{"id":124718,"date":"2026-01-09T09:01:44","date_gmt":"2026-01-09T09:01:44","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=124718"},"modified":"2026-01-12T16:33:00","modified_gmt":"2026-01-12T16:33:00","slug":"france-private-client","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/france-private-client\/","title":{"rendered":"France: Private Client"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-124718","comparative_guide","type-comparative_guide","status-publish","hentry","guides-private-client","jurisdictions-france"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">McDermott Will &amp; Schulte<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/12\/MWS_Logo_Teal_Primary-on-Dark.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">McDermott Will &amp; Schulte<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/12\/MWS_Logo_Teal_Primary-on-Dark.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Private Client laws and regulations applicable in France<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Which factors bring an individual within the scope of tax on income and capital gains?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Individuals who qualify as French residents are liable to income tax on a worldwide basis. Individuals who qualify as non-French residents are subject to income tax on French source income only.<\/p>\n<p>Individuals qualify as French residents if any of the following criteria apply:<\/p>\n<ul>\n<li>Their home (i.e., the center of personal life) is in France or, if the location of the home cannot be determined, their main residence is in France (i.e., the place where the individual stays more than 183 days in a given year, or more time than in any other jurisdiction)<\/li>\n<li>They carry out a professional activity in France, unless that activity is ancillary (however, officers of French companies with revenue in excess of \u20ac250 million are deemed to carry out a non-ancillary professional activity in France)<\/li>\n<li>Their center of economic interests is based in France.<\/li>\n<\/ul>\n<p>These criteria apply subject to the provisions of international tax treaties.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the taxes and rates of tax to which an individual is subject in respect of income and capital gains and, in relation to those taxes, when does the tax year start and end, and when must tax returns be submitted and tax paid?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Income tax is due at graduated rates or flat rates, depending on the nature of the income:<\/p>\n<ul>\n<li>Ordinary income (employment or self-employment income and real estate income) is subject to income tax at graduated rates (up to 45%), and social taxes at flat rates (9.7% on employment and self-employment income and 17.2% on real estate income)<\/li>\n<li>Financial investment income (dividends, interest and capital gains) is subject to income tax at a flat rate (12.8%), and social taxes (18.4%)<\/li>\n<li>Capital gains on real estate are subject to income tax at a flat rate (19%), social taxes (17.2%) and a surtax (up to 6%). They are eligible for a tax allowance depending on the holding period of the property (beginning after 6 years, and ending in full exemption after 30 years).<\/li>\n<\/ul>\n<p>In addition to income tax and social taxes, an individual\u2019s taxable income may be subject to:<\/p>\n<ul>\n<li>A contribution on high income at 3% (tax bracket above \u20ac 250,000) or 4% (tax bracket above \u20ac 500,000) may also apply (tax brackets are doubled for married couples)<\/li>\n<li>A top-up contribution bringing the minimum income tax rate to 20% (excluding social taxes) which applies in practice only to taxpayers subject to the contribution on high incomes and whose income consists mostly of financial investment income subject to the flat rate of 12.8%.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction provide advantageous tax regimes for individuals directly investing in or holding certain types of assets from an income tax or capital gains tax perspective?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>New French residents can benefit from the \u201cimpatriate\u201d tax regime, which allows significant exemptions on employment income and foreign source investment income for 8 years. This regime applies to individuals who transfer their residence to France for qualifying professional reasons and who have not been French residents at any point during the 5 year period preceding that transfer.<\/p>\n<p>French tax legislation also provides for tax wrappers for investment income, notably life insurance policies (gains are taxable only upon withdrawal) and share saving plans (gains are taxable only upon withdrawal and exempt from income tax subject to holding period requirement).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are withholding taxes relevant to individuals and, if so, how, in what circumstances and at what rates do they apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Income tax is France is generally withheld at source for recurring income (by employers for employment income, by the taxpayer for self-employment and by the payor for dividend and interest).<\/p>\n<p>French-source dividends paid to non-residents are subject to withholding tax at 12.8%. This rate increases to 75% for payments to blacklisted jurisdictions. Reduced rates may apply under applicable tax treaties.<\/p>\n<p>Capital gains derived from French situs properties (including interests in real estate-rich companies) and substantial participation in French companies (&gt;25%) are subject to withholding tax in France. The withholding tax on gains from substantial participation is eliminated by most tax treaties, with some exceptions (like Spain or Italy).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How does the jurisdiction approach the elimination of double taxation for individuals who would otherwise be taxed in the jurisdiction and in another jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>France generally applies tax treaties based on the OECD model, using the credit method to eliminate double taxation on foreign-source income received by French residents.