Gift tax Côte d’Azur

Scope of application of the French inheritance and gift tax law

The regulations on French inheritance tax apply if

• the deceased is resident in France for tax purposes or
• the donor or donee has been resident in France for tax purposes for at least six of the last ten years, or
• the assets to be transferred are located in France

General rules on gift tax

French gift tax uses a progressive system that is linked to the value of the net assets transferred. This means that only the value of the gift received is taken into account, not the total assets of the donor.

Taxation is as follows:

• Up to € 8,072 = 5 %
• 8.072 € – 12.109 € = 10 %
• 12.109 € – 15.932 € = 15 %
• 15,932 € to 552,324 € =20 %
• 552,325 € to 902,838 € = 30 %
• 902,838 € to 1,805,677 € = 40 %
• From € 1,805,677 = 45 %

General allowances

The allowances depend on the relationship between the heir and the deceased. The allowances are as follows:

• Children and their descendants €100,000
• For siblings € 15,932
• For nephews or nieces € 7,967
• Any other person €1,594

Spouses are completely exempt from inheritance tax. There are also other exemptions linked to French civil servant status or certain assets.

It is also important to note the tax relief on the inheritance of companies or shareholder shares. These can be exempt from tax by up to 75% if the beneficiary also assumes the obligations arising from the inheritance.

German gift tax

If the donor or the donee was resident in France for tax purposes, or if the asset was located in France, German gift tax may be payable in addition to French gift tax. In such cases, double taxation can often be avoided or mitigated by offsetting.