Who is exempt from inheritance tax?
In France, some heirs benefit from a full exemption:
- the surviving married spouse;
- the PACS partner (French civil partnership), on assets received by inheritance.
Note: unlike a married spouse, a PACS partner is not automatically an heir. A will is generally required to leave assets to them, while respecting the rights of reserved heirs (children).
How much inheritance tax do children pay?
Each child is entitled to a €100,000 allowance on the share received from each parent. A child inheriting €100,000 from their father or mother may therefore pay no tax at all, subject to gifts made over the previous 15 years.
Above this allowance, tax is calculated on a progressive scale:
| Taxable share after allowance | Rate |
|---|---|
| Up to €8,072 | 5% |
| €8,072 to €12,109 | 10% |
| €12,109 to €15,932 | 15% |
| €15,932 to €552,324 | 20% |
| €552,324 to €902,838 | 30% |
| €902,838 to €1,805,677 | 40% |
| Above €1,805,677 | 45% |
Rates apply band by band: reaching the 20% band does not mean paying 20% on the whole share.
Inheritance tax between brothers and sisters
A brother or sister benefits from a €15,932 allowance, then:
| Taxable share after allowance | Rate |
|---|---|
| Up to €24,430 | 35% |
| Above €24,430 | 45% |
A full exemption applies if all conditions are met: single, widowed, divorced or separated; over 50 or disabled and unable to work; and living with the deceased during the five years before death.
Inheritance tax for a nephew or niece
A nephew or niece inheriting directly from an uncle or aunt has a €7,967 allowance; the remainder is taxed at a flat 55%. Special rules apply when they represent a predeceased or renouncing parent.
Inheritance tax for an unrelated heir
An heir with no family tie to the deceased faces the heaviest taxation: a €1,594 allowance and a 60% rate. Disabled heirs benefit from an additional €159,325 allowance.
How is inheritance tax calculated on property?
A house, apartment or plot of land is valued at its market value on the date of death — the price it would fetch under normal market conditions. The calculation also takes into account:
- deductible debts (outstanding loans, funeral costs up to €1,500…);
- each heir’s share;
- the allowances applicable to each relationship;
- a 20% reduction on the main residence if occupied by the spouse, PACS partner or a minor child.
Example: how much does a child inheriting €200,000 pay?
A child receives a net share of €200,000, with no prior gifts.
Worked example
- Inherited share
- €200,000
- Personal allowance
- − €100,000
- Taxable share
- €100,000
Band by band
- €8,072 × 5%
- €403.60
- €4,037 × 10%
- €403.70
- €3,823 × 15%
- €573.45
- €84,068 × 20%
- €16,813.60
Rounded amount, direct-line scale, excluding notary fees and special cases.
Do you have to sell the property to pay the tax?
Not necessarily. Heirs can keep the property, finance the tax or sell. If at least 50% of the estate consists of non-liquid assets such as real estate, payment may be spread over up to three years, subject to approval and guarantees.
Why have the property valued?
An overvaluation means paying unnecessary tax; an undervaluation exposes heirs to a tax reassessment with penalties. A sound valuation also eases the division between heirs and prepares a possible sale.
MANGOLD REAL ESTATE provides reasoned valuations of houses, apartments and buildings in the context of an inheritance, based on comparable sales and in-depth market knowledge.
What is the deadline to file the inheritance return?
Generally six months after a death in mainland France, twelve months for a death abroad. A notary is mandatory whenever real estate is part of the estate.