As debate continues over France’s Finance Bill (PLF) for 2025, the National Assembly has moved forward with several amendments focused on reducing inheritance and donation taxes.
Although it remains uncertain if these transmission rules will undergo further change – especially amid a potential invocation of Article 49-3 to bypass parliamentary votes – lawmakers have shown a clear intent to ease tax burdens on family transfers. Notably, on 24th October, deputies approved tax relief measures for direct-line inheritances and donations, as well as a provision for early transmission of certain life insurance benefits.
See also: Tax obligations in Monaco: What every resident needs to know
Direct-line inheritance allowance raised to €120,000
In a significant adjustment, the allowance for “direct line” inheritances, benefiting children and direct ascendants, will increase from €100,000 to €120,000. This tax-free threshold, unchanged since 2012 when it was reduced from €159,325, was raised through two amendments introduced by Union of Democrats for the Republic (UDR) deputy Gérault Verny and National Rally member Jean-Philippe Tanguy. Advocates argued that the increase reflects inflation’s impact on purchasing power since 2012 and will provide generational financial support.
Despite opposition from Budget General Rapporteur Charles de Courson and Public Accounts Minister Laurent Saint-Martin, who argued the measure would cost public finances more than €2 billion, the amendment passed narrowly, with 88 votes in favour and 82 against.
Early life insurance transfers approved
National Council members also adopted a measure to enable early life insurance contract transfers to beneficiaries. Authored by Véronique Louwagie of the Republican Right, this amendment allows policyholders to transfer benefits early if certain premiums were paid before 1st October 2024 and if the policyholder reaches the age of 70 by 31st December 2025. This early transmission allows beneficiaries to receive up to €152,500 each without tax implications. Currently, beneficiaries receive this allowance only upon the policyholder’s death.
Future of inheritance reforms uncertain
While these amendments signal the Assembly’s support for tax relief on family transmissions, their ultimate adoption remains uncertain. The government could invoke Article 49-3 to push the Finance Bill through without further debate, bypassing the Assembly’s recent votes.
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Making a will in Monaco: what international residents need to consider
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