French inheritance tax: who pays, rates, allowances and the rules for British families

Maître Alexis Germe Cross-border tax International taxation

You own a home in France, you have retired there, or your children live in France while you remain in the United Kingdom or the United States? Sooner or later, one question arises: who will pay French inheritance tax, on which assets, and at what rate? The French system differs markedly from UK inheritance tax: it taxes each heir on the share received, at rates that depend on the family relationship, under Article 777 of the French General Tax Code^[3]. It can also reach assets held outside France^[1]. This guide explains who is taxed, how the tax is calculated in 2026, which exemptions apply, how life insurance is treated and what the EU Succession Regulation and the France-UK treaty change for British families.

What is French inheritance tax?

In French law, inheritance tax is called droits de succession. Together with gift tax, it is governed by the General Tax Code (Code général des impôts, or CGI). It is not levied on the estate as a whole, as in the United Kingdom, but on the net share received by each heir or legatee^[3].

The tax therefore depends on who inherits: a child, a sibling or an unrelated person do not pay the same tax on the same sum.

Test your knowledge

3 questions to see how this article can help you

1. What is the French inheritance tax allowance for each child inheriting from a parent?

€325,000 €100,000 €15,932

2. How much French inheritance tax does a surviving spouse pay?

20% after an allowance The same as a child None: the surviving spouse is exempt

3. Can a British national living in France choose English law to govern his or her estate?

Yes, under the EU Succession Regulation, by choosing the law of nationality No, French law always applies to residents of France Only for assets located in the United Kingdom

Who pays inheritance tax in France?

The territorial scope of French inheritance tax is set by Article 750 ter of the CGI^[1]. It depends on the tax domicile of the deceased and, in some cases, of the heir, assessed under Article 4 B of the CGI (home or main place of stay, main professional activity, centre of economic interests)^[2]. Nationality plays no part: a British citizen living in France is treated like a French citizen.

French inheritance tax: which assets are taxed?

1Deceased domiciled in FranceAll assets, wherever they are located in the world, are within the scope of French tax
2Deceased domiciled abroadOnly assets located in France, including French property held indirectly through companies
3Heir domiciled in FranceForeign assets received are also taxable if the heir has been French domiciled for at least 6 of the previous 10 years

These domestic rules may be limited by a tax treaty, such as the France-UK treaty on estates.

When the deceased was resident in France

If the deceased was tax domiciled in France at the time of death, French inheritance tax applies to all assets, whether located in France or abroad^[1]. Under French domestic law, a British retiree living in the Dordogne is thus taxable in France on a London flat or a UK portfolio, wherever the children live.

When the deceased lived outside France

If the deceased was not domiciled in France, only assets located in France are taxable, such as French real estate, French securities and debts owed by French debtors^[1]. Shares in French companies are French assets, as are shares in unlisted foreign companies mainly holding French real estate, in proportion to that property’s value^[1]. Our guide to the French taxes still due by non-residents explains the other obligations attached to French assets.

When the heir lives in France: the 6 out of 10 years rule

Even where the deceased lived abroad, foreign assets are taxable in France if received by an heir who is tax domiciled in France and has been so for at least six of the ten years preceding the year of receipt^[1]. A daughter settled in Bordeaux for eight years who inherits from her mother in Manchester may thus be taxed in France, subject to the applicable tax treaty.

[…] received by the heir, donee, legatee or beneficiary of a trust […] who has his tax domicile in France within the meaning of Article 4 B. However, this provision applies only where the heir, donee or beneficiary of a trust has had his tax domicile in France for at least six years during the ten years preceding the year in which he receives the assets.
Article 750 ter of the CGI, 3°, version in force, unofficial translation ^[1]

For American families, a separate France-US convention on estates and gifts, signed on 24 November 1978 and amended by a protocol of 8 December 2004, applies^[20][21]. Where the deceased was neither a French citizen nor domiciled in France, France may tax only French real estate, including shares in companies at least 50% of whose assets are French real estate, the assets of a permanent establishment in France and tangible movable property located in France; shares, debts, cash and other intangible assets are taxable in France only if the deceased was a French citizen or domiciled there^[20]. The 6 out of 10 years rule therefore does not reach those assets, unless they bear no US tax for a reason other than a specific exemption, allowance, exclusion, credit or deduction^[20]. Where France does tax, it grants the same allowances as if the deceased had been domiciled in France^[20].

How is French inheritance tax calculated?

For each beneficiary, the net estate is first determined (assets valued at the date of death, less deductible debts), then the share of each heir is established under the applicable succession law and any will. The allowance corresponding to the family relationship is deducted from that share, and the progressive scale of Article 777 of the CGI is applied to the balance^[3][4].

Gifts made by the deceased to the same beneficiary within the fifteen years before death are added back: they use up the allowance and push the inheritance into higher bands. Older gifts are disregarded^[8].

