Exit tax: gift, death or transfer during the payment deferral period

When exit tax is deferred, certain events trigger the deferral. Others lead to a tax reduction or refund. Form 2074-ETD places the sale, repurchase, reimbursement, cancellation, receipt of additional payment, and a new transfer in the first category. Gifts and death are more complex: the form lists them separately, depending on the nature of the capital gain and the state where you reside.

This page follows the 2074-ETD notice relating to transfers that took place in 2025, the impots.gouv.fr information sheet (modified on 10/03/2026) and, for some points, the BOFiP in its 2013 versions.

What this page does not cover

• Who is affected by the exit tax and how is the tax calculated?. The entry thresholds are presented on the page about exit tax and tax residence. No rates are listed here.
• The forms. The role of each declaration is explained in the pages dedicated to forms and annual monitoring.
• The exact list of states in the first case of automatic stay of proceedings (§ III.A), to be read in the instructions.
• Details of the deferred capital gains affected by the death in the list of required items: the notice writes "certain" capital gains, without the page listing them.
• Other events on the list of requirements : securities received in exchange for reinvestment (2011-2013 scheme) and withdrawals from an SME innovation account are not dealt with here.

Events in a table

The notice introduces the first list with the sentence: "The tax becomes due upon the occurrence of the following events:". The second list begins: "The occurrence of one of the events listed below results, depending on the circumstances, in a tax reduction.".

Transfer, repurchase, reimbursement, cancellation

The term "transfer" refers to "the transfer for consideration (sale, contribution, and exchange)." The repurchase of your shares by the company, their cancellation, and the repayment of bonds also terminate the suspension period.

An exception exists for exchanges falling under Article 150-0 B and contributions falling under Article 150-0 B ter made while you are tax resident abroad. In these cases, the deferral ends upon the same events that terminate the deferral or postponement of taxation.

When a sale, redemption, repayment, or cancellation results in an actual capital gain "less than the unrealized capital gain declared at the time of the transfer of tax residence," or in a capital loss, the explanatory note (§ IV.C) provides for the tax liability and, in part, the tax relief or refund. The BOFiP (version of March 26, 2013, prior to the 2019 reform) states, in § 380, that "only the corresponding portion of the tax relating to the unrealized capital gain under deferral of payment is payable." It also addresses, in § 410, the sale or gift of usufruct or bare ownership rights to securities. This page does not derive any calculation rules from these texts.

Gifts: two lists, two effects

The notice addresses the gift in two places.

In the list of requirements (IV.A). The gift terminates the deferral of tax relating to the unrealized capital gain if, on the date of the gift, you are tax resident in a State or territory other than those in the first case of § III.A. It does not terminate it if you demonstrate "the absence of a primarily tax-related purpose".

In the list of relief (IV.B). Donating securities entitles you to a tax relief or refund on unrealized capital gains if you are domiciled in a country covered by the first category. Outside of these countries, taxation may also be eligible for relief, provided you can demonstrate that the gift was not made primarily to evade taxes. The list also includes deferred capital gains: those from exchanges between 1988 and 1999, and those realized from November 14, 2012 onwards, upon contribution of securities to a company controlled by the contributor, which were deferred under Article 150-0 B ter.

The "first case" in Section III.A refers to a taxpayer who initially transfers their residence "to a Member State of the European Union" or to another State or territory that has concluded an administrative assistance agreement and a tax collection assistance agreement with France, provided that this State is not a non-cooperative State within the meaning of Article 238-0 A of the French General Tax Code (CGI). The full conditions and the list of States are provided in the explanatory notes. The key point to remember: the effect of a gift depends on the State where you reside on the date of the deed.

The gift of a claim for additional price follows the same logic: it terminates the stay outside the States of the first case, unless there is proof of the absence of a primarily tax-related purpose.

A difference in wording. The 2013 BOFiP (Official Bulletin of Public Finances) ended the deferral of gift tax unless the donor demonstrates that the gift was not made "solely for the purpose of evading" tax. The explanatory note refers to "the absence of a primarily tax-related purpose." The two texts are not worded identically. This page is based on the more recent explanatory note, without definitively choosing between them.

The death

Death also appears in both lists.

• List of requirements. «"the death of the taxpayer, for the tax relating to certain capital gains previously placed under tax deferral.".
• List of tax relief. Death results in a tax relief or refund for the tax relating to unrealized capital gains, receivables arising from a price supplement clause and capital gains previously deferred.

The tax form on impots.gouv.fr makes no mention of either the gift or the death. The 2013 BOFiP (Official Bulletin of Public Finances) does not use the word "death".

This does not end the reprieve: tax relief and return

Two events trigger a tax relief: the expiry of a deadline and the return to France.

• The deadline. The tax relief period is two years if the total value of the securities is less than €2.57 million, and five years if it exceeds that amount. The instructions stipulate that the securities must still be held at the end of this period. The information sheet on impots.gouv.fr adds a caveat: no tax relief is granted in the event of "sale, repurchase-cancellation of the securities, or liquidation of the company occurring in the interim.".
• The return to France. «"The re-establishment of your tax residence in France" is included in the list of relief, for the receivables and capital gains that you still hold.

The annual follow-up: a special event

The deferral requires annual monitoring. The notice warns: "Failure to file forms no. 2074-ETS3/ETSL, no. 2042 and no. 2042 C will result in the termination of the payment deferral and the immediate payment of the deferred tax" if you have not rectified your situation within thirty days of receiving a formal notice.

The simplified version of form 2074-ETSL is only suitable if there have been "absolutely no events ending the deferral" during the year. A sale, the receipt of additional payment, and, in some cases, a gift or death require the full form. The total amount of deferred tax is entered in box 8TN of form 2042 C. Any further change of address must be reported in writing within two months.

Exit tax, gift or death during the deferral period: a numerical example (fictitious profile)

Situation. Claire left France in 2025. The total value of her securities at that date is €2,100,000. Her deferred tax liability is €200,000 (hypothetical, without a tax rate, not used in the calculation). She holds 10,000 securities.

Issue. In 2026, it sells 3,000 shares. In which section of the record does this event fall, and until what date does it expire?

Strategy. Classify the event (transfer). Identify the expiry year of the deadline.

Result. The sale is listed in the tax liability schedule (IV.A, point 1). If the actual capital gain is less than the declared unrealized capital gain, or in the event of a capital loss, the information sheet also classifies it among events with partial effect (IV.C). The total value (€2,100,000) is less than €2,570,000: the deadline is 2 years, expiring in 2027 according to the example on form 2074-ETS3 (a transfer in 2023 would have its 2-year deadline expire in 2025). A sale during this period may also disqualify the taxpayer from the tax relief, according to the information sheet's disclaimer. The amount of tax due is not calculated here: this page does not include any calculation rules based on the proportionate value of the securities sold. The figures are hypothetical and do not reflect your specific situation.

Exit tax, gift or death during the deferral period: what changes depending on your situation

• The state where you live on the day of the gift (first case or not).
• The nature of the capital gain : latent, receivable for additional payment, or deferred capital gain.
• The year of your transfer : the notice consulted refers to transfers in 2025.
• The share of securities concerned by the event.
• The filing of annual tax returns.

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