FRANCE Law and Practice Contributed by: Elodie Mulon, Jennifer Tervil, Romane Lemaitre and Emmanuelle Bonboire-Barthélémy, Chauveau Mulon & Associés
1.5 Stability of Tax Laws In France, wealth taxation is governed by the French Tax Code ( Code général des impôts ), but revised annually through the Finance Act, adopted at the end of each calendar year. This yearly legislative review introduces potential instability, particularly in the areas of inheritance and gift taxation, as well as the real estate wealth tax ( Impôt sur la fortune immobilière IFI). Several reforms – though not yet enacted – are recur - rent topics in parliamentary debates. • The Dutreil regime could be restricted, with pro - posals to tighten holding period requirements or the conditions for effective management; and • a reform of inheritance tax is under discussion, including reductions in current allowances, a more progressive rate structure for high net worth estates, and a shorter look-back period for prior gifts (currently 15 years). In this context, high net worth individuals increasingly seek to anticipate wealth transfers (eg, lifetime gifts, dismemberment of ownership, use of holding compa - nies), explore cross-border structuring options (trusts, expatriation, foundations), and implement robust legal safeguards for international estate planning through tailored estate and governance instruments. 1.6 Transparency and Increased Global Reporting No content provided in this jurisdiction. 2. Succession 2.1 Cultural Considerations in Succession Planning In France, several notable cultural and legal factors significantly shape succession planning. These fac - tors include family structure, attitudes toward inherit - ance, and the influence of the civil law system. The Concept of Property First of all, in France property is a fundamental liberty and French people are deeply attached to this notion.
Strong Tradition of Family Continuity and Legal Framework France has a deep-rooted civil law tradition, which tightly regulates succession through the forced heir - ship rules ( réserve héréditaire ). The Issue of Taxation Inheritance tax has a real impact on inheritance in France. France is a country with relatively high inher - itance tax rates. Many French people therefore try to organise their estate and the transfer of their assets with this in mind. These factors make succession planning a highly structured yet emotionally charged process, where law and family dynamics intersect closely. 2.2 International Planning In France, international estate planning is governed by specific rules of private international law, in particu - lar Regulation (EU) No 650/2012, which aims to har - monise international successions within the EU. This response examines the legal mechanisms available under French law to address the challenges posed by tax laws, rules of inheritance, and international trea - ties. The Legal Framework for International Successions in France Regulation (EU) No 650/2012 is the main legal instru - ment applicable to international successions opened on or after 17 August 2015. It introduced several key innovations, including the following. • Unity of succession: the law applicable to the suc - cession is that of the deceased’s habitual resi - dence at the time of death, unless the deceased expressly chose otherwise (professio juris), • The deceased may choose the applicable law of the country with which they have a substantial con - nection (national law). • The EU Regulation provides for the European Certificate of Succession (ECS). This tool facilitates the recognition and enforcement of decisions and authentic instruments relating to succession mat - ters across EU member states.
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