Death of a non-british resident in france
Death of a British non-resident in France. What happens next?
Application of French or English taxation?
In order to open the estate, it is necessary to determine the latest home of the deceased at the time of death.
The country where the deceased lived has the right to tax the property of the deceased.
The French law states that for moveable property one will apply the law of the country of the last residence of the deceased, and for the real estate the law of the country where the property is located.
Goods France can tax:
- Properties located in France
- Property located in France and abroad if one of the heirs is / was French resident and at least 6 years for the last 10 years preceding death.
- When the deceased was not living in France the heirs will have to pay transfer duties for furniture and immovable property located in France.
FRANCO-BRITISH CONVENTION OF JUNE 21, 1963:
Real estate and real estate rights:
Article 4 section A: “The buildings are noted at the place where they are and the real estate rights, excluding all receivables guaranteed by mortgage, in the territory where the buildings they apply.
The question of whether a property or a right is resolved according to the legislation of the place in which the property is concerned or the good on which the proposed right “
Corporal: deem to be located at the place where the property is
Article 4 section B defines moveable assets as:
“Movable properties are subject to special provisions and actual rights, with the exception of pledge fees, relating to property of this nature, are deemed to be located where, as of the date of death, the goods considered or the property to which the envisaged rights apply or, if these goods are being transferred on the date of death, instead of their destination. Are required for property furniture governed by the present paragraph the banknotes and other monetary species with legal courses instead of their issuance. »
Intangible: located in place where the deceased died.
Tax residence : The tax domicile is in France when the individual stays for more than 6 months a year.
Article 4 section B defines moveable assets as:
Art 5 FRANCO BRITISH CONVENTION:
- 1. When a person was, at the time of his death, living in any part of France, no tax will be taken in Great Britain on the goods which are neither located in Great Britain or transmitted in virtue of a provision or devolution governed by the legislation in force in any part of Great Britain and it is the subject of the property for the determination of the amount or the tax rate payable in Great Britain .
- 2. When a person was, living in any part of Great Britain when they died, no tax will be taken in France on the properties that are not located there and, to determine the amount or the tax rate payable on those of the hereditary property that is taxable in France, it is subject to the property not situated in France.
- 3. Where a Contracting Party shall draw a tax on the occasion of the death of a person who, at the time of his death, was living in the territory of the other Contracting Party, it grants any exemption, abatement or relief, or any discount or reduction of rights (other than those relating to rights applied by the other party or by any other country) which would have found to apply in accordance with its legislation if the deceased had been domiciled in its territory.
Died whilst living in France:
Regulation No 650/2012 of the European Parliament and of the Council of 4 July 2012 of the jurisdiction, the applicable law, the recognition and the execution of the decisions, and the acceptance and execution of the authentic acts in terms of inheritance and the creation of a European inheritance certificate provides that the law applicable to all of a succession is that of the State in which the deceased had its habitual residence at the time of death (Article 21).
The estate is the subject of a unitary treatment, it relates to furniture and / or buildings.
Died whilst living in the United Kingdom:
Succession duties are payable in France on the property within the meaning of the Convention.
Inheritance tax payable on building and assets present in France.
This tax payable is calculated in accordance with common law, considering also French assets.
The duty reductions established for reasons of family charges are given to all successors with French nationality or any country with agreement with France.
Died whilst living abroad:
The French notary is competent when the deceased individual had real estate in France. It will establish the act of notoriety (Art 730-1 Civil Code) as well as the act of transmission for the heirs concerning the property located in France.
The family will have to draw up a declaration of succession either to the tax administration of the country of residence of the deceased, for the furniture and immovable property present in the territory of the country of residence, or according to the estate, at the service of the taxes of non-resident individuals France for the property present in France.