French Legal Advice Archives

Assets in the UK and France: Should I have one Will or two?

Posted on 2 February 202523 March 2025 by Sarah O'Sullivan

Before 17 August 2015, the usual advice to people owning property in both the UK and France was that it was preferable to have two separate Wills governing the assets in each country.

French inheritance law with its rules of forced heir ship for beneficiaries such as children applied to all French land and buildings, and for French residents, French inheritance law applied to their movable assets such as bank accounts too. The rigidity of these succession laws often posed problems for UK nationals who, for example, could not pass their assets entirely to the surviving spouse as they would in the UK, due to the entrenched rights of children.

In this article, French law expert and specialist in cross-border Will and Trust arrangements, Sarah Walker, outlines the issues that need to be considered if you own property or indeed, are thinking about buying property in France and have not addressed this in your Will.

How has the law changed in relation to succession?

With the arrival of the EU Succession Regulation known as Brussels IV in 2015, it became possible for British nationals living in either the UK or France to choose to apply English law, and the testamentary freedom that comes with it, to their French assets.

This has appealed to many people, not least because of the simplicity of applying one set of laws to your estate as a whole and having one universal Will covering all of your assets.

However, it is really important to take advice from a lawyer who is conversant with both English and French inheritance law and tax to see whether a choice of English law will be the best option in your specific circumstances, and also whether you should have one Will or two.

One Will or two, what’s best for me?

Whether or not you would be better off with a universal Will or separate Wills will depend on:

the location, value and nature of your assets
your personal circumstances and wishes regarding the distribution of your estate.

A cross border Wills specialist will be able to help you meet as many of your aims as possible and give you clarity about the inheritance tax position in both countries. It is particularly important to take this type of advice if you are resident in France or have plans to become resident in the future.

It is worth noting in this context that France and the UK have different views of residence and domicile and French tax resident status can apply to you more commonly than you might imagine.

What are the risks of ignoring French assets?

If you instruct your UK solicitor to prepare your English Will with the intention that you will see a separate lawyer to deal with France at a later date, the risk is

you may never get around to doing so;
you may run into problems if the two Wills are not compatible.

In some scenarios it can be the case that, through having a separate French Will, you may avoid the need for a Grant of Probate on your death if one is not needed for other assets in the UK.

It is fairly common for this to be the case with a married couple who own all of their assets jointly, for example. This can mean that your French estate can be dealt with more quickly than would otherwise be the case.

Are there any exceptions to how choice of law can be applied?

There are methods of owning French property which mean that a property will devolve outside the terms of any Will and regardless of any choice of law. These are:

a matrimonial property regime;
a corporate structure, or
some forms of joint ownership such as a ton-tine arrangement.

Most English solicitors will not have the expertise to advise on this, and yet clearly it is very important that the full picture in this respect is known before any Will can be prepared that incorporates the French property concerned.

Has inheritance tax been affected by Brussels IV?

Whilst Brussels IV allows for a choice of succession law, it has not changed the position at all with regards to inheritance tax. If you are domiciled in the UK or own UK assets, then consideration must be given to the inheritance tax implications in both countries if you also have property in France.

An English solicitor with knowledge of both French and English inheritance and tax law can be invaluable in helping you decide how best to structure your Will(s) in this respect.

For example, whilst you may now be able to choose to leave your French property to people unrelated to you such as stepchildren or an unmarried partner, these individuals will pay French inheritance tax at 60% on any share passing to them.

Potential tax and trust issues to be aware of

Some concepts that are possible under French law and which a French Notaire may suggest, such as including an “usufruit” in your Will can have negative inheritance tax consequences in the UK.

It is also important to bear in mind the potential issues that can arise when an English Will comes to be interpreted and administered in France following your death. In France there are ordinarily no Executors, instead the assets vest in the beneficiaries directly. Problems can sometimes arise if the French authorities seek to tax the assets twice on a perceived transfer of ownership to the Executors and then on to the beneficiaries.

If your English Will contains trusts then it is important to be aware of the French rules regarding tax treatment of trusts and the reporting obligations, which can be punitive. An English Will prepared without due consideration of the French position can cause complications in France when a French lawyer comes to transfer the property to the beneficiaries after your death.

