Possible Inheritance tax exemption between Siblings
There’s an interesting update on the Lettres des Notaires de France update in March 2026.
There’s an interesting reminder on the Lettres des Notaires de France update in March 2026.
That is about the ability for siblings to benefit from a full inheritance tax exemption, in certain circumstances, as set out under 796-0 ter of the French tax code (CGI), actually introduced in 2007. It has however recently had clarification regarding marriage and PACS and Civil partners who may also be living with a sibling.
Usually, an inheritance between siblings allows a tax free allowance of just 15,932 Euros. Above that, the next 24,430 is taxed at 35%, and the rest is taxed at 45%. So, inheritance tax can be pretty steep.
To benefit from the full inhiertance tax exemption, the sibling who inherits must be:
1. single, widowed, divorced, or legally separated at the time of death;
2. over fifty years of age at the time the estate is opened, or have a disability preventing them from supporting themselves through work;
3. and have been continuously living with the deceased as their main residence for the five years preceding their death.
Proof of residence can be evidenced through joint utility bills, rental receipts in both names, witness statements, an income tax return, etc.
It is important to note that the first condition is a condition that they are not in a marital relationship with another person, confirmed recently in the Cour de Cassation arret of 28 May 2025. This explicitly confirmed that they must not be married nor in civil partnership or PACS.
Practically speaking, I don’t think I have encountered a situation where this would have been useful in my 20 plus years of doing French inheritance law, but I am certain to see loads of similar cases now!
If you’ve got a case where this might help – please let me know, I’d be very interested to assist, and facilitate the benefit from the tax exemption.
John Kitching
Director
French Law Consultancy Limited