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Gift Tax in France

A tax on 'gifts' applies in France and although allowances are available the process is complicated by the relationship with inheritance laws and taxes.

A gift tax has existed in France since Napoleon, mainly to bolster the entrenched inheritance rights of children and to minimise the leakage of revenues from inheritance tax.

Thankfully, however, there are allowances that can be used, and gifts granted in the normal process of daily life are excluded.

In addition, there are some tax optimisation approaches that can be taken, although it is necessary to formally declare gifts.

Gifts can also be taken into consideration as part of the inheritance process, so careful consideration needs to be given to their use.

We have recently updated our guide to give further elaboration to these issues, about which you can read on the clickable links in the table below.

This article was featured in our Newsletter dated 07/08/2018

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