Often it will be advisable to prepare a separate French Will or to draft the English Will in a particular way to avoid problems of this nature, or an unnecessary tax bill.

Finally, it is important that any steps taken or documents drafted for assets in either country dovetail together to avoid any conflict or accidental revocation. Giving proper consideration to these issues at the time you are preparing your Will can give you peace of mind and be of huge benefit to your beneficiaries through saving them time and money further down the line.

How to sell a property in France

Posted on 12 December 202423 March 2025 by Sarah O'Sullivan

Selling property in France is a different experience compared to the UK, so it’s crucial to seek expert legal advice before making any commitments. At Tees, our bilingual legal specialists offer comprehensive support to ensure a smooth, stress-free transaction.

Understanding the French property market

The French real estate market often leans towards a buyer’s market, influenced by political and economic factors. While this may affect your sale price, it can also attract more potential buyers looking for opportunities.

Property valuations and Estate Agent mandates

Many estate agents provide free valuations, typically in exchange for securing a sales mandate. Ensure the mandate is non-exclusive if you’d like the flexibility to engage multiple agents. Carefully check the commission terms before signing.

Setting a realistic asking price

Pricing your property appropriately is key. Overpricing can deter buyers, especially those seeking quick transactions. Properties left on the market for extended periods may raise concerns about potential issues.

Mandatory property diagnostics

Sellers are legally required to provide diagnostic reports covering aspects such as asbestos, electricity, and energy performance. Having these reports ready or arranging them promptly can streamline the process.

The Compromis de Vente

The initial sales contract in France, known as the “compromis de vente” or “promesse de vente”, is typically drafted by the estate agent. However, it is essential to have this reviewed by a qualified lawyer. Your lawyer will:

Ensure all necessary disclosures are made.
Identify any risks or hidden defects.
Include appropriate liability exclusion clauses.

Capital Gains Tax (CGT) in France

For UK residents, French CGT is 19%, with an additional 7.5% solidarity tax, totalling 26.5%. EU residents face a higher rate of 36.2%, including social charges. Tax exemptions may apply based on ownership duration:

22 years for tax exemption.
30 years for social charges exemption.
Full exemption applies to main residences.

Avoiding common pitfalls

Misrepresenting a holiday home as a main residence to evade tax is strongly discouraged. French authorities cross-reference property records and may impose penalties for under reporting sales prices. Additionally, side payments outside the notaire’s account are illegal and can lead to severe fines.

In cases of separation or divorce, the ownership period for CGT purposes remains unaffected, provided one party continues to reside in the property.

Optimising your tax position

Sellers can reduce their taxable gain by including eligible expenses, such as renovation costs and notarial fees, in the property’s acquisition price. Our legal experts can advise on maximising these deductions.

Why choose Tees for your french property sale?

Our bilingual team offers tailored legal guidance, including:

Pre-sale advice on tax implications and seller responsibilities.
Contract reviews to ensure your interests are protected.
Liaison with notaires to negotiate terms and arrange signings.
Compliance checks on mandatory declarations and diagnostics.
Secure fund management for smooth financial transactions.

With Tees, you benefit from expert legal support at every stage of your French property sale. Contact us today for personalised advice and a hassle-free experience.

Investing in a French property at a reduced cost: The purchase of the bare title only

Posted on 12 September 202323 March 2025 by Sarah O'Sullivan

Buying a French property at a lower price is possible through the concept of bare ownership. By purchasing only the bare title, you reduce upfront costs and gain full ownership at the end of the usufruct period. Here’s how it works and why it could be a smart investment.

What is Bare Ownership?

Bare ownership involves dividing property ownership into two parts:

Bare owner: Owns the property but cannot use or benefit from it during the usufruct period.
Usufructuary: Holds the right to use the property and receive rental income.

Once the usufruct period ends, the bare owner automatically gains full ownership. The responsibilities and obligations of each party are outlined in the authentic deed of sale, notarised as required by French law.

Both the usufruct and the bare title have a value, which is calculated by the French tax administration based on the age of the usufruct holder at any given time, as follows:

Age of Usufruct holder	Value of usufruct	Value of bare title
Under 21 years	90%	10%
From 21 to 30 years	80%	20%
From 31 to 40 years	70%	30%
From 41 to 50 years	60%	40%
From 51 to 60 years	50%	50%
From 61 to 70 years	40%	60%
From 71 to 80 years	30%	70%
From 81 to 90 years	20%	80%
From 91 years	10%	90%

Why buy in Bare Ownership?

