France & Portugal: France ↔ Portugal: A tax-light corridor with hidden legal complexity
Neither France nor Portugal levies inheritance tax in the way most people fear. But the Art 750 ter beneficiary trap, the absence of a bilateral treaty, and the interaction of two forced heirship systems create real risks for families straddling these two countries.
France ↔ Portugal: A tax-light corridor with hidden legal complexity
Neither France nor Portugal levies inheritance tax in the way most people fear. But the succession law traps between these two countries are real — and the absence of a bilateral treaty leaves them unresolved.
Reading time: 7 minutes · Last reviewed: 2025
Low tax — but the succession law picture is more complex
Portugal has no general inheritance tax for direct family members. France has substantial allowances for children and between spouses, and the forced heirship system gives children guaranteed minimum shares. On paper, this looks like a relatively benign corridor for inheritance planning. In practice, the picture is more complicated.
The complexity arises from the interaction of French forced heirship with Portuguese succession law, the absence of any bilateral treaty, the Art 750 ter para 3 trap that can pull worldwide assets into French IHT scope via beneficiary residence, and the sharp divergence between how the two countries approach trusts and holding structures.
France and Portugal do not have an inheritance-specific double taxation treaty. This means there is no agreed framework for allocating taxing rights between the two countries on the same estate. French domestic rules — particularly Art 750 ter CGI — apply in full, and Portuguese stamp duty rules apply independently. Where both countries have a claim on the same assets, unilateral relief mechanisms in each country may partially address the overlap, but the position must be analysed asset by asset.
What every France-Portugal family needs to understand
Art 750 ter para 3: the French beneficiary trap
If the deceased was not French-domiciled but a beneficiary has been resident in France for six or more of the preceding ten years, French IHT applies to the worldwide assets received by that beneficiary — not just French assets. A French-resident child of a Portugal-based parent therefore brings French droits de succession into scope on their entire inheritance share, wherever those assets are located.
Portuguese forced heirship applies to residents
A person habitually resident in Portugal at death faces Portuguese forced heirship on their worldwide estate — reserving a mandatory share for spouse and direct descendants. French nationals resident in Portugal can elect French succession law under Brussels IV to override this, but the election must be made in a will during their lifetime. Without it, Portuguese intestacy and forced heirship apply by default.
French trust regime applies regardless of location
France’s punitive trust reporting regime (Art 990J and Art 792-0 bis CGI) applies to any trust with a French-resident beneficiary, a French-resident settlor, or French-situs assets — regardless of where the trust is established. A Portuguese discretionary trust with French-resident beneficiaries is potentially within scope of French trust reporting obligations and the 1.5% annual levy on trust assets.
The two forced heirship systems can conflict
Both France and Portugal have mandatory reserved shares for children. If a family straddles both jurisdictions — with assets in France and Portugal and family members resident in each — it is possible for both forced heirship systems to claim jurisdiction over the same estate. Resolving the conflict requires careful analysis of Brussels IV elections, applicable law determinations, and treaty positions.
When French IHT reaches into Portugal
A French-domiciled person dying with Portuguese property faces French droits de succession on their worldwide estate — including Portuguese assets. Art 750 ter para 1 applies: French domicile at death equals worldwide scope. Portugal would separately levy 10% stamp duty on the Portuguese property if it passes to non-direct family, but spouses and children are exempt from the Portuguese charge.
A non-French-domiciled person dying in Portugal with French assets in the estate — a Paris apartment inherited through the family, for example — faces French IHT on those French assets under Art 750 ter para 2. Portugal levies stamp duty on its own assets. No treaty coordinates the two claims.
The most complex scenario is where a Portugal-resident parent (non-French-domiciled) has French-resident children. Under Art 750 ter para 3, the children’s worldwide inheritance shares are in scope for French droits de succession — meaning the modest Portuguese estate is pulled into the French tax system through the children’s residence status alone.
Many French nationals relocated to Portugal under the NHR regime to benefit from favourable income tax treatment. The NHR regime has no bearing on succession or inheritance tax. A French national resident in Portugal who has children in France faces Art 750 ter para 3 on those children’s inheritance shares regardless of NHR status. This is frequently overlooked in NHR planning discussions, which tend to focus on income and wealth tax rather than succession.
Coordinating succession law across the two countries
Both France and Portugal are signatories to Brussels IV. This allows a person to choose the succession law of their nationality — overriding local forced heirship rules — by making an election in their will. A French national resident in Portugal can elect French law; a Portuguese national resident in France can elect Portuguese law.
The practical implication is that a two-will approach is recommended for most families straddling these two countries: a Portuguese will covering Portuguese assets (with a Brussels IV election if appropriate) coordinated with arrangements for French assets. Each will must be carefully drafted to avoid one revoking the other. The election affects only succession law — it does not affect the tax treatment of either country’s assets.
Planning triggers for France-Portugal families
Where you need a specialist
This guide explains the principles. It cannot determine whether a specific beneficiary’s French residency period has crossed the six-of-ten-years threshold, how French and Portuguese succession law interact in a specific family structure, whether a trust arrangement triggers French reporting obligations, how to coordinate Brussels IV elections across two wills without one revoking the other, or how the absence of a bilateral treaty affects unilateral relief in practice.
France-Portugal succession requires a specialist with deep knowledge of French succession law — particularly Art 750 ter — as well as Portuguese succession and stamp duty. These are distinct disciplines and not all cross-border advisers have expertise in both.
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Frequently Asked Questions — France & Portugal Inheritance
Is there a France–Portugal inheritance tax treaty?
Can Article 750 ter paragraph 3 apply to Portuguese assets in a French-Portuguese family?
How do French and Portuguese forced heirship rules interact?
Does the French trust regime create issues for French nationals in Portugal?
What should I do first if my family spans France and Portugal?
These FAQs are for general educational purposes only. They do not constitute legal, tax or financial advice. Laws change and individual circumstances vary significantly. Always consult a qualified cross-border estate specialist before making decisions.
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This guide explains the principles. The simulator helps you understand how they apply to your residency, assets, and family structure.