Steuerpolitik: Frankreichs Parteien streiten über die Erbschaftsteuer

In discussions about the 2027 French budget, possible changes to inheritance and gift taxation are being debated. The government aims to make it easier for older people to pass on assets to their heirs. However, the proposals that will prevail in the Parliament are still uncertain, as reaching a majority in France is challenging.

The government remains committed to keeping inheritance from family businesses tax-free at 75 percent. The Council of State proposed reducing this tax break, citing its significant burden on the French state budget. The Greens and the Left want to significantly reduce these benefits. The Greens intend to lower the 75 percent exemption to 50 percent.

Additionally, they propose taxing company value growth, i.e., the un-realized increase in value until the inheritance, over four million euros. The Socialists and Raphaël Glucksmann, the presidential candidate of moderate left, propose taxing gains over two million euros. Currently, company value growth is not taxed in French inheritances; the current market value at the beneficiary's death serves as the new acquisition value for the heirs.

Various positions exist in France regarding inheritance taxation: Should it be taxed more heavily, or should it be eased to help the younger generation? The French government chose the latter path. It proposes two measures: raising the gift tax-free amount from 31,865 euros to 50,000 euros, applicable not only to children but also to grandchildren, great-grandchildren, nieces, and nephews, and introducing a temporary special rule for gifts in the first six months of 2027.

Parents could then gift up to 150,000 euros to children and up to 81,865 euros to grandchildren. Furthermore, parents could transfer up to 100,000 euros tax-free to each child every 15 years. Inheritance allows parents to gift up to 100,000 euros to each child. Around 85 percent of French inheritances fall below this threshold. Other parties, such as the Greens and the Left, advocate for higher inheritance taxes on large inheritances and preferential treatment for smaller ones.

The Greens propose adding a 10 percent surcharge to inheritance taxes for heirs with more than four million euros in taxable value. For inheritances over 13 million euros, the surcharge would increase by another 10 percent points. Children benefit from a progressive inheritance tax rate in France: 30 percent on the taxable inheritance value of over 552,324 euros, 40 percent on over 902,838 euros, and 45 percent on over 1,805,677 euros.

Higher rates apply to more distant relatives and non-relatives. The extreme left, led by Jean-Luc Mélenchon, proposes a 12-million-euro cap on inheritances, with the top tax rate increasing to 50 percent. He claims this would only affect the richest 0.1 percent of the population. In 2025, the French state collected 16.1 billion euros in inheritance taxes, according to the Finance Ministry.