How French inheritance tax is calculated, step by step

Step 1Net estate: assets valued at the date of death, less deductible debts
Step 2Share of each heir under the applicable succession law and any will
Step 3Allowance for the family relationship deducted, after adding back gifts made to the same beneficiary in the previous fifteen years^[8]
Step 4Progressive scale of Article 777 of the CGI applied to the balance^[3][4]

French inheritance tax rates for children and parents

Between parents and children, in either direction, the rates range from 5% to 45%. The bands in force in 2026 are as follows^[3]:

up to €8,072: 5%;
from €8,072 to €12,109: 10%;
from €12,109 to €15,932: 15%;
from €15,932 to €552,324: 20%;
from €552,324 to €902,838: 30%;
from €902,838 to €1,805,677: 40%;
above €1,805,677: 45%^[3].

A simple example: a child inherits €400,000 from a parent, with no prior gifts. After the €100,000 allowance, the taxable share is €300,000. The tax amounts to €403.60 on the first band, €403.70 on the second, €573.45 on the third and €56,813.60 on the part between €15,932 and €300,000, that is approximately €58,194 in total.

French inheritance tax rates for siblings, nephews, nieces and unrelated heirs

Outside the direct line, the rates are much heavier^[3]:

brothers and sisters: 35% up to €24,430, then 45%;
relatives up to the fourth degree (nephews, nieces, first cousins, for example): 55%;
more distant relatives and unrelated persons: 60%.

The last category includes an unmarried partner who is neither married to nor in a civil solidarity pact (PACS) with the deceased, as well as stepchildren who have not been adopted. For blended families, common among British couples who have remarried, this point alone justifies a review of the estate plan.

What are the inheritance tax allowances in France?

The allowances (abattements) are deducted from each share before the scale is applied. Under Article 779 of the CGI and Article 788 of the CGI, the main amounts in 2026 are^[4][5]:

€100,000 for each child and for each parent;
€159,325 for an heir unable to work in normal conditions because of a physical or mental disability;
€15,932 for each brother or sister;
€7,967 for each nephew or niece;
€1,594 for any other heir who benefits from no other allowance^[4][5].

For the purposes of gift and inheritance tax, an allowance of €100,000 is applied to the share of each of the ascendants and to the share of each of the children, living or represented following predecease or renunciation.
Article 779 of the CGI, I, version in force, unofficial translation ^[4]

Some brothers and sisters escape tax entirely. Under Article 796-0 ter of the CGI, a sibling who is single, widowed, divorced or legally separated is fully exempt if, at the time of death, he or she was over fifty or suffered from a disability preventing work, and had lived continuously with the deceased for the five years before the death^[7].

Is the surviving spouse exempt from French inheritance tax?

Yes. Since 2007, the surviving spouse and the surviving PACS partner have been totally exempt from French inheritance tax, whatever the amount received^[6]. Lifetime gifts between spouses, by contrast, remain subject to gift tax under a separate scale^[3].

The surviving spouse and the partner bound to the deceased by a civil solidarity pact are exempt from inheritance tax.
Article 796-0 bis of the CGI, version in force, unofficial translation ^[6]

The exemption is reserved for married couples and PACS partners. An unmarried partner is taxed at 60% after an allowance of only €1,594^[3][5], a rule many unmarried British couples buying in France discover too late.

A UK civil partnership counts as a PACS: for gift and inheritance tax, the French tax authorities apply the PACS rules to partnerships registered abroad and expressly list the British civil partnership, unless the partnership is contrary to French international public policy, for example between close relatives^[22][23]. A marriage celebrated in the United Kingdom in accordance with local rules also qualifies, as the exemption covers the surviving spouse^[6]. Where one spouse is French, the official guidance states that a marriage that has not been transcribed in the French civil status registers has no effect for third parties in France and does not give access to the tax advantages of married couples^[24].

Life insurance and French inheritance tax (assurance vie)

The sums paid on death under a French life insurance policy (assurance vie) follow a specific regime, which depends on the age of the policyholder when the premiums were paid.

Premiums paid before age 70: Article 990 I of the CGI

For premiums paid before the age of seventy, Article 990 I of the CGI provides for a levy on the share of each beneficiary, after a fixed allowance of €152,500 per beneficiary, covering all policies taken out on the life of the same insured person. The levy is 20% on the taxable portion up to €700,000 and 31.25% beyond^[9]. Beneficiaries who are exempt from inheritance tax, such as the surviving spouse or PACS partner, are not subject to the levy^[9].

The levy has its own territorial rule: it applies where the insured person was tax domiciled in France at the time of death, or where the beneficiary is domiciled in France at that date and has been so for at least six of the ten preceding years^[9].

