International Inheritance France ↔ Canada: What every business owner should know
- Mar 19
- 5 min read
Updated: Apr 9
Many international business owners assume that inherited property located abroad automatically falls outside the scope of French inheritance tax.
When you are planning a move to Canada, or already living there, that assumption can feel even more intuitive, especially since Canada does not levy an inheritance tax.
But the tax reality is often more complex than that. And for those building cross-border lives and businesses, a misunderstanding can become expensive.
Even without an inheritance tax in Canada, France may still tax the estate
Canada has not imposed an inheritance tax since the 1970s, and beneficiaries are generally not required to pay tax simply because they receive an inheritance, whether the assets are movable or immovable, except on any income later generated by those assets. In other words, wealth can usually be transferred without a specific Canadian inheritance tax.
That often creates the impression that an inheritance is “protected” simply because the country of residence, or the country where the inheritance is received, does not impose inheritance tax.
That is not necessarily true when France is involved.
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French Rules: territoriality and connecting factors
French inheritance tax rules rely on strict criteria, especially those set out in Article 750 ter of the French Tax Code, along with applicable international tax treaties.
Under the principle of territoriality:
If the deceased was a French tax resident at the time of death, their worldwide estate may be subject to French inheritance tax.
If the deceased was not a French tax resident, only the assets located in France are, in principle, taxable by the French tax authorities.
In practice, this means that tax residency at the time of death is a decisive factor.
Three triggers that may lead to French taxation
Les autorités fiscales françaises s'appuient sur plusieurs facteurs pour déterminer la résidence fiscale du défunt ou de l'héritier.
These include:
The deceased was living in France at the time of death.
The inherited asset is located in France, whether that means real estate, company shares, or other assets.
The beneficiary themselves lives in France.
If just one of these conditions is met, France may assert taxation rights over the inheritance, even if the person is established in Canada, and even if most of the estate is located abroad.
Tax treaties and double taxation: what you need to know
France has entered into certain treaties intended to avoid double taxation on inheritances, but these agreements are rare and often dated.
Historically, a France–Canada treaty dealing with inheritance matters did exist. However, its provisions relating to inheritance and transfer taxes have gradually lost practical relevance over time, and its application is now limited.
Where no treaty specifically governs inheritance, France applies its domestic rules. That can lead to taxation of assets located in France, or otherwise falling within French tax jurisdiction.
France vs. Canada: key differences at a glance
Criteria | France | Canada |
Inheritance tax | Yes | No |
Tax principle | Territoriality + tax residency | No direct inheritance tax |
Taxation at death | Inheritance tax applies | Unrealized capital gains may be taxed |
Taxation of beneficiaries | Yes, depending on family relationship | Generally no |
Impact for expatriates | Assets located in France may remain taxable | Inherited assets are generally not taxed |
💡Key takeaway: Even though Canada does not levy an inheritance tax, assets located in France may still remain subject to French inheritance tax.
What this means for International business owners
For a founder or executive living in Canada, whether in Montreal, Toronto, or Vancouver, Canada’s tax framework may appear attractive at first glance. But estate planning still needs to account for the French territorial tax system whenever French assets or French tax ties remain in place.
In practical terms, that means an inherited asset located abroad may still be taxable in France depending on the circumstances, and inheritance tax can still apply even if the beneficiary does not live in France.
Estate planning: what to do before it is too late
To avoid costly surprises, it is essential to:
Confirm the tax residency status of both the deceased and the beneficiary at the time of death.
Map out the exact location of the assets, in France and abroad.
Review the applicable tax treaties and understand their limitations.
Consider appropriate wealth-planning tools, such as an international will, life insurance, or trust structures where permitted.
Careful planning is essential to protect family wealth and anticipate possible obligations toward the tax authorities in each relevant country.
France ↔ USA: a different cross-border inheritance framework
The picture changes again if you are considering a move to the United States.
In the US, inheritance and estate taxation operate under a completely different set of rules, with significant federal exemptions and, in some cases, state-level estate or inheritance taxes. That creates a very different planning landscape for international families and business owners.
This topic is explored in greater depth in our dedicated US-focused analysis:
France–Canada Inheritance: the questions business owners ask most often
Does a Canadian resident have to pay French inheritance tax?
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 impose a direct tax on inherited wealth. However, unrealized capital gains may be taxed at death.
Does real estate located in France remain taxable?
Yes. Real estate located in France generally remains subject to French inheritance tax.
Can a French expatriate in Canada avoid French tax?
That depends on the tax residency of the deceased, the location of the assets, and the applicable international treaties.
Business owners between France and Canada: plan the transfer before it becomes a problem
A cross-border inheritance involving France and Canada should never be treated like a simple domestic estate matter. Even though Canada does not directly tax inheritances, France may still claim inheritance tax rights over certain assets based on residency and location criteria.
Planning ahead, structuring properly, and coordinating with international tax and legal advisors is not just smart. It is essential if you want to protect and optimize the transfer of family wealth.
Is your wealth spread across more than one jurisdiction? Has your tax residency changed, or is it about to?
In international inheritance matters, the tax outcome depends on specific variables: tax residency, asset location, applicable treaties, and the structure of the estate itself.
Poor planning can create significant consequences for your heirs.
Blendy supports business owners operating between France and Canada with international tax and wealth-structuring guidance.
👉 Want to secure your situation?
Get in touch with our team for a strategic review.
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