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Real estate inheritance: How much does the state take?
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Real estate inheritance: How much does the state take?

10 January 2022

If you have inherited a house or an apartment, you will have to pay a certain number of charges to gain access to its property. Discover all the elements necessary to calculate the amount that the State deducts from a real estate inheritance in Collioure or elsewhere.

How do I calculate my inheritance tax?

The inheritance costs are the taxes that the State will levy on an inheritance , real estate or other, and which apply only on the part of real estate which belongs to it. In general, this tax is payable as soon as the heir declares his inheritance. The latter is therefore obliged to pay the inheritance tax before being able to use the property or receive the income from it.

The methods of calculating inheritance tax:

1. Calculate the taxable net assets

Net taxable assets are measured by deducting debts (liabilities) from the inventory of goods (assets). In most cases, goods are valued at their market value, which is the estimated amount in the event of sale on the current market.

Once calculated, the net taxable assets are distributed among the heirs and then represent your taxable estate asset.

2. Define the taxable portion

It is defined by subtracting the personal allowance from your taxable estate assets.

The amount of this allowance depends on several criteria. First, your relationship to the deceased will give you access to a specific amount.

You are :

  • Spouse or PACS partner: You are exempt from inheritance costs .
  • Child: the allowance is € 100,000
  • Ascendant (parent, grandparents, etc.): the allowance amounts to € 100,000
  • Grandchild: the allowance amounts to € 1,594 in the absence of any other allowance
  • Great-grandchild: the allowance amounts to € 1,594 in the absence of any other allowance
  • Brother or sister: the allowance amounts to € 15,932, except in the case of exemption between brothers and sisters.
  • Nephew or niece: the allowance amounts to € 7,967
  • Handicapped person: the allowance amounts to € 159,325 (Abatement cumulative with others.)
  • Other situation € 1,594 in the absence of any other allowance

Then, depending on your situation, the amount that the State takes on a real estate inheritance will be subject to a tax schedule depending on the amount.

3. Calculate the share of each heir

The calculation of the part of the inheritance which is due to you varies according to your relationship with the deceased.

Here is the progressive scale of the amounts of inheritance tax in direct line:

  • Taxable share Less than € 8,072: 5%
  • Between € 8,072 and € 12,109: 10%
  • Included between € 12,109 and € 15,932: 15%
  • Between € 15,932 and € 552,324: 20%
  • Between € 552,324 and € 902,838: 30%
  • Between € 902,838 and € 1,805,677: 40%
  • Over € 1,805,677: 45%

For brothers and sisters:

  • Taxable portion less than € 24,430: 35%
  • Over € 24,430: 45%

For parents up to the 4th degree (inclusive), the single rate is 55%, and for other heirs the single rate is 60%.

How to be exempt from inheritance tax?

There are several cases for which an exemption is possible.

Beneficiary exemptions:

If you are the surviving spouse or PACS partner, you are exempt from paying inheritance costs .

If you are a brother or sister of the deceased, you will be exempt under three conditions:

  1. You are single, widowed, divorced or separated at the time of death
  2. You are over 50 or have a disability that does not allow you to work
  3. You have been permanently domiciled with the deceased for the 5 years preceding the death

Exemptions related to the nature of the goods transferred

When you inherit real estate, there are three specific cases for which you can be totally or partially exempt from the payment of duties:

  • The monument is classified historical: total exemption
  • The accommodation was acquired new between June 1, 1993 and December 31, 1994, or between August 1, 1995 and December 31, 1995: partial exemption
  • The apartment building and the garages were acquired between August 1, 1995 and December 31, 1996: partial exemption

Note that for the last two situations, the exemption only applies to the first transmission of the property.

How to pay your inheritance tax?

The payment of your rights will be done at the same time as the filing of your declaration of inheritance and various means are available:

  • In cash (within the limit of € 300);
  • By cheque ;
  • By handing over works of art, books or collector's items of exceptional interest, after ministerial approval (for rights over € 10,000);
  • By handing over buildings located in the intervention zones of the coastal and lake shore conservatory, after ministerial approval (for rights due in excess of € 10,000);
  • By handing over woods and forests or natural spaces that can be incorporated into the State forest domain.

You can also benefit from deferred or fractional financing by paying your rights with a maximum payment period of one year.

To gain access to property received as an inheritance, you will have to pay a certain part of it to the State. Be careful to add additional costs such as the notary's fees to these inheritance taxes.

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