What Happens to the Inheritance If a Foreign Owner Dies in France?

TL;DR

Real estate in France is generally subject to French succession law: because of the “réserve héréditaire,” 50% of the estate is reserved for children if there is one child, 66% if there are two children, and 75% if there are three or more. However, under EU Succession Regulation 650/2012, you may choose your own national law by will; this is possible for Americans and Turks. Even so, since 2021, under Code civil art. 913, if the chosen law does not provide for forced heirship, children may claim a compensatory share from French assets.

Introduction

Most foreign buyers who purchase an apartment in Nice, Cannes, or Antibes focus on title, financing, and tax during the acquisition process; transfer on death is usually left until last. Yet in France, succession issues have very concrete consequences, especially for families with children, second-home owners, remarried couples, and owners connected to the US or Turkey.

The situation faced by an American couple with a €700,000 apartment in Cimiez is not the same as that of a Turkish family owning an apartment of the same value; but the common reality for both is this: property in France does not automatically pass on death simply “according to whatever is written at home.” The French notaire will assess the heirs, the spouse’s rights, any will, the chosen law, tax, and filing deadlines together. Especially in 2026, with EUR/USD remaining volatile, sales periods on the Riviera lengthening, and short-term rental rules in Nice continuing to stay strict, estate planning is no longer theoretical but a direct matter of wealth protection.

How do French succession rules work for a foreign owner?

The basic rule is simple: the transfer of real estate in France is handled within the French notaire system when the succession opens, and French public policy rules are decisive. For many years, the prevailing approach was that “real estate in France is necessarily governed by French law”; today, however, under EU Succession Regulation 650/2012, a person may expressly choose the law of their nationality in their will. In practice, this option can be used both by a US citizen and by a Turkish citizen.

However, it is important to emphasize that this choice is not a magic wand. The French “réserve héréditaire” system protects children. If there is one child, 50% of the estate is reserved; if there are two children, two-thirds; if there are three or more children, 75%. The remaining “quotité disponible” may be left to the spouse, another child, or a third party. Even if American or Turkish law has been chosen by will and that law allows broader freedom of disposition, under France’s 2021 reform children may still seek a compensatory claim against French assets.

For a foreign owner of an apartment in Nice, the real question is not only “which law applies?” but also “what does the applicable law ultimately distribute between the children and the spouse, what tax arises, and will a sale be necessary?” In families whose only asset is a French apartment, poor structuring can leave the surviving spouse without liquidity.

A €700,000 apartment in Nice: scenarios for a US couple and a Turkish family

Let us work through an example: imagine an apartment in Nice worth around €700,000, for example between Carré d’Or and Musiciens or near the sea in the Fabron area. As of 2026, in this price range, a well-located 2-bedroom or compact 3-room apartment is still realistic. Let us assume the owner is married and has two children.

If there is no will and the apartment is registered in the sole name of the deceased spouse, under French law the surviving spouse and the two children inherit together. The children collectively hold the reserved share. The surviving spouse’s classic options are: a usufruct right over the entire estate, or one-quarter of the full ownership. The children then hold rights over the remaining bare ownership or shares. In practice, this means the spouse may continue living in the apartment, but a sale may require acting together with the children.

There are tools to increase protection for the spouse. With a “donation entre époux,” the spouse’s range of choices can be broadened; in some cases, stronger rights can be granted up to the disposable share. A “tontine” clause inserted at the time of purchase may result in the first deceased person’s share being treated legally as if it had always belonged to the surviving spouse; however, the tax and financing impact must be reviewed separately in every case. For married couples, the “communauté universelle avec attribution intégrale” regime can also be a powerful tool, especially for older couples who have built assets together under one roof; but caution is needed if there are children from previous marriages.

For a US couple, the key point is this: with a will referring to US law, they may wish to give the surviving spouse greater freedom. But in France, children may, if the conditions are met, assert a compensatory share claim after the 2021 reform. For a Turkish family, the same logic applies: choosing Turkish law is possible, but when a French apartment is involved, the French approach to protecting children remains on the table. In other words, saying “I have a Turkish will, France will automatically apply it” is not a safe assumption.

The spouse’s rights, inheritance tax, and the 6-month deadline

In France, inheritance tax is calculated based on the person receiving the inheritance. The spouse and a PACS partner are exempt from inheritance tax; this is one of the biggest advantages for foreign families. For children, there is a €100,000 allowance per child; the remaining portion is taxed on a progressive scale, roughly between 5% and 45%. For siblings, rates generally rise into the 35%–45% range; for unrelated persons, a harsh 60% rate applies.

In the €700,000 example, if the apartment passes equally to two children, each child’s share would be about €350,000. Each child first uses the €100,000 exemption, reducing the taxable base to about €250,000. Since the applicable tax brackets are progressive, the effective rate is not a flat percentage; as a rough estimate, tens of thousands of euros in tax per child may arise. If the spouse is also an heir, no tax is due on the spouse’s own share; that is why structuring the spouse’s rights correctly can significantly reduce liquidity pressure.

