Inheritance tax implications for French and non-French residents

What is taxed under French Inheritance Tax Law ?

The French tax code determines the inheritance tax liability as follows:

  • If the deceased is a French tax resident: on their worldwide estate
  • If the deceased or the heir are non-French tax resident for the past 6 years: only on the assets located in France
  • If the deceased or the heir is a French tax resident for at least 6 years over the last 10 years: on their worldwide estate

What is taxed under French Gift Tax Law ?

Any transfer of property made as a gift and by a person who is a French tax resident or if the donated asset is located in France.

Tax classes for French IHT and Gift Law

The tax rate depends on the relationship between the deceased/donor and the heirs/ recipient: