Taxation of household furniture under French law

French tax law also provides specific rules for the taxation of household furniture, meaning all movable items intended for the use and furnishing of residential property. This article sets out the valuation methods provided by law and the options available to heirs to challenge the amount assessed.

Principle of taxation of household furniture

Legal basis

Article 764(I) of the French General Tax Code provides that household furniture forms part of the taxable estate according to valuation methods determined by law. This taxation is independent of that applicable to immovable property and financial assets.

The three valuation methods provided by law

Valuation by reference to a public sale

Household furniture may be valued on the basis of the price stated in a public auction sale conducted within the two years preceding the death.

Valuation by inventory

Household furniture may also be valued on the basis of an inventory drawn up within the five years preceding the death. This inventory must be precise, detailed and sufficiently substantiated in order to be enforceable against the tax authorities.

Application of the 5% lump-sum allowance

In the absence of a public sale or an inventory, the law provides for the application of a 5% lump-sum allowance. This allowance is calculated on the total value of the immovable and movable assets forming part of the estate, excluding the household furniture itself and before deduction of liabilities.

Challenging the lump-sum allowance

Possibility of providing contrary evidence

The heirs may prove that the actual value of the household furniture is lower than the 5% allowance applied by the tax authorities. Such proof may be provided by any means, provided that it is based on objective and verifiable evidence.

Case law guidance

The Court of Cassation has clarified the conditions for such proof, in particular in decisions of 5 March 1991 and 26 November 1996, requiring concrete, consistent and credible evidence.

Specific case of works of art and valuable items

Specific insurance and taxable value

Where works of art, jewellery, precious stones or collectors' items are covered by a specific insurance contract 

• in force on the date of death,
• and entered into less than ten years before the opening of the succession,
• their taxable value may not be lower than the valuation stated in that insurance contract.

Exclusion from the 5% lump-sum allowance

These insured assets are not included in the calculation of the 5% lump-sum allowance. They are subject to a separate valuation based on their insured value.

Practical issues in a cross-border context

The taxation of household furniture falls under French tax law. In successions involving international elements, in particular where assets or heirs are located abroad, it is essential to distinguish between:

• the civil law rules applicable to the succession,
• and the French tax rules governing the taxable base.

Confusion between these two levels may lead to inconsistencies in declarations or tax reassessments.

For further information

For a global analysis of successions involving France and Spain, you may consult:

• Inheritance in Spain: assistance for French-speaking heirs
• Inheritance tax in Spain

Do you need an inventory of household movable assets in Spain? 

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