Franco-Moroccan Succession: How to Avoid Double Taxation

No. There is no bilateral tax treaty between France and Morocco specifically dedicated to inheritances. Each country therefore unilaterally applies its own estate taxation rules. Effective double taxation is possible if the deceased or heirs straddle both countries. France applies its inheritance tax under article 750 ter of the General Tax Code, while Morocco applies Islamic inheritance law without formal inheritance taxes for direct heirs.

No, Morocco does not levy inheritance taxes as such. However, heirs are subject to the Real Estate Capital Gains Tax (TPI) if and when they sell the inherited property, calculated on the difference between the sale price and the value recorded at the time of inheritance. Additionally, registration and certification fees for the heirship deed are to be expected at the competent court.

Under Article 750 ter of the General Tax Code, France taxes real estate located in France if the deceased or heirs are French tax residents, as well as assets located in France regardless of the parties' residence. For real estate located in Morocco, it is in principle subject to French taxation if the deceased was a French tax resident. In the absence of a treaty, France can therefore tax Moroccan assets, creating double taxation with Moroccan fees.

In France, direct line heirs (children, grandchildren) benefit from an allowance of 100,000 euros per heir per parent every 15 years, before the progressive tax scale applies. The surviving spouse has been fully exempt from French inheritance tax since 2007. In Morocco, direct heirs (reserved heirs under Maliki law) do not pay formal inheritance taxes. Costs are limited to civil status and registration acts.

Yes, but with important precautions. Moroccan law (Family Code, Moudawana) only recognizes the will (wasiya) for up to one-third of assets for non-heirs. Reserved heirs (children, spouse) have imprescriptible rights under fara'id (Islamic inheritance law). In France, the European Succession Regulation (EU No. 650/2012) has allowed since 2015 choosing the law applicable to one's estate (law of the country of nationality or habitual residence). A notary specializing in private international law is essential.

In the absence of a bilateral treaty, several strategies can reduce double taxation: 1) Deduct taxes paid abroad from those due in France (under conditions), 2) Structure ownership of Moroccan assets through a Moroccan SCI or holding company to change the tax characterization of assets, 3) Anticipate transmission through lifetime gifts to spread the French allowance over 15 years, 4) Consult a tax lawyer specializing in Franco-Moroccan law for a personalized assessment.

The French notary generally requires: the apostilled and translated Moroccan death certificate, the heirship deed drawn up by two adouls and certified by the notary judge in Morocco (translated and apostilled), the property titles of Moroccan real estate (land title or notarized deed), Moroccan bank statements at the date of death, and a consular registration certificate if the deceased was registered at the consulate. The time to obtain these documents can reach 3 to 6 months.