International Estate Planning: France ↔ Canada, what founders need to know
- 15 hours ago
- 4 min read
Building a life across borders has become the norm for many founders and executives.
Living in Montreal, investing in Paris, managing operations internationally... The structure is global. But when it comes to estate planning, many still think locally.
That’s where costly mistakes happen.
Because between France and Canada, inheritance taxation doesn’t follow intuition. It follows rules — strict, territorial, and often misunderstood.
The Canadian reality: No inheritance tax… but not tax-free
Canada does not levy a direct inheritance tax. This often creates a false sense of security.
However, at death, Canadian tax law treats assets as if they were sold at fair market value. This can trigger capital gains taxation on unrealized gains.
In other words, the estate may face tax consequences — just not in the form most people expect.
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French rules: a territorial approach that still applies
France operates under a territorial and residency-based system. Even if you live in Canada, French inheritance tax may still apply if:
The deceased was a French tax resident
The assets are located in France
Certain connections to France remain
A property in Paris, shares in a French company, or even certain financial assets can fall within the scope of French taxation.
In practice, this means that tax residence at the time of death is decisive .
Three criteria that can trigger French taxation
The French tax authorities rely on several factors to determine the tax residence of the deceased or the heir.
Among them:
The deceased was residing in France at the time of death.
The inherited property is located in France (real estate, company shares, assets).
The heir himself resides in France.
If any of these criteria are met, France can claim the right to tax the inheritance.
This applies even if the deceased resided in Canada, and even if their main assets were located abroad.
Tax treaties and double taxation: what you should know
France has signed some conventions aimed at avoiding double taxation in matters of inheritance tax, but they are rare and often old.
For example, a Franco-Canadian inheritance convention historically existed, but its provisions relating to inheritance tax have been largely superseded over time, and its application has become limited.
In the absence of a convention specifically dealing with succession, France applies its internal rules , which may lead to taxation only on assets located in France or subject to its jurisdiction.
Comparative table France vs Canada
Criteria | France | Canada |
Inheritance tax | Yes | No |
Tax principle | Territory + tax residence | No direct inheritance tax |
Taxation upon death | Inheritance rights | Potential taxation of unrealized capital gains |
Taxation of heirs | Yes, depending on family ties. | Generally no |
Impact for expatriates | Assets located in France may be subject to taxation. | Inheritance received is generally not taxed. |
💡 Key takeaway: Even though Canada does not apply inheritance tax, assets located in France may still be subject to French inheritance tax.
The implications for international leaders
For an executive or founder living in Canada — whether in Montreal, Toronto or Vancouver — Canadian tax levers may seem advantageous, but estate planning must incorporate the French logic of territoriality if assets or tax ties remain with France.
This means that inherited property located abroad may still be taxable in France depending on the circumstances, and that duties may apply even if the heir does not reside in France.
Succession planning: best practices to adopt
If your life, assets, or business span France and Canada:
Check the tax residency status of the deceased and the heir at the time of death.
Accurately map the distribution of goods (France vs. abroad).
Review the applicable tax treaties and their limitations.
Consider appropriate estate planning tools (international will, life insurance, trusts where permitted).
Rigorous planning is essential to protect family assets and anticipate potential obligations to the tax authorities of the various countries involved. International estate planning is not a legal formality. It’s a strategic decision.
Comparison of France and the USA in international succession
The situation differs again if you are considering moving to the United States.
In the United States, the inheritance tax system operates according to entirely different rules, with significant federal allowances and sometimes variable state taxes, which implies a whole other level of international planning.
This article is developed in more detail in our analysis dedicated to the United States:
France-Canada succession: what our clients ask us most often
Does a Canadian resident have to pay inheritance tax in France?
Yes, if the inherited assets are located in France or if certain French tax criteria are met.
Is there an inheritance tax in Canada?
Canada generally does not levy direct inheritance tax. However, unrealized capital gains may be taxed upon death.
Is real estate in France still subject to taxation?
Yes. Real estate located in France generally remains subject to French inheritance tax.
Can a French expatriate in Canada avoid French taxes?
Taxation depends on the tax residence of the deceased, the location of assets and applicable international conventions.
Business leaders between France and Canada: plan your succession
An international life requires an international structure. And international inheritance between France and Canada should therefore never be treated as a simple local inheritance. Even if Canada does not directly tax inheritances, France may claim inheritance rights on the assets, depending on residency and location criteria.
Anticipating, structuring and coordinating with experts in international law and taxation is not only wise — it is essential to secure and optimize the transfer of your assets.
Estate planning is not about reacting — it’s about anticipating.
Is your wealth spread across multiple jurisdictions? Has your tax residence changed, or will it change?
If your assets span France and Canada, your estate planning should too.
In matters of international succession, taxation depends on specific parameters: tax residence, location of assets, applicable conventions and asset structuring. Poor planning can have significant consequences for your heirs.
Blendy supports founders and executives with cross-border structuring between France, Montreal, and North America.
👉 Do you want to secure your situation?
Reach out for a strategic review of your situation.
Sources:
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