Family, businesses and cross-border assets
Passing on your wealth between France and Andorra
An initial confidential discussion to identify the people, assets, countries and deadlines involved.
Succession planning starts with people, before choosing a company structure or considering a tax rate. Who needs protection, who should receive assets, who will be able to manage them, who needs income and which decisions should stay with the generation passing on the wealth?
Between France and Andorra, planning calls for two assessments in parallel. Civil law determines matters such as who inherits, what rights each person has, who has authority and how the estate is administered. Tax law determines where a gift or inheritance may be taxed. A workable solution must hold up on both fronts, make sense to the family and remain manageable over time.
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The people
Start with the people before choosing
the structure
Before comparing a gift, a split between usufruct and bare ownership, a holding company or a contract, answer some practical questions.
Who needs protection?
Does a spouse or partner need to keep their home, income or decision-making power? Does one child work in the family business while another should receive different assets? Are any beneficiaries minors, vulnerable, uninvolved in management or resident in another country?
What does the person passing on the assets want to retain?
Transferring ownership does not necessarily mean giving up income, governance or all decision-making power straight away. Identify those functions and give them legal effect through arrangements the family can manage.
Which assets should stay together?
An operating business, a family property, an investment portfolio and cash serve different purposes and face different constraints. Pursuing strict numerical equality can undermine an asset or force beneficiaries into joint ownership. A fair allocation accounts for value, liquidity, risk, management time and each person’s expectations.
Civil law and tax
Civil law and tax: two assessments to bring together
The law governing succession and the country entitled to tax the transfer are determined under different rules. Nationality, habitual residence, matrimonial property arrangements, a will, the nature and location of assets and the beneficiaries’ residence history may lead to different assessments.
Individual rights
Consequences of the transfer
The civil law assessment
It covers checks such as:
- the couple’s matrimonial property regime or other arrangements for holding assets;
- who inherits and whether any heirs have rights to a reserved share;
- the validity, scope and consistency of wills;
- management powers in the event of incapacity or death;
- the treatment of assets held directly, in undivided co-ownership or through a company;
- coordination of legal instruments with the relevant notaries and lawyers.
The tax assessment
Andorra does not levy income tax on assets received by inheritance, bequest, gift or another transfer for no consideration. A transfer with a French connection may still be taxable.
The exclusion of the acquisition from personal income tax (IRPF) applies to the beneficiary. The consequences for the donor and those attached to the transferred asset still need to be checked.
Under French law, Article 750 ter of the General Tax Code requires an assessment of matters including:
- the tax domicile of the donor or deceased;
- whether certain assets or rights are situated in France, including in some cases of indirect ownership;
- the beneficiary’s tax domicile on the date of transfer and, in certain cases, for at least six of the previous ten years.
Depending on the circumstances, France may tax assets located in France and potentially assets located abroad. The analysis takes place before any instrument is signed, using documented evidence of residence and ownership.
Considering a gift of shares or securities? See the tax and civil law questions to resolve before signing.
Read the analysis on gifts of shares and securities.Living in Andorra does not erase your tax history or your ties to France.
Assess a transfer country by country, person
by person and asset by asset.
The tools
Give now or pass on assets later
Lifetime gifts, gifts with a formal division of assets, splitting usufruct from bare ownership and transfers on death meet different needs. Their suitability depends on age, income needs, family circumstances, the nature of the assets and the applicable law.
Lifetime gifts
A gift allows you to transfer assets during your lifetime. Check whether the donor can retain income and financial security, the value of the assets, each child’s rights, the tax consequences and any reporting obligations in the countries involved.
Gifts with a formal division of assets (donation-partage)
This can organise a division of assets across beneficiaries and reduce some future allocation difficulties. Its civil and tax effects depend on the people involved, the terms of the instrument, the applicable law and the valuation used. Prepare it with the notary and the family’s advisers.
Splitting usufruct and bare ownership
Splitting usufruct and bare ownership can help preserve income or use of the assets, or allow for a gradual transfer. Alongside the tax implications, plan for decision-making powers, expenses, works, distributions, financing and any sale of the asset or securities.
Wills and powers of attorney
A will must be consistent with matrimonial property arrangements, previous gifts, the ownership structure and the applicable succession rules. Plan ahead for powers in the event of incapacity, continuity of management and access to information.
The business
Passing on a business: plan for
continuity before considering tax relief
Passing on shares in a family business raises three separate questions: who owns it, who runs it and who benefits from its value. The answers may differ, but they must work together.
Dutreil relief is subject to conditions
Subject to conditions, Article 787 B of the French General Tax Code can exempt 75% of the value of the transferred shares or securities when calculating French transfer duties. Check, in particular, the qualifying activity, holding commitments, the role performed, certificates and the composition of the assets.
For transfers made from 21 February 2026, the individual holding commitment increases from four to six years. The 2026 reform also excludes certain assets from the tax relief base if they are not used exclusively for the operating activity. A breach of the conditions can result in a reassessment of duties and interest.
