Portuguese families in France: inheritance tax, dual forced heirship, and no DTA
Knowledge Article · Inheritance & Estate Planning
Portuguese families in France: 1.5 million people, the EU’s most missed estate corridor
Portugal is France’s single largest EU bilateral diaspora. Most of the 1.5 million Portuguese nationals in France face French succession tax on their worldwide estate, dual forced heirship, and no France/Portugal estate treaty — and almost none have a coordinated estate plan.
Over 1.5 million Portuguese nationals live in France — concentrated in Paris, Lyon, and the Île-de-France. This is simultaneously the largest intra-EU bilateral diaspora and the most systematically unplanned succession corridor within the European Union. Two notaires (one in each country, who have never spoken) handling separate asset pools is the most common planning structure. It is not adequate.
Principle 01 — French succession tax: worldwide scope as French fiscal domiciliary
A Portuguese national who is habitually resident in France is typically a French fiscal domiciliary under art.4B CGI. French succession tax applies to their worldwide estate — including Portuguese property, Portuguese bank accounts, and global assets — under art.750 ter §1.
French succession tax rates for direct family: 5% on amounts up to €8,072; graduating to 20% on amounts up to €902,838; 30% up to €1,805,677; 40% up to €1,805,677; 45% above. For siblings: 35–45%. For others: up to 60%.
Principle 02 — Art.750 ter §2: French-resident heirs taxed on worldwide assets received
French-Portuguese families typically have French-resident adult children — second-generation Portuguese who were born or raised in France. After 6 years of French residence in the prior 10 years, these children face French succession tax on all worldwide assets they receive as heirs, independently of the estate-side French charge.
The result: French succession tax can apply twice on the same assets through two independent mechanisms — once at the estate level (deceased as French fiscal domiciliary under §1) and once at the heir level (French-resident children under §2). These are separate charges assessed on different taxpayers. Credit between them is incomplete where the same assets are caught by both.
Principle 03 — Portuguese Imposto do Selo and succession law
Portuguese Imposto do Selo (Stamp Duty) applies to Portuguese-situs assets at the time of inheritance. Key points:
- Exempt heirs: Spouse, descendants (children, grandchildren), and ascendants (parents, grandparents) are exempt from Imposto do Selo on inherited assets since 2009. This is a significant relief — most direct-line Portuguese-French family transfers avoid Portuguese Imposto do Selo entirely.
- Non-exempt heirs: Siblings, cousins, and unrelated beneficiaries face Imposto do Selo at 10% on Portuguese-situs assets. This applies regardless of where the beneficiary lives.
- Portuguese succession law: Portuguese law applies to Portuguese-situs assets under lex situs. The Portuguese quota indisponível (forced share) reserves a minimum of 50% for legitimate heirs (spouse and children together, with minimum individual shares). A French will attempting to distribute Portuguese property contrary to this will be partially unenforceable in Portuguese proceedings.
Principle 04 — Dual forced heirship: French réserve + Portuguese quota
Both French and Portuguese forced heirship systems apply in this corridor:
| French réserve héréditaire | Portuguese quota indisponível | |
|---|---|---|
| Applies to | French-situs assets (lex situs) + movables if French law governs | Portuguese-situs assets (lex situs) + movables if Portuguese law governs |
| Reserved share (2 children) | 2/3 of estate | 2/3 of estate (spouse + 2 children together) |
| Freely distributable | 1/3 | 1/3 |
| Override by will? | No for real estate; art.22 election for movables | No for real estate; art.22 election for movables |
The EU Succession Regulation art.22 election of one country’s law replaces the other country’s forced heirship for movable assets — but lex situs means French real estate follows French law and Portuguese real estate follows Portuguese law regardless of any election.
Principle 05 — No France/Portugal bilateral estate DTA
There is no bilateral inheritance or estate tax treaty between France and Portugal. All relief from double taxation is via unilateral domestic credit only: France’s art.784A CGI (credit for foreign tax on the same property at the same event) and Portugal’s domestic credit provisions. The taxpayer mismatch between French estate-side §1 and heir-side §2 charges means credit between the two French mechanisms is itself incomplete. No structured bilateral relief exists for the overall corridor.
