Tax-free amounts French IHT allowance
Inheritance Tax Free allowance
It depends on degree of kinship with the deceased.
The free amount is for the donor, per recipient, every 15 years.
- Spouses or PACS (Civil) partner: no tax
- Children and parents: € 100 000
- Brothers and sisters: € 15 932
- Nephews and nieces: € 7 967
- Other beneficiaries: € 1 594
Gift tax free allowance
The gift tax allowances are currently as follows:
- Each child can receive:
- € 100 000 from each parent
- € 31 865 from each grandparent
- € 5 310 from each great grandparent
- Spouses and PACS partners can receive € 80 724
- Brothers & sisters can receive € 15 932
- Nephews & nieces can receive € 7 967
In addition, a special cash gift tax allowance exists: cash gifts up to € 31 865 and can be made by family members every 15 years.
Other tax-exemptions and tax reliefs
On family house
20% allowance on the market value of the house - to calculate the inheritance tax if the surviving spouse continues to live in the house.
Woods and forest
The exemption applies to 3/4 of the value.
For the donor per donee
Exempted up to € 152 500
Between € 152 101 and € 852 500 è 20 %
Above € 852 500 è 31,25 %
Historical monuments - listed monuments/houses
Exemption subject to convention between the heir and the administration regarding arrangements to be open to the public.
There are additional rules for gifts relating to life tenancy known in French as démembrement.
*The usufruitier = usufructuary has exclusive use of the assets during their lifetime - but on their death, the assets pass automatically (without further inheritance taxes) to the nu-propriétaire = bare owner
The purpose of this technique is to reduce the tax basis (up to 90% exemption).