<\/p>\n<p>Under this approach, France taxes the income but grants a foreign tax credit that is either equal to the foreign tax paid (generally capped at the French tax on the same income) or equal to the French tax on the same income (also known as a deemed-paid credit). A deemed-paid credit has a similar effect to an exemption but can increase the effective income tax rate for French source income subject to graduated rates. Some treaties extend deemed-paid credits beyond their usual scope (for example, the US-France tax treaty).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a wealth tax and, if so, which factors bring an individual within the scope of that tax, at what rate or rates is it charged, and when must tax returns be submitted and tax paid?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>France imposes a real estate wealth tax (imp\u00f4t sur la fortune immobili\u00e8re or IFI) on individuals whose net tax base exceeds \u20ac1.3 million as of January 1 of each year. French residents are liable to wealth tax on a worldwide basis, whereas non-French residents are subject to wealth tax on French situs property only. Rates range from 0.5% to 1.5%.<\/p>\n<p>Taxable assets include land, buildings, real estate rights and shares in entities holding real estate (for the portion of their value representing real estate). Business assets are excluded. The main residence benefits from a 30% discount on its value.<\/p>\n<p>Debts relating to assets subject to wealth tax, such as acquisition debts, renovation costs and property tax are deductible. There are, however, certain restrictions relating to loans granted by related persons or entities, or in fine loans.<\/p>\n<p>The wealth tax return is filed alongside the income tax return (May\u2013June), and payment is due in September.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is tax charged on death or on gifts by individuals and, if so, which factors cause the tax to apply, when must a tax return be submitted, and at what rate, by whom and when must the tax be paid?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>French inheritance and gift tax applies to transfers upon death or gift:<\/p>\n<ul>\n<li>On all assets, irrespective of their situs , if the deceased or donor is a French resident<\/li>\n<li>On all assets transferred from a non-French resident to a French long-term resident (i.e., a French resident at the date of the transfer that has been French resident for at least 6 years out of the past 10 years)<\/li>\n<li>On any French situs asset in other cases.<\/li>\n<\/ul>\n<p>Transfers are subject to graduated rates based on the relationship between the transferor and the beneficiary (up to 45% above \u20ac 1.8M for transfers to direct descendants). For determining applicable brackets and available allowances, there is a lookback period of 15 years.<\/p>\n<p>Heirs are liable for inheritance tax jointly on the entire succession. Other beneficiaries are generally liable for inheritance or gift tax on their respective transfers. Gifts must be reported immediately; inheritances within six months of death (one year if the decedent was not a French resident).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are tax reliefs available on gifts (either during the donor\u2019s lifetime or on death) to a spouse, civil partner, or to any other relation, or of particular kinds of assets (eg business or agricultural assets), and how do any such reliefs apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Allowances vary by relationship: \u20ac100,000 for transfers to (or from) a child, \u20ac31,865 for transfers to a grandchild and \u20ac15,932 for transfers to a sibling (lower allowances apply for more remote family members). Inheritances (but not gifts) between spouses or civil partners benefit from a full exemption.<\/p>\n<p>Partial exemptions apply for transfers of forest or agricultural lands subject to a long-term lease.<\/p>\n<p>Specific reliefs apply in split ownership arrangements and transfers of businesses (see \u00a713).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do the tax laws encourage gifts (either during the donor\u2019s lifetime or on death) to a charity, public foundation or similar entity, and how do the relevant tax rules apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Gifts to qualifying charities give rise to an income tax reduction of 66% of the value of the gift (capped at 20% of the taxable income). A 75% reduction applies to gifts to certain charities (capped at \u20ac 2,000).<\/p>\n<p>Gifts or bequests to qualifying charities are exempt from inheritance or gift tax.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is real property situated in the jurisdiction taxed, in particular where it is owned by an individual who has no connection with the jurisdiction other than ownership of property there?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Non-residents are generally subject to French taxes on French properties under the same rules as French residents (see \u00a72, \u00a76, and \u00a712).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction have any specific rules in relation to the taxation of digital assets?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are specific rules and guidance regarding the taxation of digital assets such as cryptocurrencies (e.g., Bitcoin, Ethereum), utility tokens, and NFTs.<\/p>\n<p>Gains derived from digital assets are generally taxed as financial investment income (12.8% income tax and 18.4% social contributions). Gains are taxed as self-employment income (graduated rates up to 45%) if they are realized as part of a professional activity (e.g., mining, trading on a regular basis).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are taxes other than those described above imposed on individuals and, if so, how do they apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Additional taxes that may be relevant for individuals include:<\/p>\n<p><strong>Healthcare tax (Puma contribution):<\/strong> Applies at progressive rate up to 6.5% on the net income of French residents whose income comprises almost exclusively financial investment or real estate income<\/p>\n<p><strong>Registration duties:<\/strong> Between 5.09% and 6.32% on real property transfers, 5% on transfers of shares in real estate-rich companies<\/p>\n<p><strong>Property tax:<\/strong> Annual tax due by the property owners or usufruct holders, assessed on a cadastral rental value<\/p>\n<p><strong>Housing tax:<\/strong> Annual tax on residential properties, assessed on a cadastral rental value, due by the person to which the property is available (owner, usufruct holder or tenant). The main residence is exempt.