12. Gift Tax in France

12.3. Rates of French Gift Tax

If the value of the gift is larger than the allowances that are available then a liability arises for gifts tax on the value over the allowance.

The rate of taxation applicable depends on the type of gift, and the relationship to the donee.

The taxable amount is the sum applicable after deductions of the permitted allowance.

In addition, the tax is applied on a 'sliced' basis so that each slice of the total sum is taxed at a different rate.

The 2021 rates are as follows:

i. Gifts Between Parents and Children

Taxable Amount	Rate of Tax
Less than €8,072	5%
€8,072 - €12,109	10%
€12,109 - €15,932	15%
€15,932 - €552,324	20%
€552,324 - €902,838	30%
€902,838 - €1,805,677	40%
More than €1,805,677	45%

ii. Gifts Between a Married Couple/Civil Partners

Taxable Amount	Rate of Tax
Less than €8,072	5%
€8072 - €15,932	10%
€15,932 - €31,865	15%
€31,865 - €552,324	20%
€552,324 - €902,838	30%
€902,838 - €1,805,677	40%
More than €1,805,677	45%

iii. Gifts Between Brothers and Sisters

Taxable Amount	Rate of Tax
Up To €24,430	35%
Greater than €24,430	45%

Others family members are taxed at the rate of 55% and those outside the family at the rate of 60%.

There may also be notaire fees payable, as we set out later in section 6.

One way of reducing the amount of gifts tax payable is to reduce the taxable base and for you to pay the gift tax.

Example: If a parent were proposing to gift a child €200,000, but instead gifted them €168,171, on which you paid €31,829 gift tax (totalling €200,000) it reduces the amount of gift tax payable by around €7,000, as your child would otherwise pay €38,195 on a gift of €200,000, leaving them with €161,805.

Alternatively, if the gift is over €15,000 and it is declared to the authorities then you can by option, defer the payment of any gift tax until the death of the donor, when it would then be paid as part of the inheritance.

Next: Gifts of Real Estate

Back: Gift Tax Allowances

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