Excellent accompagnement de Maître Uzan. Très professionnel, disponible et clair dans ses conseils, notamment pour ma première déclaration fiscale en France après de nombreuses années à l'étranger. Dossier parfaitement suivi. Je recommande vivement.
International Inheritance
International inheritance tax: which laws, which taxes, which strategies?
Tax lawyer in Paris – 20 years of expertise in cross-border estates
Summary
- Applicable law: by default, the estate is governed by the law of the country of the deceased's last habitual residence; it is however possible, by will, to opt for one's national law in accordance with Regulation (EU) 650/2012.
- French taxation: France taxes assets located in France and resident heirs or donees on worldwide assets (French General Tax Code (CGI), article 750 ter); the rates range from 0% to 60% depending on the family relationship and the allowances.
- Tax credit: to avoid double taxation, article 784 A of the CGI allows the foreign tax paid on the same asset to be credited, up to the amount of French tax payable.
- The decisive role of the tax lawyer: they secure the choice of law, optimize the allowances, coordinate multi-jurisdictional returns and handle any audits or litigation.
What rules on jurisdiction and applicable law govern an international estate in 2025?
- EU Regulation 650/2012: establishes the jurisdiction of the country of last habitual residence and prevents concurrent proceedings from being opened; it also provides for the automatic recognition of decisions between Member States, which speeds up the settlement of intra-EU estates.
- Testamentary option for national law: during their lifetime, the deceased may designate, in a disposition of property upon death (will), the law of their nationality for their entire estate; this provision is particularly useful for dual nationals or expatriates wishing to maintain the French forced heirship reserve (réserve héréditaire).
- European Certificate of Succession (ECS): issued by a notary or court, it proves the status of heir and the powers of the administrator throughout the EU; it avoids legalizations and is a key document for foreign banks that require quick proof.
- Assets outside the EU: real estate located in a third country remains subject to local laws (e.g. British "probate"); the lawyer then coordinates several parallel procedures to harmonize the deeds and minimize conflicts of jurisdiction.
What French taxation applies to an estate that includes assets or heirs abroad?
| Situation | French inheritance tax | Tax credit (art. 784 A CGI) | Tax treaty | Notes |
|---|---|---|---|---|
| Non-resident deceased, asset located in France | Yes, on assets located in France (art. 750 ter 2°); scale from 5% to 60% depending on the family relationship, after allowances | No: the credit only covers tax paid abroad on assets located outside France | To be checked: a treaty may allocate taxing rights to another State | Return and payment within 6 months of the death if it occurred in France (12 months if it occurred abroad) |
| Non-resident deceased, asset located outside France, heir domiciled in France for at least 6 of the last 10 years | Yes (art. 750 ter 3°) | Yes, up to the amount of French tax relating to that asset | Varies | Pay attention to proof of the foreign payment |
| Deceased, asset and heir all outside France | No. If the deceased was domiciled in France, all of their assets are taxable (art. 750 ter 1°) | Not applicable | Not applicable | Informational return possible to secure the position |
| Deceased domiciled in France, asset located abroad | Yes, on all assets, in France and abroad (art. 750 ter 1°) | Yes: the tax paid abroad on that asset is credited, up to the amount of French tax relating to that asset | Yes if a treaty exists | The treaty prevails over article 784 A if it is more favorable |
How do you settle an international estate: what are the steps?
- Identify the jurisdictions: list the countries connected with the deceased (residence, nationalities) and check the inheritance tax treaties in order to anticipate any double taxation and reporting obligations.
- List all assets: draw up a detailed inventory (real estate, bank accounts, securities, crypto, life insurance, company shares), specifying the location, value on the date of death and the matrimonial regime affecting ownership.
- Collect the official documents: death certificates, certificates of inheritance, acts of notoriety (actes de notoriété), apostilles or legalizations, certified translations; these documents are essential for each jurisdiction and may take several months to obtain.
- Choose the applicable law: use a will or an ECS to demonstrate the law chosen; if no choice was made, provide proof of habitual residence through bills, a lease or consular registration in order to avoid a dispute over jurisdiction.