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction provide advantageous special tax regimes for individuals from a wealth tax, inheritance\/estate tax or gift tax perspective?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The main incentives for French gift and inheritance tax planning are split ownership arrangements and exemption applicable to businesses (Pacte Dutreil):<\/p>\n<ul>\n<li>The Pacte Dutreil is a 75% inheritance or gift tax exemption designed to facilitate the transfer of family businesses. To benefit from this exemption, shareholders must conclude a collective lockup commitment for at least two years, which must be followed by an individual holding commitment of four years. The collective lockup commitment must represent at least 17% of the share capital and 34% of the voting rights of the transferred company (10% and 20% respectively if the company is public) and one of the parties must hold a management position within the transferred company for at least three years following the transfer.<\/li>\n<li>Split ownership arrangements consist of dividing the ownership of a property into two separate rights: usufruct (the temporary or lifetime right to use the property and receive income from it), which is retained by the transferor, and bare ownership, which is gifted to the beneficiary. For French gift tax purposes, the value of bare ownership is a fraction of the value of full ownership based on the age of the usufruct holder (or the duration of the usufruct). At the expiry of the usufruct period, bare ownership converts into full ownership by operation of law and without any additional French gift or inheritance tax.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What steps might an individual be advised to consider before establishing residence in (or becoming otherwise connected for tax purposes with) the jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Typical pre-immigration planning could include:<\/p>\n<ul>\n<li>Triggering a step-up in basis of significant assets (e.g., through a contribution to a holding company) before the transfer of residence in order to reduce the French tax exposure on unrealized gains<\/li>\n<li>Gifts to descendants, including gifts of bare ownership, to limit French gift and inheritance tax exposure<\/li>\n<li>Reorganization of holding structures to avoid potential double taxation due to mismatch in characterization of entities or taxable events<\/li>\n<li>Review of the estate plan, such as wills and trusts, to mitigate adverse legal and tax consequences such as forced heirship, trust reporting and anti-abuse rules.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Once an individual has left (and is no longer connected for tax purposes with) the jurisdiction, does the jurisdiction charge any form of exit tax or retain taxing rights over the individual's directly held assets or structures which they created or have an interest in?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Long-term residents (see \u00a77) may be subject to an exit tax on unrealized capital gains on financial investment assets (e.g., shares, partnership interests, bonds) if the resident holds either more than 50% of a company in value or financial investment assets in excess of \u20ac800,000. The exit tax is at a flat rate of 31.4% (like other financial investment income) plus applicable contributions (see \u00a72).<\/p>\n<p>A deferral of payment is automatically granted in the case of transfer of residence to an EU member state or a jurisdiction allowing mutual collection assistance, otherwise, it is granted upon request and subject to guarantees. The exit tax becomes due in the case of sale of the securities subject to exit tax within 5 years after the transfer of residence.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the main rules of succession, and what are the scope and effect of any rules of forced heirship? Do any forced heirship rules apply automatically, or is it necessary for heirs to bring claims to enforce their rights?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>French law imposes forced heirship rules, guaranteeing to reserved heirs a minimum share of the estate. This rule is mandatory and cannot be overridden by will, unless the estate is not subject to French law.<\/p>\n<p>Reserved heirs are direct descendants or, if none, the surviving spouse. For example, if the deceased had two children, each child is entitled to a third of the estate.<\/p>\n<p>If the deceased or one of the reserved heirs was a resident or citizen of an EU member state, and the applicable inheritance law precludes the application of forced heirship rules, a specific compensatory levy may allow a reserved heir to claim French situs assets as compensation for their reserved share. This compensatory levy might face legal challenges from a French constitutional or EU law perspective.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a special regime for matrimonial property or the property of a civil partnership, and how does that regime affect succession?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In marriage, the default regime is community of property acquired during marriage, whereas premarital or inherited property remains separate. A marital agreement may provide for alternative regimes such as universal community property (all assets become community property, with exceptions), or separate property (all assets are separate, with exceptions). In civil partnerships, the default regime is separate property.<\/p>\n<p>Upon the death of one spouse, the matrimonial regime is liquidated. Community property is separated in two shares with one going to the surviving spouse and the other going to the estate of the deceased. The rights of the surviving spouse in the estate of the deceased depend on whether the deceased had a will or had children.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What factors cause the succession law of the jurisdiction to apply on the death of an individual?