Property Ownership Costs | Inheritance Issues

Succession Laws:

British wills are recognised in France, but are much more costly to implement, so it's always advisable to draw up a French will in consultation with a lawyer. Leaving no will can cause a big headache and considerable costs for your heirs.

French law dictates that upon the death of a homeowner, the property is divided equally between the surviving spouse and any children. Shares in a company are easier to distribute than immovable property, enabling better management of property transfers.

Inheritance Tax:

In theory, inheritance tax is paid on the global assets of a French tax resident after they die. The beneficiaries of their will pay inheritance taxes, depending on how closely they are related to the deceased. Inheritance tax is payable on any French property owned by a non-resident.

There are several ways in which you can minimise an inheritance tax bill, and careful planning at the time of purchase is essential. In certain circumstances, for example, changes to a marriage contract can help, as can buying through an SCI property company (see above for details).

One of the most popular methods that couples opt for is to put a “clause tontine” in the conveyance, which, in effect, suspends the ownership of the entire property until one or other of them dies.

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