French Inheritance Tax for Non-Residents and Cross-Border Families
French inheritance tax reaches further than most families expect. It can apply because the deceased lived in France, because an heir lives in France, or simply because some assets are located in France, and French real estate is always within the net. For cross-border families, understanding article 750 ter is essential.
We explain the three connecting factors, how French-situated assets are caught, the role of inheritance tax treaties, and the crucial difference between inheritance tax and succession law (governed for EU estates by the Succession Regulation), so an international estate holds no nasty surprises.
• France can tax an inheritance via the deceased’s residence, an heir’s residence, or French-situated assets (art. 750 ter).
• French real estate is always within French inheritance tax, whatever the family’s residence.
• Inheritance tax treaties (a smaller set than income-tax treaties) relieve double taxation where they apply.
• The EU Succession Regulation governs succession law, not tax, the two questions are distinct.
French inheritance tax across borders
French inheritance tax can reach far beyond France’s borders. Whether France taxes an inheritance depends on the residence of the deceased, the residence of the heir, and the location of the assets, under article 750 ter of the General Tax Code, and on any inheritance tax treaty. Cross-border families are frequently surprised by how wide the French net can be.
A French connection on any of these three fronts, a French-resident deceased, a French-resident heir, or French-situated assets, can bring an inheritance within French tax. Understanding which of these applies is the starting point for any cross-border estate.
This guide explains when France taxes an inheritance, how French-situated assets are caught, the role of treaties, and the difference between the tax rules and the separate question of which country’s succession law applies.
The three connecting factors (article 750 ter)
Article 750 ter sets out three situations in which France taxes an inheritance. First, if the deceased was a French tax resident, French tax can apply to their worldwide estate. Second, if the heir has been a French tax resident for a sufficient period, their share can be taxed in France. Third, regardless of residence, French-situated assets are taxable in France.
Any one of these connecting factors can trigger French inheritance tax. They mean that even a family with no French residents can face French tax simply because some assets are located in France.
Identifying which of the three factors applies is the essential first step in any cross-border French inheritance.
French-situated assets
French-situated assets, most importantly real estate located in France, but also certain other French assets, are taxable in France on death whatever the residence of the deceased and the heirs. A foreign family owning a French holiday home or investment property is therefore within the scope of French inheritance tax on that asset.
This is the connecting factor that most often surprises non-resident families: French property passes within the French inheritance-tax net even where no one involved lives in France.
If your estate includes French real estate, French inheritance tax is a near-certain consideration for your heirs.
The heir’s residence
If an heir has been a French tax resident for a defined period within the years before the inheritance, their share of the estate, including foreign assets, can be taxable in France, under article 750 ter. This factor catches estates where the deceased lived abroad but an heir lives in France.
It means that the residence of those inheriting, not only of the deceased, can bring an inheritance into French tax. Families with members living in France should bear this in mind.
Checking the residence history of each heir is part of assessing a cross-border inheritance.
The deceased’s residence
If the deceased was a French tax resident at death, France can tax their worldwide estate, wherever the assets and heirs are located. This is the widest connecting factor, bringing a global estate into French inheritance tax.
For someone who has lived in France, this means their entire estate, French and foreign, may be within French inheritance tax, subject to treaty relief. It is a key reason residency planning matters for estates.
The deceased’s residence is the broadest trigger of French inheritance tax and a central planning point.
Inheritance tax treaties
France has inheritance tax treaties with a number of countries (a different and smaller set than the income-tax treaties). Where one exists, it allocates taxing rights over the estate and prevents double taxation, often by giving relief for tax paid in the other country. Where no treaty exists, double taxation is mitigated only by France’s unilateral relief rules.
Checking whether an inheritance tax treaty applies, and what it says, is essential in any cross-border estate, as it can substantially change which country taxes what.
The presence or absence of an inheritance tax treaty is a decisive factor in cross-border estate planning.
Tax vs succession law: two different questions
It is vital to separate two questions. Inheritance tax (how much tax is due, and to which country) is one matter; succession law (who inherits what, and the rules of devolution) is another. They are governed by different rules and can point to different countries.
Within the EU, succession law is largely governed by the EU Succession Regulation (often called Brussels IV), which lets a person choose the law of their nationality to govern their succession, but this concerns the civil-law devolution, not the tax.
Confusing the tax question with the succession-law question is a frequent and serious error in cross-border estates.
The EU Succession Regulation (Brussels IV)
The EU Succession Regulation determines which country’s succession law applies to an estate, and allows an individual to elect the law of their nationality. This can be valuable for families wishing a particular national law to govern who inherits, for instance, to manage France’s forced-heirship rules.
Crucially, the Regulation deals with the civil devolution of the estate, not with inheritance tax: French inheritance tax can still apply under article 750 ter even where another country’s succession law governs the estate.