The filing deadline is also critical: if death occurs in France, the inheritance tax return must generally be filed within 6 months; if death occurs abroad, the deadline in most cases is extended to 12 months. Missing these deadlines creates a risk of interest and penalties. The notaire handling the matter coordinates the process, including the “acte de notoriété,” the transfer of title, and the inheritance tax return. Notaire fees are not fixed like state taxes; they vary depending on the nature of the file, but in inheritance matters official charges, publication costs, and professional fees together can start from several thousand euros and rise further in more complex cases.

For families connected to the US, the interaction between inheritance or estate-based burdens paid in France and credits available under the US system must be reviewed separately. In practice, the goal is to mitigate double taxation; but reporting and credit mechanisms do not operate automatically. In Turkish-connected cases, Turkish inheritance and transfer tax may also come into play; the process in France does not eliminate filing obligations in Turkey. The two countries do not tax the same situation in exactly the same way, so a dual-country reporting calendar should be mapped out from the start.

SCI, bare ownership planning, and a real tax-saving example

In France, families often use an SCI (Société Civile Immobilière) as an estate planning tool. An SCI is not a miracle solution; but it does make share transfers more flexible. By gifting shares to children every 15 years, it is possible to benefit from the €100,000 exemption per person. Rather than transferring the apartment itself in one step, gradually transferring SCI shares can make planning easier, especially in markets like Nice where value appreciation is expected.

An even stronger tool is “démembrement,” meaning the bare ownership is transferred to the children while the usufruct remains with the parent. Under French tax law, pursuant to art. 669 CGI, the value of usufruct and bare ownership is determined by an age-based table. For example, if the donor parent is between 61 and 70 years old, the tax value of the usufruct is generally taken as 40% and the bare ownership as 60%. Between 71 and 80, the typical ratio is 30% usufruct / 70% bare ownership.

Now let us do a concrete calculation. Assume you leave the €700,000 apartment to two children on death, with no planning. Each child receives €350,000. After the €100,000 exemption, about €250,000 is taxable. On the progressive scale, seeing roughly €40,000–€45,000 of tax per child, or about €80,000–€90,000 in total, would not be surprising; the exact figure varies depending on other assets and prior gifts.

If the same family gifts the bare ownership to the children when one parent is 65 years old, the tax base is not the full apartment value but about 60% of it, or €420,000. For two children, this means about €210,000 per child. Each child deducts the €100,000 exemption, leaving about €110,000 taxable. This could reduce the tax to roughly €18,000–€20,000 per child, or about €36,000–€40,000 in total. In other words, with properly timed démembrement alone, savings of around €40,000–€50,000 may be possible. In addition, the parent keeps the usufruct and therefore retains use and rental income.

But there is an important warning here for US persons: while an SCI may be practical from the French perspective, it can create issues under the US tax and reporting system, including PFIC or foreign company reporting concerns. Form 8621, 5471, or other foreign asset reporting may become relevant depending on the structure of the case. For that reason, an “SCI for everyone” approach is wrong, especially for US citizens and green card holders.

What documents should heirs prepare, and how can Velmira help?

In a French succession file, the documents the notaire will usually request first are: 1) death certificate, 2) civil status and family records showing family circumstances, 3) the will if there is one and any prior inheritance agreements, 4) title deeds and purchase documents, 5) the document or agreement showing the marital property regime, 6) bank account, loan, and insurance statements, and 7) identification, address, and tax number details for the heirs. Most foreign documents require an apostille and a sworn translation.

The issue usually arises not from the existence of the documents, but from incompatibility between countries. A US death certificate is not in the same format as the civil-status chain expected by the French notaire; the translation of Turkish population registry records also requires particular care. In addition, if the apartment is rented out short-term, the registration with Nice City Hall, the concierge contract, condominium charges, and electricity-water subscriptions also become part of the file for closure or continuation planning.

At Velmira Living, we do not replace legal advice; but for owners living abroad, we fill the operational gap. In Nice and the surrounding area, we follow the file flow between the notaire, syndic, building insurer, banks, and when needed a sworn translator; we coordinate the apartment inventory, key handover, clearance, sale preparation, or transition to long-term rental. Especially if the heirs live in the US or Turkey, managing on the ground the timeline required by French institutions makes a major difference.

Conclusion: a checklist for what to do today

To avoid postponing this issue, the checklist is short but effective: first, check whether you have a will that covers France and, if so, whether the choice of your national law is clearly stated. Second, review your marital property regime; a donation entre époux, communauté universelle, or an update to your current regime can radically change spousal protection. Third, map out “who gets what?”: spouse, children, children from prior marriages, and non-common heirs.

The fourth step is to revisit any SCI structure, especially in light of US or Turkish reporting consequences. The fifth step is to evaluate assurance-vie policies; under certain conditions, they provide a very powerful framework that can offer tax advantages up to €152,500 per beneficiary. Finally, make sure all documents are organized in a format the French notaire can use.

On the Côte d'Azur, property values are high, family structures are international, and the rules are surprisingly local. Whether your apartment in Nice one day turns into an asset for your children, for your spouse, or into a difficult co-ownership between them will depend on the decisions you make today. If you wish, we can carry out a calm preliminary review with Velmira Living in Turkish and English, including coordination with the notaire.