01: Territoriality

Sont soumis aux droits de mutation à titre gratuit :

1° Movable and immovable property situated in France or outside France, and in particular public funds, interest shares, property or rights making up a trust defined in article 792-0 bis and income capitalised therein, debts and generally all French or foreign transferable securities of any kind whatsoever, where the donor or the deceased is domiciled for tax purposes in France within the meaning of Article 4 B;

2° Movable and immovable property, whether owned directly or indirectly, located in France, and in particular French public funds, interest shares, property or rights making up a trust defined in article 792-0 bis and income capitalised thereon, French debts and transferable securities, where the donor or deceased is not domiciled for tax purposes in France within the meaning of the aforementioned article.

For the application of the first paragraph, any real estate or right to real estate is deemed to be owned indirectly when it belongs to legal entities or bodies of which the donor or the deceased, alone or jointly with his spouse, their ascendants or descendants or their brothers and sisters, holds more than half of the shares, units or rights, directly or through a chain of holdings, within the meaning of article 990 D, regardless of the number of legal entities or interposed bodies. The value of indirectly owned real estate or real estate rights is determined by the proportion of the value of these assets or of the shares, units or rights representing such assets in the total assets of the bodies or legal entities whose shares, units or rights are directly held by the donor or the deceased.

Claims against a debtor who is established in France or who has his or her tax domicile there within the meaning of the same article, as well as securities issued by the French State, a French public law legal entity or a company which has its registered office or the seat of its effective management in France, are considered as French, regardless of the composition of its assets.

Shares and units in unlisted companies or legal entities whose registered office is located outside France and whose assets consist mainly of real estate or real estate rights located on French territory are also considered as French, in proportion to the value of these assets in relation to the company's total assets.

For the application of the second and fourth paragraphs, real estate located on French territory allocated by a legal person, organisation or company to its own industrial, commercial or agricultural operation or to the exercise of a non-commercial profession is not taken into consideration.

3° Movable and immovable property situated in France or outside France, and in particular public funds, interest shares, property or rights making up a trust defined in article 792-0 bis and income capitalised therein, debts and generally all French or foreign transferable securities of any kind whatsoever, received by the heir, donee, legatee or beneficiary of a trust defined in the same article 792-0 bis who is domiciled for tax purposes in France within the meaning of article 4 B. However, this provision only applies where the heir, donee or beneficiary of a trust has been domiciled for tax purposes in France for at least six years in the ten years prior to the year in which he receives the assets.