FRANCE Law and Practice Contributed by: Elodie Mulon, Jennifer Tervil, Romane Lemaitre and Emmanuelle Bonboire-Barthélémy, Chauveau Mulon & Associés
This legal provision ended all distinctions between marriages of same-sex and opposite-sex couples by establishing a single institution open to all couples, regardless of their sexual orientation. Furthermore, in private international law, Article 202- 1, paragraph 2 of the Civil Code allows two persons of the same sex to marry when, for at least one of them, either their personal law or the law of the State in which they reside or are domiciled permits such a marriage. The Court of Cassation has also ruled that Moroc - can law prohibiting same-sex marriage is contrary to French international public policy. Marriage or partnerships grant the same rights to same-sex or opposite-sex couples. French law actively encourages charitable donations by offering significant tax benefits. These incentives, established in the CGI, aim to support public-interest organisations while allowing donors to benefit from tax reductions. Tax Incentives for Individuals Article 200 of the CGI provides for a personal income tax reduction for donations made by individuals domi - ciled in France. This reduction amounts to 66% of the donation value, up to 20% of the donor’s taxable income. Eligible donations include those made to: • organisations or initiatives of public interest with a philanthropic, educational, scientific, social, humanitarian, sporting, family-oriented, or cultural purpose; and • organisations that promote artistic heritage, environmental protection, or the dissemination of French culture and scientific knowledge (as sup - ported by the case law and legal provisions). 10. Charitable Planning 10.1 Charitable Giving
These provisions enable individuals to reduce their tax burden while supporting causes of general interest. Impact on Estate Planning Charitable giving has no direct impact on the donor’s estate. However, it can have a significant impact on the organisation receiving the gift. In France, inheritance tax is generally payable by the beneficiaries of an estate. However, certain associa - tions may be exempt from these duties, provided they meet specific conditions set out in the CGI. Legal framework for inheritance tax exemptions for associations Articles 794 and 795 of the CGI provide an exemp - tion from transfer duties for most legatee charities and non-profit organisations. These exemptions mainly apply to associations or foundations recognised as serving the public interest and engaging in philan - thropic, educational, scientific, social, humanitarian, sporting, family-oriented, or cultural activities, or in the protection of the natural environment or the promotion of French culture and scientific knowledge. However, it is important to note that not all associa - tions automatically qualify for this exemption. The ability to receive assets free of charge and benefit from this favourable regime depends on the nature of the association’s activities and their compliance with the criteria laid out in the above-mentioned articles. For example, some gifts made to organisations covered under subparagraph (b) of paragraph 1 of Article 200 of the CGI may not qualify for exemption, even if they are eligible for income tax deductions for donors. Distinction between eligible and non-eligible associations The list of qualifying activities for inheritance tax exemption under Articles 794 and 795 of the CGI does not entirely overlap with the types of organisations mentioned in Article 200 of the CGI. As a result, some declared associations, even if recognised as being of public interest and authorised to receive tax-deducti - ble donations or membership fees, may still be subject to inheritance tax.
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