Investing in bare ownership offers numerous advantages:

Reduced purchase price: Acquire property at a 30-50% discount compared to full ownership.
Tax benefits: Loan interest may be deductible if the usufruct is held by a social landlord or taxable lessor.
No management costs: Maintenance and management expenses are borne by the usufructuary.
No rental risks: The usufructuary handles tenant management.
Wealth tax exemption: The property is excluded from your taxable real estate wealth (IFI).
No property taxes: Property and housing taxes are paid by the usufructuary.
Guaranteed full ownership: At the end of the usufruct period, you become the sole owner with no additional cost.
Estate planning: You can transfer bare ownership to heirs with reduced inheritance taxes.

Potential drawbacks of Bare Ownership

No immediate use or income: You cannot occupy the property or earn rental income until the usufruct ends.
Financing challenges: Banks may hesitate to finance bare ownership without additional guarantees.
Responsibilities: Without clear terms in the contract, major repairs could become the bare owner’s responsibility.

How to purchase bare ownership

Bare ownership purchases can occur between individuals or through specialised companies that manage usufructuary rights. Typically, companies offer limited usufruct periods (15-20 years) and professionally manage the property. This arrangement ensures a lower purchase price and hassle-free management.

Before committing, UK buyers should consult with a British accountant to assess any UK tax implications.

Financing a Bare Ownership purchase

While financing options are limited, possible solutions include:

Mortgage on other assets: Using another property as collateral.
Life insurance pledge: Pledging a life insurance policy as security.
In fine loans: Paying only interest during the loan term, with capital repaid at maturity.

Additional considerations

Donation in Bare Ownership: Gifting bare ownership can reduce inheritance taxes. However, this process is irrevocable.
Sale in Bare Ownership: Sellers seeking liquidity can retain usufruct rights while accessing capital from the sale.
Parent-child purchases: Parents can buy usufruct while children hold bare ownership, facilitating property acquisition.

Expert guidance

Bare ownership can be a smart investment, but legal and financial advice is essential. Contact Avocat Herve Blatry for personalised guidance on navigating the complexities of bare ownership in France.

Advice on opening a French branch or subsidiary post-Brexit

Posted on 15 June 202123 March 2025 by Sarah O'Sullivan

Brexit has introduced significant barriers to trade between the UK and the EU. Many companies are struggling with increased red tape, delays, and complex restrictions, making cross-border business more challenging than ever.

To mitigate these difficulties, a growing number of UK businesses are considering establishing a branch office or subsidiary in France. With its streamlined processes and strategic location, France offers one of the quickest and most practical solutions for maintaining an EU presence.

In this guide, we’ll explain the differences between a branch and a subsidiary, walk you through the setup process, and outline key legal considerations.

Branch vs. Subsidiary: Which is right for your business?

Choosing between a branch and a subsidiary depends on your business goals. Each structure has its advantages and legal implications.

What is a Branch?

A branch is an extension of your UK company rather than a separate legal entity. It has no independent legal personality, simplifying the setup process.

Benefits of a French branch:

Faster and easier setup
No need to draft new statutes or incorporate a separate entity
Cost-effective compared to a subsidiary

Key requirements:

Provide certified French translations of company documents (e.g., Articles of Association)
Register with the French Commercial Court Registry
Publish an announcement in a legal journal

What is a subsidiary?

A subsidiary, unlike a branch, is an independent legal entity incorporated under French law. While it requires more administrative effort, it offers greater legal protection and operational flexibility.

Benefits of a French subsidiary:

Separate legal responsibility from the parent company
Easier to establish business contracts with French companies
Enhanced credibility in the French market

Key steps to set up a subsidiary:

Draft company statutes
Open a corporate bank account in France
Register the company with the Commercial Court
Appoint a legal manager and accountant

Hiring employees for your French Office

Both branches and subsidiaries can employ staff. However, French employment law will apply, and it’s crucial to comply with local regulations. During the initial phase, you can second employees from your UK company for up to 12 months, subject to renewal in certain cases.

