You have inherited a property located in France and you reside abroad? The succession is governed by French law for the real estate (the law of the place where the property is located), and the subsequent sale follows the rules applicable to non-residents. This article covers the two key stages: the succession itself, and the sale of the inherited property.
Step 1: French Law Governs Succession of the Property
European Succession Regulation 650/2012 of 4 July 2012 establishes that the law applicable to the succession is in principle that of the last domicile of the deceased — unless the national law option is chosen. However, for real estate located in France, French law of the place where the property is situated applies in practice for inheritance tax and registration purposes, even if the deceased resided abroad.
In practice: a heir residing in the United States who inherits a Parisian apartment pays French inheritance taxes and receives the property according to the shares provided for by French law.
Inheritance Tax: the French Scale for French Property
Inheritance taxes are calculated according to the French scale, based on the family relationship between the deceased and the heir. For direct-line heirs (children), the personal allowance is 100,000 EUR per parent and per child, and the rate ranges from 5% to 45%. For other beneficiaries, allowances are lower and rates are higher.
The heir’s tax residence does not alter this calculation. A child residing in Dubai pays the same inheritance taxes as a child residing in France for the same French property.
Tax Conventions and Double Succession Taxation
Several bilateral tax conventions specific to successions exist, notably the France-USA inheritance tax convention (1978). They organise the elimination of double succession taxation, but do not cover all countries. For countries without a specific convention (such as the United Arab Emirates), French inheritance taxes may be added to any taxes levied in the heir’s country of residence.
An important note: the France-USA succession convention provides for a US tax credit against French inheritance taxes, but the mechanism is complex and warrants advice from a specialist tax lawyer.
Step 2: Selling the Inherited Property
Once the succession is settled, the heir becomes the owner and may sell. For the capital gains calculation at the time of sale, the acquisition price used is not what the deceased originally paid, but the value of the property recorded in the succession declaration (market value at the date of death).
This feature often has a favourable effect: if the succession value is high (close to the market price at the time of death), the taxable capital gain upon resale is mechanically reduced. The acquisition date retained, on the other hand, is that of the death — the holding period for tax relief starts from the date the succession opens.
Case Study: Apartment Inherited in 2018, Sold in 2026
A heir residing in London inherits a Parisian apartment in 2018, valued at 600,000 EUR in the succession declaration. He sells it for 720,000 EUR in 2026.
- Inheritance taxes actually paid (direct line, after 100,000 EUR allowance, 5% to 45% scale): approximately 98,000 EUR.
- Notary fees and succession declaration costs: approximately 15,000 EUR (varies by notary).
- Flat-rate works allowance of 15% (holding period over 5 years, applicable even for inherited properties): 90,000 EUR.
- Adjusted acquisition price: 600,000 + 98,000 + 15,000 + 90,000 = 803,000 EUR.
- Gross capital gain: 720,000 – 803,000 = -83,000 EUR (a loss — no capital gains tax due).
A typical case: the high succession value created a buffer that absorbs the modest appreciation over the following eight years. The sale remains fiscally neutral on the capital gains side, even though appointing an accredited tax representative remains mandatory to formally calculate the result.
Joint Inheritance (Indivision): A Common Situation
When multiple heirs receive a property in joint ownership (indivision), the sale requires the consent of all co-owners (except in specific licitation cases). Each non-resident co-owner must individually have fiscal representation for hteir share. Fees are generally split proportionally to each heir’s share.
If some heirs are French tax residents, only the non-residents are subject to the fiscal representation obligation — which applies to their share of the capital gain.
ACCREDITAX’s Role in a Sale Following Succession
Our involvement is particularly valuable in two configurations: multi-country joint inheritances (heirs residing in different jurisdictions), where coordination becomes complex, and sales close to the loss threshold, where a careful reading of the succession value and deductible costs can tip the calculation. In all cases, putting accredited tax representatives in competition reduces fees.
FAQ — International Succession
What value is used as the acquisition price for capital gains tax?
The market value of the property recorded in the succession declaration at the date of death. This value serves as the reference for any subsequent capital gains calculation upon resale.
Does the holding period start at death or at the original purchase date?
At death. The holding period for progressive tax relief runs from the date the succession opens, not from the date of the original purchase by the deceased.
Is a tax representative required for the succession declaration itself?
No. The accredited tax representative is required for the sale of the property, not for the succession. For the succession, you work with the notary handling the settlement, who may appoint a representative if you reside abroad.