Inheritance between France and Luxembourg: Luxembourg law and French rule

In Luxembourg, assets inherited in the direct line (excluding extra-legal shares) and between spouses are exempt. Between siblings, the base rate is 6% (%), between uncles, aunts, nephews, and nieces it is 9% (%), for all other persons it is 15% (%), and then an additional surcharge is applied for amounts exceeding €10,000. The French list of tax treaties does not include the letter "S" for Luxembourg: it does not mention any inheritance tax treaties. On the French side, the BOFiP (Official Bulletin of Public Finances) sets out territorial rules, subject to tax treaties.

This page presents both sides of the issue. It does not cover the crediting of Luxembourg tax against French tax, assurance-vie, bank accounts, or detailed tax returns. The Luxembourg pages consulted date from 2019 to 2023: the main page of guichet.lu was modified on October 22, 2019.

Two rights in Luxembourg

The guichet.lu website distinguishes between two rights:

• Inheritance rights : they "depend on the value of the movable and immovable assets of the estate" of a person who was domiciled in Luxembourg.
• Inheritance taxes : they "are established on the value of the real estate located in Luxembourg" of a deceased person who did not have their last domicile there.

The page states: "In principle, any heir or legatee, whether resident or non-resident in Luxembourg, may be concerned." A non-resident heir, including one domiciled in France, falls under this formula.

Base rates

The rate varies depending on the degree of kinship and the value of the inherited assets. The basic rates, for the legal portion and then for the extra-legal portion, are:

Assets inherited in the direct line and between spouses are exempt. For the direct line, the extra-legal portion is not exempt: its rate can be found on the guichet.lu website.

The surcharge beyond €10,000

The basic rates are increased if the net taxable value of the share received by each beneficiary exceeds €10,000. The scale comprises 19 brackets, ranging from 1/10 for the share between €10,000 and €20,000 to 22/10 for shares exceeding €1,750,000. Some key information from the Indirect Taxation Portal, updated on 21/09/2023:

The guichet.lu website provides the formula: "applicable rate = 6 % + (6 % x 1.4) = 14.4 %" for a brother or sister and a share of €550,000, resulting in €79,200 in inheritance tax. The increase applies to the rate. It is calculated for each base rate: in the official example of a bequest of €600,000 to a brother, the legal half at 6 % becomes 14.4 % and the extra-legal half at 15 % becomes 36 %, i.e., €43,200 and €108,000 respectively.

Exemptions

The pages of the Indirect Taxation Portal (30/09/2020) and guichet.lu indicate the following exemptions:

• assets acquired in direct line, with the exception of the extra-legal share; ;
• property acquired between spouses; ;
• assets collected between partners, subject to conditions regarding the duration of the partnership declaration; ;
• an inheritance whose value, after deduction of debts, does not exceed €1,250; ;
• Properties located abroad that are part of the estate of a resident of Luxembourg: "No inheritance tax will be levied on the properties.".

The required duration for the partnership declaration is not included here: to be verified with the source.

The deceased did not live in Luxembourg

For a deceased person whose last residence was not in Luxembourg, inheritance tax is levied on "the market value of real estate located in Luxembourg on the date of death," less any debts related to that real estate. The deceased's other Luxembourg-based movable property is not subject to Luxembourg inheritance tax.

For a deceased person domiciled in Luxembourg, the assets include furniture wherever it may be located and real estate located in Luxembourg.

The deadlines

According to the Indirect Taxation Portal (September 21, 2023), the deadline for filing the declaration depends on the place of death: 6 months in the Grand Duchy of Luxembourg, 8 months in any other part of Europe, 12 months in the Americas, and 24 months in Africa or Asia. The Director of the Registration and Estates Administration may extend these deadlines. According to guichet.lu, inheritance tax must, in principle, be paid within 6 weeks of receipt of the payment request.

Is there a succession agreement?

In the list of French tax treaties (BOFiP BOI-ANNX-000306, version of 29/04/2026, agreements in force on 1 January 2026), the entry for Luxembourg only includes the abbreviations IR and IF. There are no S or D entries. The list does not mention any inheritance tax treaty for Luxembourg. The Luxembourg websites consulted do not mention any treaty to avoid double taxation on inheritance.

These observations describe pages of text. They do not prove that no text exists: the list only includes agreements in force on the date indicated.

From the French side

The BOFiP (BOI-ENR-DMTG-10-10-30, version displayed on 12/09/2012) sets out the following rules, subject to the conventions:

• If the deceased was domiciled in France, all movable or immovable property transferred is subject to tax, whether located in France or outside France.
• If the deceased was not domiciled in France, the duties are due only for assets located in France.
• An heir domiciled in France on the date of the transfer, and who has had his tax domicile there for at least six years during the last ten years, is taxed on the assets received, located in France and outside France.

For a dependent heir, the French tax brackets on form F35794 from service-public.gouv.fr (verified on 19/08/2026) provide, for a sibling, an allowance of €15,932, then 35% of the taxable share up to €24,430, and 45% of the taxable share beyond that. For a child, the allowance is €100,000 and the brackets range from 5% to 45%.

France-Luxembourg succession: a numerical example (fictitious profile)

Situation. Pierre, a single man residing in Luxembourg, with no children and deceased parents, leaves €550,000 net to his sister Claire, his sole heir: the entirety of her inheritance is her legal share, as there is no will. Claire has been a resident of France for over six years. She does not meet the exemption conditions for siblings as outlined in form F35794.

Issue. Two states can claim rights to the same inheritance: Luxembourg, the deceased's domicile, and France, the heir's domicile.

Strategy. Each rule is applied separately. Luxembourg: base rate of 6 % between brother and sister, increased by 14/10 for a share of €550,000. France: allowance of €15,932 then a scale of 35 % and 45 %.

Result.

The two amounts are calculated separately. This page does not state whether Luxembourg tax is creditable against French tax: this point is not addressed here and can be verified.

This profile is fictitious. It illustrates the mechanism and does not predict your situation.

Inheritance between France and Luxembourg: what changes depending on your situation

• The deceased's home : it determines the applicable Luxembourg law (inheritance or transfer upon death).
• The family relationship : exemption in direct line and between spouses, 6 % to 15 % basic for others.
• The amount received by each heir : the increase depends on the bracket.
• The heir's tax residence in France : residence at the date of transmission and six years out of ten.
• The nature of the goods : buildings in Luxembourg, buildings abroad, other assets.
• The imputation of a foreign tax, not addressed here.

The rule depends on your situation. No results are guaranteed.