- Calculate the tax: in each country, apply the local allowances, then calculate any tax credit in France; a comparative spreadsheet makes it possible to adjust the distribution between heirs to limit the overall burden.
- File return 2705-SD: it must be signed and sent to the French tax office within 12 months of a death outside France (6 months if the death occurred in France), together with payment of the tax or a request for payment in installments.
How can double taxation of inheritance tax between France and another country be avoided?
- Check the applicable treaty: France has concluded 33 treaties covering Spain, the United States, the United Kingdom, etc.; each text specifies the allocation of taxing rights by type of asset (real estate, shares, receivables).
- Apply article 784 A of the CGI: in the absence of a treaty, France credits the foreign tax borne on the same asset up to the amount of the corresponding French tax; it is therefore necessary to isolate the taxed base and provide the official receipt.
- Choose the crediting method: the treaty may provide for an equal tax credit or an exemption with progression; the lawyer calculates the most favorable option, particularly when a third country applies a marginal rate lower than the French scale.
- Keep supporting documents: foreign receipts, valuation certificates, sworn translations, apostilles; without proof, the credit is refused and you pay twice. The lawyer organizes a secure data room to streamline exchanges with the authorities.
Why engage a tax lawyer specializing in international inheritance?
- Wealth optimization: allowances, split ownership (démembrement), setting up a trust or a family holding company can reduce the taxable base; the lawyer anticipates these structures before death or proposes, after the fact, tax-neutral options for dividing the estate.
- Legal security: drafting testamentary clauses compatible across several countries, obtaining tax rulings (rescrits) confirming the applicable rate, managing conflicts of laws to avoid competing forced heirship claims.
- Defense and litigation: preparing responses to requests for information from the registration department (ENR), representation before the conciliation commission or the Judicial Court (Tribunal judiciaire) in the event of an increase in the tax or a challenge to tax domicile.
- Logistical support: obtaining tax identification numbers (NIF) for non-resident heirs, opening escrow accounts to secure funds, coordinating international transfers and KYC checks to avoid a late bank freeze.
FAQ
Why does France tax me on an asset received outside France in an international estate?
France applies article 750 ter of the CGI: if you have been a French resident for at least six of the last ten years, it may tax the worldwide assets received, even when they are physically located abroad. This right to follow the assets is intended to prevent opportunistic expatriations.
However, you only pay the difference between the French scale and the tax already paid in the source country, thanks to the domestic or treaty tax credit, and only if you prove the foreign payment by means of a translated official receipt.
How do you calculate and apply the tax credit under article 784 A of the CGI for a house inherited abroad?
First determine the net taxable value in France after allowances. Calculate the corresponding French tax (0–60%). Compare it with the tax paid abroad: if the foreign tax is lower, France collects the difference; if it is higher or equal, no French tax is due.
Calculate the credit on form no. 2740, to be attached to return 2705-SD, and attach the receipt from the foreign tax authority, bearing an apostille or legalization, in order to obtain automatic crediting when the tax is assessed.
How do you have a will drawn up in another country recognized in France?
Have the will authenticated locally, then obtain either an apostille (Hague Convention) or consular legalization. The translation must be certified by a sworn translator. If the testator resided in the EU and chose their national law, record this option in the European Certificate of Succession so that the French notary applies it without exequatur.
For a non-EU country, the lawyer brings the matter before the Judicial Court (Tribunal judiciaire) in a procedure for opening a foreign will, in order to obtain a simplified exequatur and make the provisions enforceable.
Glossary & checklist
Habitual residence: The country where the deceased lived on a stable and permanent basis.
Allowance: Amount deducted before calculating the tax: €100,000 in the direct line.
European Certificate of Succession: A document recognized in the EU proving the status of heir.
Checklist: "5 reflexes for a smooth international estate"
□ Check the applicable law and tax treaties
□ Draw up a complete inventory of worldwide assets
□ Obtain an ECS or a certified local notarial deed
□ Calculate tax + tax credits before any transfer
□ File return 2705-SD on time and keep the receipts
Further reading
- CGI, article 750 ter: territorial scope of French inheritance tax.
- CGI, article 784 A: mechanism for crediting foreign tax.
- Regulation (EU) 650/2012: choice of law and European Certificate of Succession.