Premiums paid after age 70: Article 757 B of the CGI

For premiums paid after the age of seventy, Article 757 B of the CGI applies. The sums are subject to ordinary inheritance tax, according to the relationship between the beneficiary and the insured, but only up to the amount of the premiums paid after seventy, and after a global allowance of €30,500 shared between all beneficiaries^[10]. The investment growth on those premiums is not taxed.

French inheritance tax 2026 at a glance

Territorial scope	Article 750 ter of the CGI: worldwide assets if the deceased lived in France, French assets otherwise, foreign assets received by an heir resident 6 of the last 10 years^[1]
Surviving spouse or PACS partner	Fully exempt^[6]
Children and parents	€100,000 allowance, then 5% to 45%^[3][4]
Brothers and sisters	€15,932 allowance, then 35% and 45%, full exemption under conditions^[4][7]
Nephews and nieces	€7,967 allowance, then 55%^[3][4]
Unrelated heirs	€1,594 allowance, then 60%^[3][5]
Life insurance, premiums before 70	€152,500 per beneficiary, then 20% and 31.25%^[9]
Life insurance, premiums after 70	Inheritance tax on premiums above a €30,500 global allowance^[10]
Prior gifts	Added back if made within 15 years of death^[8]
Filing deadline	6 months after a death in mainland France, in principle 12 months for a death abroad^[15]

Forced heirship in France and the EU Succession Regulation

Tax is only half of the question. The other half is civil law: can you leave your estate to whomever you wish? French law protects children through the reserved share (réserve héréditaire), a form of forced heirship. Under Article 913 of the French Civil Code, gifts and legacies cannot exceed half of the estate if the deceased leaves one child, one third if he leaves two, and one quarter if he leaves three or more^[11].

Which law governs your estate: habitual residence or nationality?

Regulation (EU) No 650/2012, the EU Succession Regulation, applies to deaths on or after 17 August 2015^[12]. By default, the whole estate is governed by the law of the State of the deceased’s habitual residence at death^[12]. A Briton living in France will therefore, in principle and unless a choice is made, have French succession law and its forced heirship rules applied to the whole estate.

The Regulation, however, allows a person to choose the law of his or her nationality, expressly in a will or through its terms^[12]. British nationals can make this choice even though the United Kingdom is not bound by the Regulation, since the law it designates applies whether or not it is the law of a Member State^[12].

A person may choose as the law to govern his succession as a whole the law of the State whose nationality he possesses at the time of making the choice or at the time of death.
Regulation (EU) No 650/2012, Article 22(1), official English version ^[12]

Choosing English law: the limits of the compensatory levy

Since 1 November 2021, Article 913 of the Civil Code allows each child to claim a compensatory levy (prélèvement compensatoire) on assets located in France, where the deceased or at least one child is an EU national or habitually resident in the EU, and the foreign law applicable to the estate provides no protective reserved share mechanism for children^[11]. The Ministry of Justice has confirmed that French courts will apply this levy where the deceased chose the law of his or her nationality under the EU Succession Regulation and that law has no protective reserved share mechanism for children^[25]. A British national resident in France who chooses English law to disinherit a child may therefore see that choice partly neutralised on French assets. English law lets a child apply to the court for reasonable financial provision only where the deceased died domiciled in England and Wales^[26]. No official text and no published decision of the Cour de cassation yet says whether this discretionary remedy is such a mechanism: that point is assessed case by case, which calls for careful drafting.

Above all, the choice of succession law has no effect on tax: French inheritance tax still applies under Article 750 ter of the CGI and the relevant tax treaty.

French inheritance tax for British nationals: the France-UK treaty

France and the United Kingdom signed a convention on estates on 21 June 1963, in force since 30 June 1964^[13][14]. It covers inheritance only, not lifetime gifts^[18], and often reduces French tax exposure for British families:

Domicile: on the UK side, HMRC applies common law domicile to this convention^[18]; where the deceased is domiciled in both countries, the treaty decides by looking successively at the permanent home, the centre of vital interests, habitual abode and nationality^[13].
Deceased domiciled in Great Britain: France may not tax assets not located in France and disregards them in calculating the tax^[13], so the French rule on foreign assets received by an heir living in France does not reach them. The treaty’s location rules, however, apply only to assets taxed in both countries, or left untaxed in one of them by a specific exemption^[13]. For an asset the UK does not tax at all, which since 6 April 2025 includes assets outside the UK of a deceased who was not a long-term UK resident^[27], French law decides where the asset is located^[19]: accounts with French banks and bonds issued by French companies or the French State, which the treaty would otherwise place in Great Britain, are then French assets taxable in France^[1][13][19].
Location of assets: real estate is located where it stands; shares are located where the company was incorporated; sums payable under insurance policies are located where the deceased was domiciled^[13].
Tax credit: the State of domicile credits the tax levied by the other State on assets located there, up to its own tax on those assets, on a claim made within five years of the death^[13].

