Property Gifts and Inheritance

French inheritance tax is calculated on the property's market value at the date of death, after a 100,000 € allowance per parent and per child (Article 779 of the French General Tax Code), using the progressive scale of Article 777. The surviving spouse and the PACS partner are fully exempt.

Gifting a property requires a notarial deed, on pain of nullity (Article 931 of the French Civil Code). Each parent can pass 100,000 € to each child tax free, an allowance renewed every fifteen years (Articles 779 and 784 of the CGI). A donation-partage fixes values and prevents family disputes.

Gifting the bare ownership and keeping the usufruct lets you go on occupying or renting out the property while passing it on at reduced cost: tax applies only to the bare ownership, valued by the usufructuary's age (Article 669 of the French General Tax Code). On death, the usufruct rejoins the bare ownership tax free (Article 1133).

Selling an inherited property requires a notarial certificate of ownership registered with the French land registry and, in joint ownership, the co-heirs' agreement: unanimity in principle, or a two-thirds majority with court authorisation in certain cases (Article 815-5-1 of the French Civil Code). Capital gains run from the value declared in the estate.

The surviving spouse automatically enjoys one year of rent-free use of the home (Article 763 of the French Civil Code, a mandatory public-policy rule). Within that same one-year period, the spouse may then opt for a lifetime right of habitation (Article 764), unless the deceased excluded it by an authentic will.

The inheritance tax return must be filed within six months of a death occurring in mainland France, twelve months for a death abroad (Article 641 of the French General Tax Code). Any delay triggers interest of 0.20% per month (Article 1727) and a 10% surcharge from the thirteenth month (Article 1728).