France does not wish to sign new conventions to avoid double taxation in matters of inheritance taxes, as its domestic law provisions are sufficient.
This position is the result of a recent ministerial response dated 26 June 2025, following my question below.
Question from Ms Sophie BRIANTE GUILLEMONT (French citizen living outside France – RDSE-R) published on 29/05/2025
Ms Sophie Briante Guillemont draws the attention of the Minister for the Economy, Finance and Industrial and Digital Sovereignty to the absence of a tax treaty between France and Switzerland on inheritance.
The Franco-Swiss tax treaty of 31 December 1953 was terminated on 17 June 2024 following the Swiss Parliament’s rejection of the draft new treaty. Since that date, the absence of a tax treaty with Switzerland in matters of inheritance taxes has, in some cases, led to situations of double taxation difficult for taxpayers to accept, as they are sometimes faced with combined taxation in France and Switzerland that exceeds the value of the inherited assets. On 19 September 2023, the Swiss National Council voted on a motion to resume negotiations with France with a view to adopting a new tax treaty on the subject. She would therefore like to know whether any consideration has been given to this issue, in partnership with the Swiss tax authorities or otherwise, in order to avoid, in particular, situations of double taxation.
Published in the Senate’s Official Journal of 29/05/2025 – page 2645
Response from the Ministry of Economy, Finance and Industrial and Digital Sovereignty published on 26/06/2025
An agreement to avoid double taxation on inheritance tax, signed in Paris on 31 December 1953, bound France and Switzerland until 31 December 2014. This agreement was incompatible with the correct application of current French legislation on inheritance tax, as it created situations of non-taxation and optimisation to the detriment of French public finances. For this reason, a draft new agreement, in line with recognised international principles, was finalised in 2012 between the French and Swiss tax authorities. However, due to its rejection by the Swiss Parliament, France gave notice to terminate the 1953 agreement on 17 June 2014. This notice to terminate was published on 24 December 2014 and the agreement therefore ceased to have effect on 1 January 2015. French law now applies in full. It provides for the taxation of movable and immovable property located in France and abroad when the deceased has their tax residence in France. Similarly, transfers of movable and immovable property located in France following the death of a non-resident and made to another non-resident may be taxed in France. Furthermore, French legislation allows for the taxation of movable and immovable property located in France and abroad received by an heir who is resident in France for tax purposes and who has been resident for at least six years during the ten years preceding the transfer. At the same time, Article 784 A of the General Tax Code provides for a mechanism to ensure the elimination of double taxation on movable and immovable property located abroad, which may result from the concurrent implementation of several national measures. On the other hand, in the case of inheritances relating to property located in France, it would not be justified for France to waive taxation in favour of another State. Although France has an extensive network of agreements, as it is linked to more than 120 partners by agreements to avoid double taxation, the number of treaties covering inheritance remains very small (33). These are generally old, as France, like many other States, no longer wishes to conclude new ones. The Franco-Swiss context is therefore not exceptional.
Published in the Senate’s Official Journal of 26/06/2025 – page 3650
(1) France’s position on signing new tax treaties on inheritance.
What is France’s position on resuming negotiations with Switzerland on signing a treaty on inheritance (the last one expired on 31 December 2014)
French Government position (June 26 2025)
Reminder:
Worldwide taxation if
è the deceased is a resident of France OR
è if the heir is a resident of France and has been so for more than six years during the ten years preceding the inheritance or gift.
Corrective measure under domestic law.
France allows tax paid on movable and immovable property located abroad to be credited against tax due in France.
Government position
France does not want to abandon the taxation of assets located in France and, as a result, “France, like many other countries, does not wish to enter into an agreement to avoid double taxation in matters of inheritance.
The Franco-Swiss context is therefore not exceptional.”
Consequences:
- For immovable and movable property located abroad: Art. 784 A.
- For property located in France when taxation abroad is based on the residence of the donor/deceased or donee/heir => risk of double taxation.
- France considers that it is up to the other country to have a mechanism similar to Article 784 A of French law to avoid double taxation.
By Pascal JULIEN-SAINT-AMAND, Althémis Paris – France