Important Considerations:

Employment contracts must meet French legal standards
French law mandates public order rules that cannot be waived
Provide competitive salaries and benefits in line with French norms

Navigating French Commercial law Post-Brexit

Since Brexit, many French companies prefer formal contracts governed by French law. It’s essential to understand key principles in French commercial law, including:

Duty to inform: Businesses must disclose critical information during negotiations.
Abuse of dependency: Contracts may be invalidated if they result from an imbalance of power.
Unilateral price setting: Allowed in framework contracts, provided prices are justified.
Imprévision: Contracts may be renegotiated in the event of unforeseen circumstances.
Contract termination rights: Contracts without end dates are terminable without notice.

Resolving commercial disputes in France

Commercial disputes in France are handled by specialised Tribunaux de Commerce, ensuring faster, cost-effective resolutions. The Paris Commercial Court even has an international division with English-speaking judges, providing a practical option for UK businesses.

Partner with French legal experts

Setting up a branch or subsidiary in France can provide significant advantages in navigating Brexit trade challenges. Our specialist French Avocat Hervé Blatry offers tailored legal support, guiding you through every step of the process.

French Trust Rules: How to prevent your Family Trust from being undermined

Posted on 10 May 202123 March 2025 by Sarah O'Sullivan

Many English trusts have a connection with France, often because they own French assets like a holiday home or involve beneficiaries, trustees, or settlors residing in France. Understanding how French trust rules apply is crucial to avoiding unexpected tax liabilities and legal complications.

Understanding French residency and its impact on Trusts

A person is generally considered a French resident for any calendar year in which they spend 183 days in France, even without a permanent home there. Additionally, a person may be deemed a French resident if their main home is in France. This makes it easy for an English trust to inadvertently acquire a French connection, particularly if there are numerous beneficiaries.

Why legal expertise matters

Navigating Anglo-French legal matters requires specialised knowledge. Sarah Walker offers expert assistance in preparing French Wills, advising on French estate and inheritance tax planning, and handling trusts with French assets.

What is a Trust?

A trust is a legal structure used in England and other jurisdictions to allow designated individuals (trustees) to manage assets for the benefit of others (beneficiaries). However, trusts are not recognized in the same way in France. Since 2011, France has imposed tax regulations on foreign trusts connected to the country, applying a broad definition of what constitutes a trust.

How English Trusts can acquire a French connection

Here are some common scenarios where English trusts may become subject to French regulations:

Case study 1: The Discretionary Trust

Isobel Turner established the Turner Family Trust in 1989. It’s a discretionary trust with her children and grandchildren as intended beneficiaries.
In 2019, Isobel’s great-nephew Zak spent eight months working in France and became a French tax resident.
Despite Zak having a minimal likelihood of benefiting from the trust, its connection to France could trigger French reporting and tax obligations.

Case study 2: The Will Trust with French Assets

Joseph, a UK resident, creates a Will trust for his wife and children, including his French holiday home.
Upon his death, the trust will fall under French regulations due to the presence of the French property.
A separate French Will could have bypassed these issues.

French Trust regulations and compliance

Foreign trusts connected to France must comply with strict reporting requirements, including annual declarations to the French tax authorities. Additional declarations are required if the trust is modified or terminated.

Non-compliance penalties:

Fines of €20,000 or 12.5% of the trust’s total assets.
French authorities can investigate up to 10 years of past non-compliance.
Severe cases can result in criminal sanctions, including up to 5 years in prison and a €500,000 fine.

French wealth tax and inheritance tax

Trusts may be subject to the annual French wealth tax at 1.5% of worldwide assets if the settlor or beneficiaries are French residents.
French inheritance tax may also apply upon the settlor’s death or when assets leave the trust.
Income distributed to French residents is subject to French income tax.

While the UK-France double tax treaty may offer relief, this remains a complex area requiring specialised legal advice.

How to avoid the French trust regime

To mitigate the risk of French trust rules applying to your trust, consider these proactive steps:

Create a separate French will: This ensures French assets are dealt with under French law without interfering with your English will.
Avoid trusting French assets: Unless absolutely necessary, consider other estate planning solutions for French properties.
Exclude French residents as beneficiaries: Keep French residents off the beneficiary list unless unavoidable.
Choose non-French trustees: Appoint trustees who are not French residents to prevent further tax complications.
Seek legal advice before relocating: If a beneficiary or trustee plans to move to France, professional legal advice can prevent unforeseen tax exposure.