The typical planning reality for Portuguese-French families: a Portuguese notaire administers the Portuguese assets following Portuguese succession law. A French notaire administers the French assets following French succession law. Neither has assessed the worldwide French succession tax charge on the Portuguese assets. Neither has considered art.750 ter §2 for the French-resident children. Neither has made an EU Succession Reg art.22 election in the French will. Neither has spoken to the other. This is the planning state of 1.5 million families in the most important bilateral corridor in the EU.
Planning triggers — you should be reviewing this if…
- You are a Portuguese national habitually resident in France with Portuguese property
- You have French-resident adult children who have 6+ years of French residence
- Your French will does not include an EU Succession Reg art.22 election of Portuguese law (or vice versa)
- Your Portuguese and French estate plans have never been coordinated between advisers in both countries
- You are a second-generation Portuguese-French who will inherit from Portuguese-resident parents
What this article cannot tell you
- Whether you are a French fiscal domiciliary — requires facts-and-circumstances analysis under art.4B CGI
- Whether art.750 ter §2 applies to your French-resident children — requires reviewing their 10-year residence history
- Whether Imposto do Selo applies to your specific Portuguese heirs — depends on kinship relationship
- How to coordinate the EU Succession Reg art.22 election with your Portuguese succession plan
Frequently Asked Questions
Is there inheritance tax in France for Portuguese nationals?
Yes — a Portuguese national habitually resident in France is typically a French fiscal domiciliary, and French succession tax applies to their worldwide estate including Portuguese property and accounts. Additionally, French-resident heirs (second-generation Portuguese-French with 6+ years of French residence) independently face French succession tax on all worldwide assets received under art.750 ter §2. France/Portugal have no bilateral estate tax treaty — all relief is via unilateral credit only.
Is there inheritance tax in Portugal?
Portugal abolished inheritance tax (imposto sobre as sucessoes) in 2004. For direct-line heirs (spouse, children, grandchildren, parents, grandparents), Imposto do Selo (Stamp Duty) on inherited assets has been exempt since 2009. Non-direct-line heirs (siblings, cousins, unrelated beneficiaries) face Imposto do Selo at 10% on Portuguese-situs assets. Portuguese real estate and assets always follow Portuguese succession law under lex situs, including the quota indisponivel forced share for legitimate heirs.
Do Portuguese nationals in France pay French inheritance tax on Portuguese property?
Yes — as French fiscal domiciliaries (habitual residence in France), Portuguese nationals face French succession tax on their worldwide estate including Portuguese property, under art.750 ter §1. There is no France/Portugal estate tax treaty to provide structured relief. Unilateral credit under art.784A CGI may reduce double exposure on the same assets, but taxpayer mismatches and different tax types limit the credit’s effectiveness.
What is the EU Succession Regulation art.22 election and should Portuguese nationals in France use it?
EU Succession Regulation art.22 allows EU nationals to elect the succession law of their nationality to govern their estate. A Portuguese national in France can elect Portuguese succession law in their will — removing French forced heirship (réserve héréditaire) for movable assets and instead applying Portuguese quota indisponível rules. This is significant because Portuguese forced heirship rules differ from French ones. Critical limitation: lex situs means French real estate follows French law and Portuguese real estate follows Portuguese law regardless of any art.22 election. Specialist advice is needed to determine which election is more advantageous for your specific family and asset structure.
Does French inheritance tax apply to Portuguese property when the heirs live in France?
Yes — through two mechanisms. First, if the deceased was a French fiscal domiciliary, French succession tax applies to worldwide assets including Portuguese property under art.750 ter §1. Second, and independently, if French-resident heirs have been in France for 6 of the prior 10 years, French succession tax additionally applies to all worldwide assets they receive under art.750 ter §2 — including Portuguese property — regardless of where the deceased was domiciled.
FAQs for general educational purposes only. Not legal, tax or financial advice.
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