on the assets located abroad that they receive, subject to treaties. If the deceased was themselves domiciled in France, all their assets are in principle concerned.
What is the deadline for an estate return where the death occurred abroad?
In principle twelve months from the death; the deadline is six months where the death occurred in metropolitan France.
Is tax paid abroad deducted from French duties?
In principle yes, for tax paid on assets located outside France, within the limit of the French duties corresponding to those assets (article 784 A of the French General Tax Code), or, where relevant, according to the rules of the applicable treaty; supporting documents are required. Where a treaty is involved, it is necessary to have a lawyer check whether or not it allows this deduction.
Is an inherited foreign account declared every year?
In principle yes, on form no. 3916-3916-bis attached to the income tax return, for each year during which the heir holds or uses the account.
Is a gift received from a parent living abroad taxable in France?
It is in principle taxable if the donee is domiciled in France and has been for at least six of the previous ten years, or for assets located in France, subject to the rare gift tax treaties.