Do other countries have similar rules?

Yes. While French trust rules are well-known, other countries may also impose stringent regulations on foreign trusts with local connections. It’s vital to seek legal advice for any cross-border estate planning.

For personalised guidance on managing trusts with French connections, contact Sarah Walker . With her expertise in Anglo-French legal matters, she can help ensure your trust remains compliant and tax-efficient.

How to start a business in France

Posted on 8 October 201823 March 2025 by Sarah O'Sullivan

It is possible to start a simple business quickly and cheaply in France. Larger and more complex enterprises may require expert advice to ensure that they are registered correctly and comply with the relevant regulations.

While many of the things you’d do when setting up a business are the same in France as in the UK, for example preparing a business plan and researching your market and competitors, it is often the company structures and business regulations in France that can deter people from setting up their own business there. It is true that France does appear to have a baffling number of processes, but it has in fact been made easier for business start-ups in recent years and many aspects have been simplified.

Here we take a look at the steps to consider:

French legal business structures

There are two types of legal business structure in France:

Sole trader (entreprise individuelle or EI)

If the business you are hoping to set up is small and you do not need any significant funding, it is likely that an entreprise individuelle (EI) will work for you. This is what we would call a sole trader business in the UK. In addition, you can set it up using the business tax status of micro-entrepreneur, which protects your family home from business creditors.

A company (société) such as EURL and SARL

However, if your business requires a loan, is likely to make a loss in the first years, or you are running it with non-family members, then you would be better advised to set up a limited liability company. The most common types are the entreprise unipersonnelle à responsibilité limitée and the société à responsibilité limitée, which are abbreviated to EURL and SARL.

These different structures have a variety of tax implications, i.e. they determine whether you are taxed through your business or your personal income tax. Additionally, there are other types of company for more complex structures, which you would be advised to discuss with an expert in French company law.

It is worth noting that if you are a national of the European Economic Area (EEA), you do not need a residence or work permit to start a business in France.

Registering a business in France

All new businesses in France need to be registered with the authorities, and this is done at a business registration centre known as a centre des formalités des entreprises (CFE). This does the job of notifying all the relevant statutory bodies who need to be aware of your business, such as tax and social security organisations.

You can do this yourself very cheaply if your business is a simple entreprise individuelle, but for more complex business structures, while it is still possible to do it yourself, you are probably better advised to use the services of an avocat (a French lawyer) or an accountant.

Confirmation of your registration usually takes about two weeks, after which you will receive a business identification document, which is called an extrait K for a sole trader or an extrait Kbis for companies. You will also be given a 14-digit business registration number known as your SIRET (the first nine numbers refer to your identity on the national business register, while the last five identify the area in France in which your business is located).

French business classification

There is also a system of classification for all businesses in France that identifies whether your business is a trade, a profession or commercial, or whether you are working as an agent, in agriculture or in the artistic sector. You will need to decide which of these your business falls into when you register the company – if your business falls into two categories, then you should register your principal activity. Your local French chamber of commerce should be able to help you decide on the appropriate category.

French business insurance

Consider taking expert advice regarding your public liability and professional indemnity insurance. While it is not obligatory for all business activities, your business classification will identify what cover is required and premiums can be high.

Finding business premises in France

It is possible to run your business from home in France without any change of use from the planning authorities as long as the property continues to be your home. You may have issues with neighbours, however, and if you are receiving clients or goods to your home address you should apply to your local mairie/préfecture for consent. You should also check your lease if you live in a block of flats, as there may be a clause there which states that commercial activities cannot be carried out on the premises.

Buying business premises in France is fairly straightforward, although you should consider using a legal structure called a société civile immobilière (SCI) as it can offer some financial advantages.

If you buy an existing business and premises, you will be required by French law to respect existing employment contracts. Also remember that France has regulatory requirements for certain types of business, e.g. health and safety if you are considering opening a food-related business.

French business banking and accounting

If you have a separate business in France, you are required to open a business bank account in the same name as the business. You may receive an introduction to a bank when you register your company and it may be necessary to visit the bank in person and to take a copy of your business plan with you. There is likely to be a minimum deposit required and a quarterly charge for your business account.