Using the Regulation for succession law, while addressing French tax separately, is the correct approach for cross-border estates.
Forced heirship in France
French succession law includes forced heirship (réserve héréditaire), reserving a portion of the estate for certain heirs (typically children). This can constrain how a French estate is distributed, and surprises families used to greater testamentary freedom.
The EU Succession Regulation may allow the law of another nationality to govern, potentially avoiding French forced heirship for the civil devolution, but the interaction with French rules is complex and must be handled with care.
Understanding forced heirship, and the options around it, is important for anyone with French assets or French-resident heirs.
Allowances and the relationship to the deceased
French inheritance tax depends heavily on the relationship between the deceased and each heir. Spouses and civil partners benefit from a particular treatment, while children, more distant relatives and unrelated heirs face different allowances and rates. The closer the relationship, generally the more favourable the treatment.
This means the same estate can generate very different tax depending on who inherits. Planning the devolution with the relationships and allowances in mind can significantly affect the overall charge.
The relationship-based allowances and rates are central to estimating and planning French inheritance tax.
Gifts during lifetime
Lifetime gifts are a key planning tool. French rules provide allowances for gifts that can renew over time, allowing wealth to be passed gradually with reduced tax, subject to rules that look back over a period to prevent abuse. Planned gifting can substantially reduce the eventual inheritance-tax burden.
For cross-border families, the treatment of gifts must be checked against both French rules and any treaty, as the location of assets and residence of the parties matter here too.
A considered lifetime-gifting strategy is one of the most effective ways to reduce French inheritance tax over time.
French real estate and structuring
Because French real estate is always within the French inheritance-tax net, how it is held matters. Holding French property through a company (such as an SCI), or via dismemberment of ownership, can affect both the management and the transmission of the asset, though it does not remove French taxation of French-situated property.
These structures address civil and practical objectives and can assist transmission, but they must be set up correctly and with the tax consequences understood. They are not a way to escape French inheritance tax on French property.
How you hold French real estate is a real planning lever for transmission, within the limits of French tax.
Avoiding double taxation
Where more than one country taxes the same inheritance, relief comes from an inheritance tax treaty if one exists, or otherwise from France’s unilateral relief, which can credit foreign inheritance tax against the French charge in defined circumstances. The mechanism depends on the countries and assets involved.
Checking the relief available, by treaty or unilaterally, is essential to avoid the same assets bearing inheritance tax twice. It is a frequent issue in cross-border estates.
Securing the right double-tax relief is a core part of managing a cross-border inheritance.
Common cross-border inheritance mistakes
The frequent errors are: confusing succession law with inheritance tax; assuming the EU Succession Regulation removes French tax (it does not); overlooking that French real estate is always taxable in France; ignoring an heir’s French residence; and missing an applicable inheritance tax treaty. Each can lead to unexpected tax or disputes.
These mistakes often come to light only on death, when they are hardest to correct. They are avoidable with proper cross-border estate planning during lifetime.
Avoiding them requires treating the tax and the succession-law questions separately and planning both.
When advice is essential
Cross-border inheritances almost always warrant professional analysis: the three connecting factors, the treaty position, the succession-law election, forced heirship and the relationship-based allowances interact in ways that are easy to get wrong and expensive to fix.
A clear diagnosis identifies where France can tax, whether a treaty applies, how to handle succession law, and how to plan gifts and structuring, turning a complex international estate into a managed one.
The assessment is built to map a cross-border estate. Start the assessment →
In summary
French inheritance tax can apply through any of three factors, a French-resident deceased, a French-resident heir, or French-situated assets, under article 750 ter, with treaties relieving double taxation where they exist. French real estate is always within the net, whatever the family’s residence.
Separately, the EU Succession Regulation governs which country’s succession law applies and allows a choice of national law, but it does not remove French inheritance tax. Keeping the tax and the law questions distinct, and planning both, is the key to a sound cross-border estate.
For any family with French assets or French-resident members, early cross-border estate planning is the best protection against surprise tax and disputes.
The spouse and civil partner
The surviving spouse or civil partner benefits from a particularly favourable treatment under French inheritance tax. The transmission between spouses (and PACS partners) is treated generously compared with transmissions to more distant heirs, reflecting the protection of the surviving partner.
This favourable treatment is an important planning element: how an estate is arranged between a spouse and children, for instance, affects the overall tax. The relationship-based rules reward planning the devolution.
Understanding the spouse’s favourable position is central to planning a cross-border French estate.
Children and the next generation
Transmissions to children benefit from allowances and a graduated rate scale, and lifetime gifts to children using renewable allowances are a classic way to pass wealth gradually with reduced tax. The treatment is generally favourable, but large estates can still face significant tax on the portion above the allowances.
For cross-border families, the children’s residence and the location of assets affect how French tax applies to their inheritance, alongside the allowances. Planning across generations is particularly valuable.
