Case Reference: Court of Cassation, First Civil Chamber, 17 June 2021, appeal no. 19-24.871, published in the Bulletin.
International Succession in France: EU Regulation 650/2012 and the Applicable Law
Are you a foreign national, non-resident or expatriate, and do you own real estate in France? The question of the succession to this property is crucial. Since 17 August 2015, European Regulation No. 650/2012 (the "Succession Regulation") has unified the conflict-of-law rules governing international successions within the European Union. However, its interaction with French law, particularly with regard to assets situated in France, was clarified by a significant judgment of the Court of Cassation dated 17 June 2021 (appeal no. 19-24.871). This article explains the key points and how Maître Cécile Zakine can assist you.
1. EU Regulation 650/2012: The Principle of Unity of the Succession
Regulation 650/2012 establishes that the law applicable to an entire international succession is that of the deceased's last habitual residence. This principle of unity aims to avoid the fragmentation of the succession across multiple legal systems. However, the Regulation permits the deceased to choose, by will, the law of his or her nationality (prorogation of jurisdiction).
For non-EU nationals, the Regulation may apply if the deceased was resident in a Member State at the time of death, or if the assets are located in a Member State. France applies the Regulation even to successions of non-Europeans, subject to French mandatory rules.
2. The Judgment of 17 June 2021: Scope and Analysis
In this case, a deceased person of foreign nationality (non-EU) was resident in France. His estate included real property situated in France. The issue was whether French law (as the law of the residence) applied to the entire succession, or whether the deceased's national law could be retained for certain aspects.
The Court of Cassation reiterated that Regulation 650/2012 is of universal application: even for a non-European deceased, if his or her last habitual residence was in France, French law applies to the entire succession, including real property situated in France. It further specified that French mandatory rules (public policy, reserved share of inheritance) prevail, even if the foreign law chosen by the deceased is different.
In the instant case, the deceased had attempted to subject his succession to his national law (which did not recognise the reserved share). The Court held that the reserved share of inheritance for children (Article 912 of the Civil Code) is a matter of public policy and applies whenever French law is competent. Consequently, a protected heir cannot be deprived of his or her share by a choice of foreign law.
3. Practical Consequences for Foreign Property Owners
If you are a foreign national and own property in France, here are the points to bear in mind:
- Habitual Residence: If you are resident in France at the time of your death, French law will govern your entire succession, including assets abroad (unless you have chosen your national law by will).
- Choice of Law: You may, by will, choose the law of your nationality for your succession (Article 22 of the Regulation). This choice must be express and comply with the formal requirements for wills.
- Reserved Share of Inheritance: Even in the event of a choice of foreign law, protected heirs (children, spouse) may invoke the French reserved share if the asset is situated in France and French law is subsidiarily competent (Article 913 of the Civil Code).
- Taxation: Inheritance tax in France is due on assets situated in France, regardless of the deceased's domicile (Article 750 ter of the French General Tax Code). International tax treaties may prevent double taxation.
4. How Maître Cécile Zakine Can Assist You
As a lawyer specialising in property law and private international law, I offer tailored assistance:
- Advance Advice: Analysis of your family and asset situation to determine the applicable law and optimise your succession (will, gift, choice of law).
- Drafting of International Wills: Compliance with the formalities of Regulation 650/2012 and French law to ensure the validity of your wishes.
- Management of Conflicts of Laws: Negotiation with heirs and foreign authorities to avoid disputes.
- Tax Optimisation: Review of international tax treaties and applicable provisions to minimise the tax burden on your succession.
Besoin d'un conseil personnalisé ? Contactez Maître Zakine — première consultation 30 min à 45€.