If you have chosen to trade as an entreprise individuelle, the authorities are usually happy for you to manage the book-keeping yourself, and the same is true if you opt for the micro-entrepreneur tax regime – as long as you keep a book of expenditure and receipts and have this available for possible short-notice inspection.

Although you’ll most likely be willing to do the book-keeping for your new business yourself, it is worth (and this could save you money in the long run) appointing a professional French accountant with commercial expertise, otherwise known as an expert-comptable. They are legally responsible for keeping you informed of changes to the tax laws and for keeping your accounts in good order.

Financial assistance for starting a business in France

A good expert-comptable will also be able to advise you on the best way to access financial assistance for your new start-up. There are many schemes available, and it is worth taking the time to research the one that would be best suited to your business and situation. They will often include tax and social security savings, as well as offering grants or low interest rate loans. The government offers subsidised employment contracts to certain business sectors if you are able to offer jobs to the unemployed, the young or the elderly.

Paying tax in France

How you pay tax will be dependent upon the structure you have chosen for your business, and will either fall under the personal income tax system called impôt sur le revenu or the company tax system known as impôt sur les sociétés.

If you are a sole trader, then you are automatically taxed under the personal income tax system. A limited company in sole ownership can choose to be taxed through either system, while a limited company in joint ownership should be taxed under the company tax system.
Whichever way you pay your tax, you will pay your social security contributions under the régime des travailleurs non salariés (TNS).

Employing staff for your new business

You can find staff via recruitment agencies, newspapers and online much as you would in the UK, or you can use the pôle emploi, which is the national job centre. However, employment law is complicated in France and it is a good idea to contact a specialist French lawyer who will advise you as to whether you have the correct business structure to employ staff. They will also help you to declare your new member of staff to the relevant authority, as well as ensuring that you comply with all other conditions of employment.

Marketing your business

If you are marketing your business in France, i.e. if you are not relying solely on clients from the UK, you must remember to be sensitive to French traditions and protocols. As in the UK, get to know your market and identify appropriate advertising channels. Write all your marketing communications in French and do not presume that you can simply translate any existing materials, which will target the English market, into French.

If you are about to start a business in France and want help at any stage of the process, our French-speaking legal team can give you the straightforward advice you need. The team is led by our French-qualified avocat Herve Blatry, based in our Bishop’s Stortford office, who has extensive experience of conducting business in France and will be able to offer specialised advice and secure you the best results.

Call our French legal team on 01279 322 515 for an initial obligation-free chat, or fill out our enquiry form and we will get in touch.

How to use the donation-partage (or gift with distribution)

Posted on 12 March 201723 March 2025 by Sarah O'Sullivan

The donation-partage (or gift with distribution) is a legal instrument under French law that allows individuals to distribute their assets among their children during their lifetime. It serves as both a lifetime gift and an anticipatory succession plan. This concept is especially relevant in France, where forced heirship rules apply, ensuring children (and in the absence of children, the spouse) receive a reserved portion of the estate.

In contrast to the UK, which lacks forced heir ship laws, the donation-partage is a strategic tool to prevent disputes and simplify the inheritance process. However, it is a complex legal arrangement that requires careful consideration and expert legal advice.

Key benefits of Donation-Partage

Minimises family disputes: By agreeing to the distribution during the donor’s lifetime, children reduce the likelihood of disagreements after the donor’s death. The process helps avoid joint ownership complications and lengthy succession procedures.
Tax advantages: Assets transferred via donation-partage are exempt from death duties. This can result in significant tax savings.
Control over distribution: Donors have the flexibility to allocate assets as they see fit, provided the reserved shares of children are respected. For example, if a French estate is valued at €300,000 with two children, each child is entitled to at least €100,000, while the remaining €100,000 can be freely allocated.
Valuation protection: The value of assets transferred through a donation-partage is fixed at the time of the gift. This contrasts with outright lifetime gifts, which are valued at the time of death, potentially creating unfairness in asset distribution.

Example of valuation discrepancy

Consider a scenario where a father gifts equal sums of cash to his two children. One child invests in property while the other spends their money. Upon the father’s death, the invested property may have appreciated, leading to a perceived inequality in inheritance. With a donation-partage, the valuation is frozen at the time of the gift, preventing such disparities.