A considered, multi-generation plan makes the most of the allowances available for children.
More distant and unrelated heirs
Transmissions to more distant relatives or unrelated heirs face much less favourable allowances and higher rates. An estate passing to, say, a friend or a distant relative can bear a heavy charge compared with one passing to a spouse or children.
This makes the choice of heirs, and the structuring of the estate, especially important where the intended beneficiaries are not close relatives. The tax difference can be very large.
Where heirs are distant or unrelated, planning the transmission is particularly important to manage the tax.
Life insurance in transmission
French life insurance (assurance-vie) has a specific and often favourable treatment in transmission, outside the ordinary inheritance rules within limits, making it a widely used tool for passing wealth. For cross-border families, the treatment depends on the residence of the parties and the nature of the contract.
Because life insurance follows its own transmission rules, it can complement an estate plan, though its cross-border treatment must be checked rather than assumed.
Where relevant, life insurance is a valuable component of a French transmission strategy.
Planning a cross-border estate
Effective planning combines several levers: choosing the applicable succession law (via the EU Regulation) where helpful; using lifetime gifts and renewable allowances; arranging the holding of French real estate; and structuring transmission with the relationship-based allowances in mind, all while addressing French inheritance tax under article 750 ter.
Because tax and succession law are distinct, both must be planned together but separately analysed. A coherent plan addresses who inherits (law) and how much tax is due (tax) as two coordinated questions.
A joined-up plan, treating tax and succession law in parallel, is the hallmark of sound cross-border estate planning.
Start planning early
Cross-border estate planning is far more effective when started early. Lifetime gifts need time to use renewable allowances; succession-law choices are best made and documented in advance; and structuring French assets takes planning. Leaving everything to be resolved on death forecloses the most valuable options.
Early planning also reduces the risk of disputes among heirs and of surprise tax, both common in unprepared cross-border estates. Time is one of the most valuable resources in estate planning.
Beginning the planning early is the surest way to manage French inheritance tax and protect your heirs.
Documenting a cross-border estate
A cross-border estate benefits from clear documentation: an inventory of assets and their location, the residence histories of the deceased and heirs, any succession-law election, records of lifetime gifts, and the terms of any life-insurance contracts. This file underpins both the tax analysis and the smooth administration of the estate.
Assembling it during lifetime, rather than leaving heirs to reconstruct it, reduces both tax risk and the risk of disputes. It is the practical backbone of an orderly international succession.
Good documentation, prepared in advance, is one of the most valuable gifts to one’s heirs in a cross-border estate.
In one sentence
French inheritance tax can reach an estate through the residence of the deceased, the residence of an heir, or French-situated assets, and French property is always within the net, while the EU Succession Regulation governs only which succession law applies, not the tax.
Keeping these two questions distinct, planning gifts and structuring early, and checking any inheritance tax treaty are the keys to a managed cross-border estate. The alternative is surprise tax and avoidable disputes.
Plan the tax and the law together but separately, and start early, that is the heart of cross-border French estate planning.
Frequently asked questions
When does France tax an inheritance?
Under article 750 ter, in three cases: the deceased was a French resident (worldwide estate); an heir has been a French resident for a defined period (their share); or the assets are situated in France (those assets). Any one factor can apply.
Is French property always taxable in France on death?
Yes. French-situated assets, most importantly real estate located in France, are within French inheritance tax whatever the residence of the deceased and heirs.
Does the EU Succession Regulation remove French tax?
No. The EU Succession Regulation (Brussels IV) governs which country’s succession law applies and allows a choice of national law, but it concerns the civil devolution, not inheritance tax. French tax can still apply under article 750 ter.
What is forced heirship?
French succession law reserves a portion of the estate for certain heirs (typically children). The EU Succession Regulation may allow another national law to govern the devolution, but the interaction with French rules is complex.
Are there inheritance tax treaties?
France has inheritance tax treaties with a number of countries, a smaller set than income-tax treaties. Where one applies, it allocates taxing rights and relieves double taxation; otherwise, unilateral relief may apply.
How can French inheritance tax be reduced?
Through lifetime gifts using renewable allowances, planning the devolution with the relationship-based allowances in mind, and appropriate holding of French real estate, within the limits of French tax, which always reaches French-situated property.
The assessment identifies where France can tax your estate, whether a treaty applies, how to handle succession law, and how to plan gifts and structuring, turning a complex international estate into a managed one. Start the assessment →
Related English guides
Tax for non-residents · Leaving France · Exit tax · Impatriate regime · Selling French property
Sources: French General Tax Code (art. 750 ter connecting factors, allowances and rates); inheritance tax treaties; EU Succession Regulation 650/2012 (succession law, not tax). This is general information, accurate as of June 2026, and not personalised advice; tax rules and treaties change and must be checked against your own situation.