International Inheritances: What Are Your Obligations in France?

International Inheritances: What Are Your Obligations in France?

Handling international inheritances can be complex, and the related tax obligations are often misunderstood.

The issue of inheritance tax territoriality is addressed under Article 750 ter of the French General Tax Code.

Two scenarios must be distinguished:

1. The deceased was domiciled in France at the time of death: In this case, all movable and immovable property is subject to taxation in France, regardless of its nature or location.

   Thus, both tangible assets (such as real estate) and intangible assets (like bank accounts, shares, and other investments), including property located abroad, must be included in the French inheritance declaration.

2. The deceased was domiciled abroad at the time of death: Here, two sub-scenarios must be considered:

   • The beneficiary (heir or legatee) is domiciled in France at the time of death and has been for at least 6 out of the last 10 years: All movable and immovable property, whether located in France or abroad, must be reported in the French inheritance declaration.

   • The beneficiary is domiciled outside of France: Only the French assets (such as real estate in France, French bank accounts, and shares in French companies) are included in the French inheritance declaration.

However, France has signed tax treaties with several countries aimed at preventing double taxation in the context of inheritance taxes. The provisions of these treaties must be taken into account, as they may modify the application of the rules mentioned above.

Due to the complexity of international estates, the involvement of a professional specializing in French tax law and real estate law is often essential.

The CM-Tax law firm and its team of bilingual French tax lawyers, based in Lyon and Marseille but operating across France, assist both French and foreign clients in analyzing their situations and complying with their declaration obligations related to international inheritances.

The CM-Tax firm advises the international community on all matters related to French tax law—including tax advice, litigation, and real estate law. We also assist with the sale and acquisition of French real estate.