Legal formalities

Notarial deed: A donation-partage must be executed before a notaire (a public official specializing in French law).
Spousal participation: If the couple’s matrimonial regime includes joint ownership, a joint deed is recommended to manage both individual and shared assets.
Acceptance requirement: All beneficiaries must accept the donation-partage. If one refuses, the agreement remains valid for the others. The refusing beneficiary retains the right to challenge the donation if it undermines their reserved share.

Special considerations

Reintegration of prior gifts: Outright gifts can be incorporated into a subsequent donation-partage, though they will be revalued at the time of reintegration.
Conditional clauses: Donors may specify that in the event a beneficiary predeceases them, the gifted asset reverts to the donor. Proper drafting is essential to prevent complications, particularly with jointly held assets.

Why choose Tees

While the donation-partage offers substantial benefits, it is a technical legal tool requiring professional guidance. If you are considering using this mechanism to secure your family’s financial future, seek advice from a legal specialist experienced in French inheritance law.

Understanding the Macron Law : Key changes

Posted on 12 March 201723 March 2025 by Sarah O'Sullivan

The Macron Law, passed in France in August 2015, was designed to reduce bureaucratic red tape. Named after French Economy Minister Emmanuel Macron, this legislation has significantly impacted various areas of French law, including real estate. One of its primary goals is to minimize court cases related to planning permission issues.

This article outlines the most notable changes affecting French property owners and potential investors.

Can my neighbour have my house demolished?

Previously, disgruntled neighbour could initiate frivolous claims to overturn planning permissions, often citing minor technicalities. While such cases were not always successful, they caused significant delays and financial loss.

Under the Macron Law, the right to request demolition is now limited to specific areas, including:

Natural reservations and protected perimeters
Coastal strips within 100 meters of the shoreline
Areas protected by the Mountain Law
Natural 2000 sites safeguarding rare species
Sensitive areas with environmental restrictions
Zones with classified heritage buildings

Additionally, two existing conditions remain in place:

The construction must have been completed in compliance with a planning permission that was subsequently revoked.
Any demolition claim must be filed within two years of the court’s final decision to cancel the planning permission.

These changes offer greater legal protection to property owners, reducing the likelihood of groundless claims.

Building on agricultural land

Before the reform, building in agricultural zones was restrictive. Only agricultural structures or the conversion of existing buildings were permitted, without external modifications.

The Macron Law has eased these rules. Property owners can now:

Build extensions to existing buildings
Construct annexes such as garages, swimming pools, and sheds

However, it remains essential to check local planning regulations (Plan Local d’Urbanisme) before proceeding with any project.

Planning permission timeframes

The law has also introduced streamlined approval processes. Standard planning applications must be processed within two months. For projects near listed buildings requiring approval from the Architect of the Bâtiments de France, the timeframe is capped at four to five months.

If authorities fail to respond within these periods, the application is deemed approved. Additionally, planning permissions are now valid for three years, with extensions available upon request at least two months before expiry.

Changes to renting laws in France

In areas of high housing demand, known as “tense zones,” rent control measures apply. These regulations prevent unjustified rent increases, using standardised benchmarks based on factors like location, size, and building age.

From August 2015, landlords must use a mandatory rental agreement template. Furnished rental contracts also require an inventory list to ensure compliance with minimum living standards.

Notice periods for tenants in tense zones have been reduced to one month, while landlords must provide three months’ notice in all cases, with limited exceptions. Additionally, landlords must return deposits within one month if no damage is found or within two months if issues arise.

Buying and selling property in France

The cooling-off period for buyers has been extended from seven to ten days, giving purchasers more time to reconsider without losing their deposit. Sellers can now provide necessary documents electronically with the buyer’s consent. When purchasing apartments, sellers must supply minutes from the last three general meetings of the co-ownership.

Notaire fees and real estate ethics

The Macron Law has also introduced reforms for notaire fees, ensuring they are reasonable and based on objective criteria. Additionally, a code of ethics for real estate professionals mandates honesty, transparency, and up-to-date legal knowledge.

Why choose Tees

Navigating French property law can be complex. Whether you are buying, selling, or renting a property, consulting a qualified French legal professional is highly recommended to ensure compliance with the Macron Law and other regulations. Tees legal advice will help you make informed decisions and safeguard your investment in France.