Inheritance tax Côte d’Azur

Application of French inheritance tax

The rules on French inheritance tax apply if

• the deceased is resident in France for tax purposes or
• the assets to be transferred are located in France

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 inheritance tax on inheritances on the Côte d’Azur

There has been a double taxation agreement between Germany and France since 2007. If the acquirer or the testator was resident in France for tax purposes or if the estate includes assets in France, German inheritance tax may be payable in addition to French inheritance tax. In such cases, double taxation can often be avoided or mitigated by offsetting. As a rule, however, French taxation will take precedence. In this case, the French inheritance tax will exceed the German inheritance tax. This means that there is no longer any entitlement to payment of German inheritance tax in Germany.

Obligation to notify and file a tax return with the German tax office

German heirs must report their acquisition to the German tax office within three months. It is important to note that the tax obligation does not only arise when you can dispose of the estate, but already when you become an heir. The tax office can then request an inheritance tax return, which must be submitted within a period of at least one month. This deadline can be extended upon request.

When inheritance tax is due

In France, the deadline is based on the place of death of the deceased. If the deceased died within France, this is 6 months. If the deceased died outside France, the deadline is 12 months.