12. Gift Tax in France

1. Definition of a 'Gift'
2. Liability to Gift Tax
3. Rates of French Gift Tax
4. Gifts of Real Estate
5. Gifts & Inheritance Tax
6. Procedures for Making Gifts

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. Thus, using the rates and bands below, on a gift of €50,000 between a parent and a child the gifts tax payable would be a shade over €8,000.

The 2024/25 rates are as follows:

i. Gifts Between Parents and Children

ii. Gifts Between a Married Couple/Civil Partners

iii. Gifts Between Brothers and Sisters

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.

If the gift is over €15,000 and it is declared to the authorities then you can by option (by submission of form CERFA-2734 by the recipient) to defer the payment of any gift tax until the death of the donor, when it would then be paid as part of the inheritance. This option is not widely understood, but it could mean that if you live at least 15 years after having made the gift the liability to gift tax expires and it is considered as part of the inheritance, where of course there is a €100,000 inheritance tax allowance to each child. In the worst case, you child could invest the money during this period, on which interest would be earned to pay any taxes due.

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