On the UK side, inheritance tax is charged at 40% above a nil-rate band of £325,000^[16]. Since 6 April 2025, its worldwide scope depends on long-term UK residence (UK tax residence for at least 10 of the previous 20 tax years), a status that can continue for up to 10 tax years after leaving the United Kingdom^[17]. A Briton who has recently moved to France may therefore fall within both systems for several years. Taking French tax advice for your family’s assets allows both sides to be reviewed together.

Case study

A British couple retired in the Dordogne

Consider two UK nationals who have lived in the Dordogne for ten years and are tax resident in France, with two adult children living in London. On the first death, whatever passes to the surviving spouse is free of French inheritance tax.

Assume that, on the second death, the survivor leaves an estate of €1,000,000 (a house and investments) in equal shares to the two children. Each receives €500,000, deducts the €100,000 allowance and is taxed on €400,000: about €78,194 per child, or €156,389 in total. As the deceased was domiciled in France, worldwide assets are within the scope of French tax, and the UK position must be checked in parallel under the 1963 treaty. Earlier gifts or life insurance taken out before age 70 could each change the outcome.

Illustrative example, not a real client case. Each situation calls for a personalised analysis.

How to reduce French inheritance tax legally

There is no universal solution, but several levers deserve to be examined well in advance:

Lifetime gifts: the €100,000 allowance per parent and per child is available again every fifteen years^[4][8].
Life insurance: premiums paid before 70 benefit from the €152,500 allowance per beneficiary^[9].
Marriage or PACS: for an unmarried couple, it turns a 60% rate into a full exemption^[3][6].
Choice of law and will: a will choosing the law of nationality can organise the transmission, within the limits of the compensatory levy^[11][12].
Property ownership: how a French property is held influences the outcome; see our article on French wealth tax on real estate, which also looks at how property is held.
Residence: the date of a move to or from France affects the 6 out of 10 years rule and the treaty position^[1][13].

Arrangements made solely to avoid tax, without any genuine family or patrimonial purpose, may be challenged by the French tax authorities.

French inheritance tax return: deadlines and formalities

Heirs must file a French inheritance tax return (form no. 2705-SD) within six months of the death when it occurred in mainland France and, in principle, within twelve months when it occurred abroad, for example in the United Kingdom; specific time limits apply in the French overseas departments^[15]. No return is required where the gross assets are below €50,000 for direct-line heirs and the surviving spouse or PACS partner, subject to conditions relating to prior gifts, or below €3,000 for other heirs^[15].

French inheritance tax: the timeline after a death

Date of deathApplicable law and taxable assets determined, valuation at that date
First weeksInventory of assets in France and abroad, identification of heirs and life insurance beneficiaries
6 or 12 monthsFiling of form 2705-SD and payment of the tax
Within 5 yearsClaim for a treaty tax credit where the France-UK treaty applies

Why seek advice from a French tax lawyer?

French inheritance tax combines tax law, civil law, European law and tax treaties. The same estate can be taxed very differently depending on the residence of the deceased and the heirs, the way assets are held, the date of the gifts and the wording of a will.

Maître Alexis Germe, a lawyer at the Bordeaux Bar, advises British, American and other English-speaking families and business owners on French inheritance tax, in France and remotely.

Do you own assets in France or have family living there? Arrange a confidential meeting with the Firm to look at your estate as a whole: where your assets are located, where you and your heirs live, and any gifts already made.

Sources and reference texts

Frequently asked questions about French inheritance tax

How much is inheritance tax in France for children?

Each child benefits from an allowance of €100,000 per parent. The balance is taxed on a progressive scale from 5% to 45%, with the 20% band applying between €15,932 and €552,324 of taxable share^[3][4].

Does a surviving spouse pay inheritance tax in France?

No. The surviving spouse and the surviving PACS partner are fully exempt from French inheritance tax, whatever the amount inherited. An unmarried partner, by contrast, is taxed at 60% after an allowance of €1,594^[6][5].

Do I pay French inheritance tax if I live in the UK?

If the deceased lived in the United Kingdom, France taxes the assets located in France, such as a French property. Under the 1963 France-UK treaty, assets situated outside France are not taxed in France when the deceased was domiciled in Great Britain. Where the UK does not tax an asset at all, however, French rules decide where it is located, so accounts with French banks or French bonds can then be taxed in France^[1][13][19].

Is French life insurance subject to inheritance tax?

For premiums paid before 70, a specific levy applies after an allowance of €152,500 per beneficiary, at 20% and then 31.25%. For premiums paid after 70, inheritance tax applies to the premiums above a global allowance of €30,500^[9][10].

Can I avoid French forced heirship by choosing English law?

A British national may choose the law of his or her nationality under the EU Succession Regulation. However, children may in some cases claim a compensatory levy on assets located in France, and the choice of law has no effect on French inheritance tax^[11][12].