Gift tax on gifts outside France from non-residents

Banking & Financial Tax & Social charges
1

I have been in France for 5 years and my parents are non-French. They wish to gift me more than €100,000. It’s my understanding that if you have been a French tax resident for less than 6 years our of the last 10 years, you don’t need to pay the gift tax in France on gifts that are located outside France from non-French donors.
Has anyone gone through this process? Did you declare the amounts still? Was there any issues bringing the money into your French bank account?

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2

I suggest you ask your local (French) Tax officers about such a large gift…

I believe there is a place on the annual Worldwide Income Declaration form, where one can list an unusual income/ lump of money … with an appropriate explanation of where it’s come from… but the Tax officers will advise you correctly.

3

Curious, would this be something to avoid same kind of sum appearing as part of an inheritance, I wonder

4

Umm may take a while to clear coming from another country and French banks are suspicious of large transactions because of money laundering laws

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5

The country of origin of the funds might also need to be clarified due to the AML legislation in effect. Assuming the transfer goes ahead, before the bank credits the amount to your account, you may be asked to justify the origin of the funds to your bank, and the bank might notify TracFin as a precaution.

6

As under 6 years and received from a non resident there isn’t any liability.

You do have to declare still it within 1 month of the gift… you can do it via impot login or form.

Check out the link - I haven’t declared this myself but I have had a few clients declare via notaire as well.

Je suis non-résident, comment déclarer un don manuel (dons d'argent, d’actions, de bijoux, de meubles…) ? | impots.gouv.fr.

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7

From Australia where there is no gift tax from family

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8

Yeah no problem there…

9

Should I speak to the local tax office or should I speak to a lawyer? I spoke to a notaire but they had no idea and refered me to a lawyer…

10

I would message the tax office using your online portal including all the information… it’s from Australia and you have been here under 6 years and what form you need to submit or instructions how to complete this online. Your understanding that there is no liability and the link above. Then you won’t need any of the professional services.

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11

Thanks Dave. I’ll do that

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12

Good luck!