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France taxes wealth transfers heavily where there is no consideration (gifts or inheritance). Such transfers are taxable at 60% where the beneficiary has no family relationship with the deceased or the donor, and at up to 45% between lineal ascendants and descendants where the value exceeds €1,805,677.

Transfers for value are taxed at a proportional rate, typically 30% (the flat tax), plus the Exceptional Contribution on High Incomes (Contribution Exceptionnelle sur les Hauts Revenus) of 3% up to €500,000 and 4% above that (doubled in the case of a couple).

There are various ways to reduce the tax costs of a transfer, whether for value or for no consideration. For example, assets can be transferred by way of gift (donation-cession) or contribution (apport-cession), through “Dutreil” agreements, intergenerational gifts among presumptive heirs (donation-partage), or by setting up a holding company abroad.

Bornhauser has been advising on such schemes since it was formed and can help you keep your tax costs to a minimum by passing on your wealth during your lifetime, either by way of a gift to their heirs or by transfer.