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>French succession law applies if the deceased\u2019s last habitual residence was in France or the deceased made a valid election in a will to apply French succession law. It can also apply to French situs assets in cases of renvoi under the conflicts of law rules of a non-EU state, Denmark or Ireland.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How does the jurisdiction deal with conflict between its succession laws and those of another jurisdiction with which the deceased was connected or in which the deceased owned property?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>France applies EU regulation 650\/2012 on successions (Brussels IV), which includes conflicts of law rules. The general principle under Brussels IV is that only one succession law should govern an estate. By default, it is the law of the deceased\u2019s last habitual residence, and by election, it can be the law of the deceased\u2019s nationality. This principle suffers an exception if the law of a non-EU state, Denmark or Ireland applies by default, and internal conflicts of law rules make a renvoi to French succession law for French situs assets.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In what circumstances should an individual make a Will, what are the consequences of dying without having made a Will, and what are the formal requirements for making a Will?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In the absence of a will, the estate of the deceased is distributed in accordance with intestacy rules. Children are primary heirs. The surviving spouse is also an heir, with rights in the estate that vary depending on the presence of children.<\/p>\n<p>A will is necessary to provide for an allocation of assets that deviates from intestacy rules, subject to forced heirship rules.<\/p>\n<p>Foreign individuals who own real estate in France should also make a will to elect a governing law for their estate and avoid conflicts of law rules.<\/p>\n<p>There are limited formal requirements to wills in France, which can be holographic or notarized. In an international context, a notarized will is strongly recommended.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the estate of a deceased individual administered and who is responsible for collecting in assets, paying debts, and distributing to beneficiaries?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Estates are generally administered by a French civil law notary, who is in charge of determining the respective rights of the heirs under intestacy rules or wills (if any), to make an inventory of the estate, to settle the debts and to file an inheritance tax return.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do the laws of your jurisdiction allow individuals to create trusts, private foundations, family companies, family partnerships or similar structures to hold, administer and regulate succession to private family wealth and, if so, which structures are most commonly or advantageously used?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>French domestic law does not allow individuals to create trusts or private foundations. The most common entities used to hold family assets are tax transparent companies, such as soci\u00e9t\u00e9s civiles or tax opaque companies such as soci\u00e9t\u00e9s par actions simplifi\u00e9es (SAS) or soci\u00e9t\u00e9s \u00e0 responsabilit\u00e9 limit\u00e9e (SARL).<\/p>\n<p>Soci\u00e9t\u00e9s civiles are mostly used to hold French real property. Tax opaque entities are more common for holding financial investments.<\/p>\n<p>Split ownership arrangements on interests in legal entities or real property are very common (see \u00a713).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are these structures constituted and what are the main rules that govern them?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Soci\u00e9t\u00e9s civiles are formed by at least two shareholders with unlimited liability and are restricted to civil activities (i.e., they are generally non-trading holding entities).<\/p>\n<p>SASs and SARLs are limited companies that can be formed by a sole shareholder. SASs are more flexible than SARLs and allow customized governance rules or different classes of shares.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the registration requirements for these structures and what information needs to be made available to the relevant authorities? To what extent is that information publicly available?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>French companies are registered with the local trade and companies register and file articles of association. The identity of the shareholders of soci\u00e9t\u00e9s civiles and SARLs is publicly available (which is not the case for SASs). Ultimate beneficial owners must be reported to the trade and companies register and may be disclosed to third parties only for bona fide reasons.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are such structures and their settlors, founders, trustees, directors and beneficiaries treated for tax purposes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Soci\u00e9t\u00e9s civiles default as tax transparent entities but can elect for corporate taxation. Conversely, SASs and SARLs default as opaque entities subject to corporate tax (except sole shareholder SARLs, which default as tax transparent but can elect for corporate taxation). SARLs can elect to be tax transparent if held exclusively by members of the same family.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are foreign trusts, private foundations, etc recognised?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Foreign trusts or private foundations are not recognized under French civil law but may have effect if valid under foreign law and are not contrary to French public policy.