Legal position verified as at 5 October 2026
The rules cited in this article are those in force at that date. They may change, in particular with the 2027 Finance Law.
Leaving France does not put an estate beyond the reach of the French tax authorities. Article 750 ter of the French Tax Code (code général des impôts, CGI) sets three connecting criteria, one of which many people discover too late: the heir’s domicile. A couple settled abroad for ten years whose children live in France passes on worldwide assets that are taxable in France.
The framework for a departure is set out on our page preparing to leave France.
The three cases under Article 750 ter
| Case | Condition | Tax base in France |
|---|---|---|
| 1° | The donor or deceased has their tax domicile in France within the meaning of Article 4 B of the CGI | All assets, whether located in France or outside France |
| 2° | The donor or deceased is not domiciled in France | Only assets located in France, including real estate held indirectly and securities issued by persons established in France |
| 3° | The heir, donee or legatee has their tax domicile in France and has had it for at least six of the ten years preceding the transfer | All assets received, whether located in France or outside France |
The third case applies regardless of the deceased’s domicile. It targets the heir, not the person making the transfer. This criterion has been in the text since the 1999 Finance Law; the Law of 29 July 2011 notably extended it to assets and rights held in a trust.
The text also deals with indirect holdings: where French real estate belongs to a legal entity in which the transferor, alone or with close family, holds more than half of the rights, it is taxable for the fraction that this real estate represents in the company’s total assets.
A worked example
A couple moves out of France in 2018 and properly transfers their tax domicile there. In 2026, one of them dies, leaving a net estate of €3,000,000, including €600,000 of real estate located in France. Two children inherit, both continuously domiciled in France for more than six years.
- Without 3° of Article 750 ter: only the French assets, €600,000, would be taxable in France, i.e. €300,000 per child. After the €100,000 allowance under Article 779, the taxable base comes to €200,000 per child, and direct-line duties to approximately €38,194 per child.
- With 3°: as the children have been domiciled in France for more than six of the last ten years, the entire estate received is taxable in France. Each receives €1,500,000, i.e. a taxable base of €1,400,000 after the allowance, and duties of approximately €412,678 per child.
The difference, of around €749,000 for the siblings, is due solely to the heirs’ domicile. Nothing in the parents’ situation changes it.
Inheritance tax treaties are rare
France has concluded a limited number of treaties specifically covering inheritance taxes, separate from income tax treaties. An income tax treaty therefore does not, on its own, resolve double taxation of an estate.
The official list of treaties in force, by country and by subject, is published by the tax authorities. It is the first document to consult when planning a departure, before any other consideration.
How to avoid double taxation on a French inheritance
Where there is no treaty, Article 784 A of the French Tax Code allows transfer duties paid outside France to be credited against the tax due in France. Only foreign tax paid on assets located outside France can be credited.
The mechanism reduces double taxation without always eliminating it. Where the foreign tax is low or nil, the credit is low or nil, and the French tax remains due in full.
How life insurance is treated
Life insurance does not follow the rules on gift and inheritance duties but has its own regime.
- Article 990 I: for death benefits corresponding to premiums paid before the insured reached 70, an allowance of €152,500 per beneficiary applies, followed by a levy of 20% on the taxable portion up to €700,000 and of 31.25% above that. This text has its own connecting condition: it applies in particular where the beneficiary was tax-domiciled in France for at least six of the ten years preceding the death, or where the insured was domiciled there on the date of death.
- Article 757 B: premiums paid after the insured reached 70 are subject to gift and inheritance duties, under the conditions it sets.
A policy taken out outside France also remains subject to the reporting obligation under Article 1649 AA of the CGI as long as the policyholder is domiciled in France. See our article on reporting accounts held outside France.
What can be planned in advance
- Check whether an inheritance tax treaty exists with the country concerned, before choosing a destination.
- Assess each heir’s position under 3° of Article 750 ter: a child who has lived outside France for more than four years no longer meets it.
- Make lifetime gifts where a gift is possible and desired, taking advantage of the allowances and the fifteen-year look-back rule. See our article on the rules on direct-line gifts (in French).
- Document the value of foreign assets, whose valuation will be reviewed in France if the worldwide tax base applies.
What counts as an asset located in France
2° of Article 750 ter covers movable and immovable property located in France. The concept is broader than it seems.
- Real estate and real estate rights located in France.
- Real estate held indirectly, through a company in which the transferor holds more than half of the rights, for the corresponding fraction.
- Receivables owed by a debtor established in France.
- Securities issued by the French State or by a legal entity established in France.
Placing a foreign company between the owner and a French property is therefore not enough to take the asset out of the French tax base, once the holding threshold is reached.
Civil law does not follow tax law
Every international estate raises two separate questions, and they do not receive the same answer.
The law governing succession determines who inherits and in what shares. It is set by conflict-of-laws rules, not by the French Tax Code. It may designate the law of the State of the deceased’s habitual residence, with an option to choose the law of their nationality.
Taxation follows the criteria of Article 750 ter and the treaties. An estate may therefore be governed by a foreign civil law and taxed in France, or vice versa.
In practice, a will drawn up abroad, valid under the applicable civil law, does nothing to change where the transfer is located for tax purposes.
Key points
- Three connecting criteria: the deceased’s domicile, the location of the assets, and the heir’s domicile for at least six of the last ten years.
- 3° of Article 750 ter makes the entire estate received taxable in France, whatever the deceased’s domicile.
- Inheritance tax treaties are rare: where there is none, the credit under Article 784 A reduces double taxation without always eliminating it.
Frequently asked questions
When does France tax an international estate?
In three cases: where the deceased was domiciled in France, on their worldwide assets; where they were not, on their French assets only; and where the heir has been domiciled in France for at least six of the previous ten years, on all the assets they receive.
Will my children living in France be taxed on my foreign assets?
Yes, if each of them was domiciled in France for at least six of the ten years preceding the transfer. The rule is assessed heir by heir.
Is there a treaty with the country I am moving to?
Treaties specific to inheritance are few and separate from income tax treaties. The official list published by the tax authorities should be consulted before choosing a destination.
How is tax paid abroad treated?
Article 784 A of the CGI allows it to be credited against French tax, but only for the part of that foreign tax which relates to assets located outside France.
Is life insurance exempt from inheritance tax?
It has its own regime. Benefits corresponding to premiums paid before age 70 bear the levy under Article 990 I after an allowance of €152,500 per beneficiary. Premiums paid after age 70 fall under Article 757 B.
Assessing your transfer
We map the connecting factors that apply to each asset and each heir, then quantify the scenarios. See our article on the taxation of French real estate owned by a non-resident, the one on gifting bare ownership, and the steps for leaving France. Every situation is different and deserves a dedicated analysis.
Official sources
- Article 750 ter of the French Tax Code, territorial scope of gift and inheritance duties – Légifrance (in French)
- Article 784 A of the French Tax Code, credit for tax paid outside France – Légifrance (in French)
- Article 990 I of the French Tax Code, levy on death benefits – Légifrance (in French)
- Article 757 B of the French Tax Code, premiums paid after age 70 – Légifrance (in French)
- Article 777 of the French Tax Code, rates of gift and inheritance duties – Légifrance (in French)
- Article 779 of the French Tax Code, allowances – Légifrance (in French)
- Official list of international tax treaties – impots.gouv.fr (in French)
This article sets out the law for general information purposes, as verified on the date of publication. It does not constitute legal advice. Every situation is different and deserves a dedicated analysis. Content compliant with the professional conduct rules of the legal profession.
