Gifts Tax in France

Understand how gift tax is calculated in France...

French gifts tax automatically applies to gifts that are required to be made formally by deed or with judicial recognition. A lifetime gift by manual transfer does not necessarily have to be declared and taxed, although such gifts are brought into account when inheritance tax is computed if the donee is also a legatee of the estate.

Cash gifts

The specific exemption for cash gifts where the gift is made to a child, grandchild or, if there are no direct line descendants, to nieces or nephews is €31,865 (2011). This is provided the donor is less than 65 years old and the donee more than 18 years old. In addition, the gift should be declared and registered by the donee at their local tax office within one month of the gift. This exemption can be cumulated with other allowances, (e.g. the €100,000 from each parent for children, the grandchildren’s general €31,865 gift allowance or the €7,967 for nieces and nephews).  It renews every ten years, i.e. cash gifts totalling up to €31,865 (2016) can be given to each child every ten years tax free.

Tax rates, scope and reliefs may change.  Any statements concerning taxation are based upon our understanding of current taxation laws and practices which are subject to change.  Tax information has been summarised; an individual is advised to seek personalised advice.

Blevins Franks are the leading international tax and wealth management advisers to UK nationals living in Europe. Visit www.blevinsfranks.com.