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are such foreign structures and their settlors, founders, trustees, directors and beneficiaries treated for tax purposes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Specific rules have governed the taxation of foreign trusts since 2011, but these rules do not form a coherent regime:<\/p>\n<ul>\n<li>For income tax purposes, trusts are generally regarded as opaque and distributions of income are taxed as investment income. Although there is limited guidance and this is subject to debate, revocable living trusts where the settlor, trustee and beneficiary are the same person could be regarded as transparent for income tax purposes<\/li>\n<li>For gift and inheritance tax purposes, the trust is regarded as transparent, which means that the trust assets are deemed to be owned by the settlor or deemed settlor. Transfers through a trust can be regarded as gifts (e.g., in the case of distribution of assets held in trusts to a beneficiary while the settlor is alive) or inheritance (e.g., if all the assets of the trusts are distributed to the beneficiaries upon the death of the settlor). Specific rules address the tax treatments of transfer that cannot be regarded as gifts or inheritance (e.g., if the assets remain held in trust after the death of the settlor). An anti-abuse rule imposes a flat 60% rate to trusts formed by a French resident settlor after May 11, 2011, unless the transfer through the trust qualifies as a succession or a gift.<\/li>\n<li>For wealth tax purposes, assets held in a trust are considered as belonging to the settlor or deemed settlor, unless the settlor or deemed settlor demonstrates that they derive no contributive capacity from the trust.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent can trusts, private foundations, etc be used to shelter assets from the creditors of a settlor or beneficiary of the structure?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The use of trusts or private foundations for asset protection purposes is possible, but its effectiveness depends on circumstances.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What provision can be made to hold and manage assets for minor children and grandchildren?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Parents are generally the legal representative of their children and can manage their assets on their behalf. Certain decisions would, however, be subject to court supervision, such as the sale or transfer of real property, taking a loan, sale of substantial investments, etc.<\/p>\n<p>French companies can be used to hold and manage assets for a minor (see \u00a722).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are individuals advised to create documents or take other steps in view of their possible mental incapacity and, if so, what are the main features of the advisable arrangements?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Incapacity can be anticipated to avoid burdensome legal proceedings (such as guardianship or curatorship) and ensure that personal wishes are respected. Common arrangements include:<\/p>\n<ul>\n<li><strong>Advance directives:<\/strong> Medical instructions regarding authorized or prohibited healthcare measures in case of incapacity<\/li>\n<li><strong>Appointment of a person of trust:<\/strong> A person who will be solicited by medical staff to decide on a course of treatment in case of incapacity (preferably with advance directives).<\/li>\n<li><strong>Future protection mandate:<\/strong> A power of attorney granted to a representative for asset management and personal protection purposes, which can include specific guidelines or wishes. The mandate will be restricted if it is not signed by a French civil law notary.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What forms of charitable trust, charitable company, or philanthropic foundation are commonly established by individuals, and how is this done?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Charitable entities are generally formed by one or several individuals or legal persons as non-profit associations (association \u00e0 but non lucratif), endowment funds (fonds de dotation) or public foundations (fondation reconnue d\u2019utilit\u00e9 publique):<\/p>\n<ul>\n<li>Non-profit associations are the simplest and most common entities. They are formed to carry out charitable activities and are incorporated upon declaration to public authorities. Associations are financed through gifts and membership fees. Non-profit associations have limited legal capacity (they can receive only informal gifts)<\/li>\n<li>Endowments funds are formed through an initial endowment either to fund other charitable entities or to carry out directly charitable activities. They are incorporated upon declaration to public authorities<\/li>\n<li>Public foundations are formed either to fund other charitable entities or to directly carry out charitable activities. They require an initial endowment of at least \u20ac1 million and are incorporated only upon a decree before the French Council of State. They are under significant government supervision.<\/li>\n<\/ul>\n<p>Charitable entities benefit from tax exemptions or reduced tax rates depending on the nature of their income. Gifts to these entities can give rise to income tax reductions for the donors (and to wealth tax reductions for gifts to public foundations). Formal gifts and bequests to endowment funds and public foundations are exempt from gift or inheritance tax.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the jurisdiction's approach to information sharing with other jurisdictions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>France engages in information exchange upon request, spontaneously and automatically with over 140 jurisdictions under CRS, FATCA and OECD frameworks.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What important legislative changes do you anticipate so far as they affect your advice to private clients?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The taxation of high-net-worth individuals is heavily debated in France. The two most significant practical developments are:<\/p>\n<ul>\n<li>From 2025, individuals resident in France are subject to a top-up tax (contribution diff\u00e9rentielle sur les hauts revenus or CDHR), ensuring a minimum effective income tax rate of 20% for taxpayers with income exceeding \u20ac 250,000 (single) or \u20ac 500,000 (couples)<\/li>\n<li>Potential implementation of new taxes on holding companies or on \u201cunproductive\u201d assets.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">4359<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/124718","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=124718"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}