Does France Tax Gifts On A Worldwide Basis?

France takes a markedly different approach to gift taxation compared with many other countries. In this episode, we explain when France taxes gifts on a worldwide basis, what triggers that exposure, and why donor residence is the key factor.

🔎 What You’ll Learn in This Episode:

1️⃣ The Core Rule: Donor’s Tax Residence

France applies worldwide gift taxation when the donor is fiscally domiciled in France.

Under Article 750 ter of the Code général des impôts, once a person is considered a French tax resident, all gifts they make may fall within the French gift tax net.

➡️ This applies regardless of:

• Where the gifted assets are located

• Where the recipient lives

2️⃣ What “Worldwide” Means in Practice

If the donor is resident in France:

• Gifts of French assets → taxable

• Gifts of foreign assets → potentially taxable

• Gifts to French or non-French recipients → potentially taxable

This makes France one of the more expansive systems in terms of gift tax scope.

3️⃣ Why This Is a Key Feature of the French System

Unlike territorial systems that focus on asset location or recipient residence, France places primary weight on the donor’s fiscal domicile.

As a result, donor residence planning is often decisive in cross-border family wealth transfers.

4️⃣ Practical Takeaway

For gifts connected to France:

• French-resident donor → worldwide taxation risk

• Non-resident donor → different (and more limited) rules apply

Correctly determining the donor’s tax residence is therefore the first and most critical step in analysing French gift tax exposure.

This episode highlights why France stands apart in gift taxation—and why international families must treat donor residence as a central planning variable.