Tax all inheritance in France, says CFDT head
The leader of France's largest trade union has called for a fundamental overhaul of inheritance taxation, proposing that every inheritance be taxed from the first euro received.
Marylise Léon, who has led the CFDT since June 2023, told RTL radio that the union favours reforming the current system to eliminate tax-free allowances. "We favour a reform of inheritance tax, so that every inheritance would be taxed, from the first euro, which is not the case today," she said.
The proposal would dramatically alter France's existing structure, which currently allows €100,000 tax-free per child from each parent. This allowance, which renews every 15 years, means children can inherit up to €200,000 from both parents without paying tax. Government estimates indicate that two-thirds of estates involve no inheritance tax under current rules.
Léon suggested the reform could start with a new 1% rate on initial inheritance amounts, though she provided no further details on rate structures. She indicated the CFDT plans to discuss the proposal with presidential candidates, except those from far-right parties, ahead of the 18 April 2027 election.
Economic context and inequality
France already leads OECD countries in the proportion of GDP generated by inheritance and gift taxes. Revenue from these levies more than doubled from €7.0 billion in 2011 to €16.6 billion in 2023, according to the French Court of Auditors.
Despite this substantial revenue, the current system's structure means only the top 10% of inheritances to direct descendants face average tax rates above 5%, according to government analysis. The median inheritance amount stands at €70,000, well below the tax-free threshold, while approximately one-third of French residents inherit nothing during their lifetime.
Wealth concentration at the top creates stark contrasts. The top 0.1% of inheritors receive an average of €13 million, roughly 180 times the median amount. According to Oxfam France, these large inheritors pay an effective rate of only around 10% due to exemptions and tax optimization strategies.
The tax system, designed in 1901 to limit inequality through progressive rates, treats different family relationships very differently. While spouses have been fully exempt since 2007, unrelated beneficiaries and distant relatives face a 60% flat rate with only a €1,594 allowance.
Political landscape
Inheritance tax has emerged as a campaign issue for 2027. Centre-left candidate Raphaël Glucksmann proposes additional taxation on the largest 1% of inheritances, while green candidate Marine Tondelier's party advocates extra taxes above €4 million.
Right-wing candidates are moving in the opposite direction. Bruno Retailleau pledges to reduce inheritance tax, while Édouard Philippe and Gabriel Attal propose easing restrictions on lifetime gifts. Marine Le Pen's Rassemblement National wants to exclude up to €300,000 of property from calculations and allow €100,000 tax-free gifts to descendants every ten years instead of the current 15-year cycle.
The CFDT's proposal faces significant public resistance. A 2023 Les Echos study found nearly three-quarters of French people believe current inheritance tax levels are already too high, despite the tax having existed since 1791.
