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US or UK / France Inheritance
US or UK / France Inheritance: who taxes the estate and how to avoid double taxation?
Tax lawyer in Paris – Franco-American and Franco-British inheritance and gifts
Key points
- France taxes broadly: all of the deceased's assets if they were domiciled in France, assets located in France in all cases, and assets received by an heir who has been domiciled in France for at least 6 of the last 10 years (French General Tax Code (CGI), article 750 ter).
- Two separate treaties: with the United States, the treaty of November 24, 1978 covers estates and gifts; with the United Kingdom, the treaty of June 21, 1963 covers estates only.
- Double taxation: the treaties allocate the right to tax (real estate taxable where it is located, other assets according to domicile) and provide for a tax credit; failing that, article 784 A of the CGI allows, subject to conditions, the foreign tax paid on assets located outside France to be credited.
- French deadlines: the inheritance tax return (form 2705) must be filed within 6 months of the death if it occurred in France, and within 12 months in other cases.
- A tax lawyer determines tax domicile within the meaning of the treaties, coordinates the returns in both countries and secures the crediting of foreign taxes.
Summary
An estate that links France with the United States or the United Kingdom exposes the heirs to two very different tax systems: French inheritance tax (droits de succession) calculated on each heir's share (up to 45% in the direct line), US estate tax levied on the deceased's entire estate, and UK inheritance tax at a rate of 40% above a threshold.
Without prior analysis, the same asset can be taxed twice. Bilateral tax treaties make it possible to avoid this double taxation, provided that the deceased's domicile, the location of each asset and the deadlines for claiming the tax credit are correctly identified.
When does France tax an estate linked to the United States or the United Kingdom?
Article 750 ter of the French General Tax Code (CGI) sets out three cases:
- Deceased domiciled in France: all of their assets, in France and abroad, are taxable in France, regardless of where the heirs reside.
- Deceased domiciled outside France: only assets located in France are taxable (a property in Paris, accounts and shares in French companies…).
- Heir domiciled in France for at least 6 of the last 10 years: the foreign assets they receive from a non-resident deceased are in principle taxable in France.
These French rules apply subject to the treaties, which may restrict France's right to tax. This is the whole point of the analysis: the Franco-American treaty, for example, reserves the taxation of certain assets to the State of the deceased's domicile or nationality.
What are the differences between the France–United States and France–United Kingdom treaties?
| France – United States | France – United Kingdom | |
|---|---|---|
| Text | Treaty of November 24, 1978, as amended by the protocol of December 8, 2004 | Treaty of June 21, 1963 |
| Gifts | Yes, covered | No: estates only |
| Real estate | Taxable in the State where it is located (art. 5) | Taxable in the State where it is located |
| Other assets (accounts, securities…) | In principle taxable only in the State of the deceased's domicile or nationality (art. 8) | Taxable in the State of domicile |
| Elimination of double taxation | Tax credit (art. 12) | Tax credit granted by the State of domicile |
| Surviving spouse | Specific rules (art. 11): community property, US marital deduction | No specific rule |
For details of each treaty, see our dedicated pages: France – United States inheritance and France – United Kingdom inheritance.
US and UK trusts are also subject to a specific French tax regime: see our pages on US trusts and UK trusts.
How do you settle a Franco-American or Franco-British estate?
- Determine the deceased's tax domicile within the meaning of each country's domestic law and then, in the event of a conflict, within the meaning of the treaty (permanent home, center of vital interests, habitual abode, nationality).
- Draw up an inventory of the assets and their location: real estate, accounts, securities portfolios, life insurance policies, trusts, company shares.
- Identify the applicable civil law: in France, European Regulation No. 650/2012 in principle designates the law of the last habitual residence, unless the deceased chose their national law by will.
- File the returns in each country: form 2705 in France, Form 706 or 706-NA in the United States, IHT forms and grant of probate in the United Kingdom.
- Claim the tax credit within the deadlines set by the treaty, with proof of payment of the foreign tax.
Why engage a tax lawyer?
- Domicile analysis: this is the point that decides which State taxes the entire estate; it is prepared with evidence (housing, family, occupation, periods of stay).
- International coordination: working with the French notary and American or British professionals (attorneys, solicitors, executors) to align the declared values and timetables.
- Securing the tax credit: calculation of the creditable tax, compliance with claim deadlines, responses to the tax authorities' requests.
- Planning ahead: for the families concerned, advance planning (will, choice of law, gifts, matrimonial regime, existing trusts) often reduces the tax burden and the difficulties of settling the estate.
FAQ
My parent died in the United States or the United Kingdom and I live in France: do I have to pay inheritance tax in France?
It is possible. If you have been domiciled in France for at least 6 of the last 10 years, French law in principle provides for the taxation of the assets received, even if they are located abroad (French General Tax Code (CGI), article 750 ter). The applicable treaty may, however, limit this right to tax, and tax paid abroad is generally creditable. A case-by-case analysis is essential.
Do France and the United Kingdom have a treaty covering gifts?
No. The Franco-British treaty of June 21, 1963 covers estates only. In the case of a gift, only the domestic rules apply on each side; in France, the tax credit under article 784 A of the CGI may, subject to conditions, allow the tax paid abroad on assets located outside France to be credited.
What is the deadline for filing the inheritance tax return in France?
The inheritance tax return must be filed within 6 months of the death when it occurred in France, and within 12 months in other cases (French General Tax Code (CGI), article 641). After that, late-payment interest and, where applicable, a surcharge are applied.
Glossary
Estate tax: US federal tax on estates, calculated on the deceased's entire estate.
Inheritance tax (IHT): UK tax on estates, at the standard rate of 40% above the exemption threshold.
Treaty domicile (domicile conventionnel): the domicile adopted by the treaty when both States each consider that the deceased was domiciled in their territory.
Tax credit: a mechanism for deducting the tax paid abroad from the tax due in France, up to the amount of French tax relating to the same assets.
Further reading
- Article 750 ter of the CGI: territorial scope of inheritance and gift tax.
- Article 784 A of the CGI: crediting of tax paid outside France.
- Article 641 of the CGI: deadlines for filing the inheritance tax return.
- BOI-INT-CVB-USA-20 and BOI-INT-CVB-GBR-20: the French tax authorities' commentary on the estate tax treaties with the United States and the United Kingdom.
- Our pages and articles: international inheritance, international gifts, FAQ on international inheritance and gifts.
About the author
Me Marc Uzan is a tax lawyer in Paris who has practiced tax law exclusively for more than 20 years. A graduate of the Master's program in taxation at the Paris University of Law and of ESSEC, and holder of the DSCG, he assists individuals and families with their international tax matters: cross-border inheritance and gifts, foreign accounts, impatriation and expatriation, tax audits.
Page updated on September 25, 2026. The information above is general in nature and does not replace an analysis of your personal situation.
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