Inheritance in France for a non-resident: the basics
Inheriting a property in France from abroad is a common situation, particularly for French expatriates or members of the French diaspora. France levies inheritance tax on all real estate located on its territory, regardless of the domicile of the deceased or the heirs. This rule, rooted in the principle of fiscal territoriality, applies even if the deceased was themselves a non-resident.
The inheritance is settled before a French notary, who draws up the deed establishing the heirs and files the inheritance declaration with the tax authorities within twelve months of the death. Non-resident heirs must organise themselves to follow this procedure remotely, often by granting power of attorney to a notary or agent in France.
Inheritance tax: who pays what?
Inheritance tax is calculated on the market value of the property at the date of death, after deduction of any outstanding debts of the estate. Rates and allowances depend on the family relationship between the deceased and the heir, exactly as for French residents.
| Family relationship | Allowance | Progressive rate (lower bracket) |
|---|---|---|
| Child | €100,000 | 5% to 45% |
| Spouse / Civil partner (PACS) | Full exemption | — |
| Brother / Sister | €15,932 | 35% to 45% |
| Nephew / Niece | €7,967 | 55% |
| Third party (non-relative) | €1,594 | 60% |
Inheritance tax must be paid in France within the legal deadlines (6 months if the deceased died in France, 12 months if they died abroad). Late payment incurs interest and penalties.
After the inheritance: keep, rent, or sell?
Once the inheritance has been settled, the non-resident heir must decide what to do with the property. Three main options are available, each with distinct tax consequences.
Keep the property vacant: no ongoing tax obligations, but the property is subject to the taxe foncière (property tax) and potentially the vacancy tax (taxe sur les logements vacants), depending on the local authority. These charges will need to be managed from abroad.
Rent the property: rental income is taxable in France. As a non-resident, you must declare this property income to the Non-Residents Tax Centre (CINR — Centre des Impôts des Non-Résidents). A minimum tax rate of 20% applies to net income. If you receive regular rental income, appointing a tax representative can simplify your administrative management.
Sell the property: any capital gain is taxable in France. If the sale price exceeds €150,000, the appointment of a DGFiP-accredited tax representative is mandatory.
When does the tax representative become involved in an inheritance?
Appointing an accredited tax representative is not automatically required in the context of an inheritance. It becomes mandatory in two main cases:
- When selling the inherited property: if the sale price exceeds €150,000 and the heir is a national of a state that has not signed an administrative assistance agreement with France (or if the capital gain is significant)
- In the event of rental income: if the non-resident heir receives French-source rental income and wishes to delegate the management of their French filing obligations
The accredited tax representative is also a valuable partner for optimising taxation on a subsequent sale: calculating exemptions, correctly applying holding-period allowances (starting from the deceased's original acquisition date, not the date of inheritance), and liaising with the tax authorities.
To navigate these procedures with peace of mind, consult our list of DGFiP-accredited tax representatives specialising in non-resident real estate matters.