INHERITANCE & GIFTS
THE ULTIMATE EXTRACTION REPORT — They tax you even after death
Data 2025
Inheritance tax is the ultimate tax: the State levies on wealth that has already been taxed throughout a lifetime (income tax, VAT, property tax, CSG…). The rate goes from 5% to 45% for direct descendants, and hits 60% for non-relatives. But only 15% of estates actually pay tax — the ultra-wealthy always find optimizations.
DIRECT LINE BRACKETS (parent → child)
Allowance: €100,000 per parent per child (renewable every 15 years)
| Bracket (after allowance) | Rate |
|---|---|
| 0 € — 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% |
| 1 805 677 € — ∞ | 45% |
Brackets frozen until 2028 — real erosion ~25% since 2012.
OTHER TRANSFERS
Siblings
- ► Allowance: €15,932
- ► 35% up to €24,430
- ► 45% above
Non-relatives / partners
Flat rate: 60% (after €1,594 allowance)
LIFE INSURANCE (outside estate)
- ► Before 70: €152,500 allowance per beneficiary, then 20% / 31.25%
- ► After 70: €30,500 global, then standard rates (interest exempt)
DUTREIL PACT — BUSINESS TRANSFER
75% exemption on value. Effective rate: ~1.4% on a €1M business.
INTERNATIONAL COMPARISON
| Country | Top rate | Allowance |
|---|
STATISTICS
- ► DMTG revenue: ~€18.5B (2023)
- ► Estates actually taxed: ~15%
- ► Median inheritance: ~€70,000
- ► Average inheritance: ~€230,000
- ► Inheritance share of wealth: ~60%
FREQUENTLY ASKED QUESTIONS — INHERITANCE TAX
What is the inheritance tax rate in France?
5% to 45% for direct descendants (parent to child), with a €100,000 tax-free allowance per parent per child. For non-relatives: a flat 60% after a meager €1,594 allowance. Yes, sixty percent. Leave something to a friend in France, and the State takes more than they do.
How much can you pass on tax-free?
€100,000 per parent per child + €31,865 family gift (art. 790 G), renewable every 15 years. A couple with 2 children can transfer €527,460 tax-free with careful planning. The key word being 'careful' — this requires 15-year advance planning.
What percentage of estates actually pay inheritance tax?
Only about 15%. The remaining 85% fall below thresholds or benefit from exemptions (surviving spouse, life insurance, Dutreil business pact). The tax mainly hits estates between €200K and €2M — wealthy enough to owe, not wealthy enough to optimize away.
How does life insurance work for inheritance?
Before age 70: €152,500 per beneficiary is tax-free, then 20% up to €852,500, then 31.25%. After 70: only €30,500 total allowance, but accrued interest is exempt. The lesson: start early, or the State will be your biggest beneficiary.