Interposed companies and cross-border circumstances
A holding company or other interposed company does not necessarily rule out relief, but it adds ownership, holding and evidence requirements at each level. If a transfer falls within the scope of French rules, those rules still need to be examined when a company or shareholder is based outside France.
A holding company needs a purpose
A holding company can support governance, financing, ownership of subsidiaries or succession planning. Whether to set one up depends on your objectives. It may be better to keep the existing arrangements, simplify them or set up a single entity that is straightforward to manage.
We can also review company ownership and governance as part of our advice on group structuring.
Before passing on a business, document the group structure, the value of the shares or securities, each company’s activity, non-operating assets, existing commitments, future governance and the cash needed to pay duties or balance the allocations between heirs.
Real estate
Real estate: compare the implications before moving assets
Property can be kept in direct ownership, held through a company, refinanced, contributed, sold or passed on. Each transaction has its own consequences. The future tax rate is only one factor in the decision.
Scenarios to compare
retain the asset and plan to pass it on as it stands;
give the property, usufruct or bare ownership rights, or shares in a company;
buy back an asset or shares;
refinance to release cash or balance the allocation;
contribute the property to a company;
change the tax regime of a structure, including by switching to corporation tax where legally possible and appropriate.
Effects to quantify
For each scenario, review acquisition or contribution duties and costs, any capital gains tax, the treatment of rental income, debt and its deductibility, financing costs, future distributions, taxation on disposal, succession effects, governance and annual administration costs.
Restructuring can trigger an immediate tax charge, change the asset’s tax value or make management more burdensome. It is worthwhile only if the long-term family, economic and legal benefits outweigh those costs.
Financial investments
Portfolios, life insurance and
wealth-holding structures
Review financial assets using the same questions: ownership, beneficiaries, availability, governance, where they are held, reporting and tax on redemption, distribution or transfer.
An asset-holding company and a Luxembourg life insurance policy differ in legal ownership, access to assets, protection and taxation. The choice depends on the family’s needs, where the people involved reside, eligible assets, costs and how long the assets will be held.
Review existing foreign structures, including trusts and similar arrangements, case by case. Their classification, reporting obligations and consequences in France depend on the legal documents and how the arrangements operate in practice. These questions remain relevant after a change of residence.
Our method
A shared method with the
family’s advisers
SOL Fiscal works alongside the family’s lawyers, notaries, accountants, private banks and existing advisers in an open-architecture model. Responsibilities, sign-offs and information sharing are set out in writing, in line with professional secrecy and each party’s rules on conflicts of interest.
History and previous decisions
Coordination between France and Andorra
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1. Map the situation
People, places of residence, nationalities, matrimonial property arrangements, assets, debts, companies, contracts, previous gifts, wills and family objectives.
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2. Verify
Applicable civil law, each country’s tax rules, relevant treaties, valuations, ongoing commitments and reporting obligations.
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3. Compare
Two or three clear scenarios covering immediate costs, effects over time, risks, governance and follow-up tasks.
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4. Decide and implement
Timeline, responsibilities, legal instruments, financing, filings, supporting documents and checks before signing.
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5. Follow up
A transfer planned over several years requires monitoring legislation, case law and administrative guidance, as well as periodic reviews of commitments, residence, asset composition and governance. Once a France–Andorra project has settled, revisit the French matters covered by the agreed scope of work.
Planning estimates:
When forming a company, generally allow at least two and a half to three months to organise decisions, documents and dealings with banks, authorities and professionals. A full departure, relocation and restructuring project between France and Andorra often takes a good year to prepare, carry out and settle. These are practical planning estimates, with no statutory force or guarantee. Track third-party timelines, mandatory deadlines and the project schedule separately.
FAQ
Frequently asked questions about wealth transfers
between France and Andorra
Does living in Andorra take a gift or inheritance outside the scope of French duties?
No. France may retain taxing rights depending on the domicile of the donor or deceased, where the assets are situated and, in certain cases, where the beneficiary resided on the date of transfer and in the preceding years. Apply Article 750 ter of the French General Tax Code to the actual circumstances.
When should I start?
Start as soon as a move abroad, sale, gift, group restructuring or family change becomes likely. Allow time to compare options, collect documents, obtain valuations and coordinate advisers before a deadline narrows your choices.
Which documents should I gather?
Civil status and matrimonial property documents, wills and previous gifts, title deeds, insurance contracts, statements of assets and debts, group charts, articles of association, shareholders’ agreements, accounts, tax returns, residence evidence and contact details for your existing advisers. We then tailor the list to the case.
How do I choose between a gift, a gift with a formal division of assets and splitting usufruct from bare ownership?
The choice depends on the family’s objective, the need for income or control, the nature of the assets, each beneficiary’s circumstances and the applicable civil and tax rules. A comparison of the figures and legal effects is more helpful than a general answer.
Do I need to set up a holding company?
It depends on the circumstances. A holding company should serve a clear purpose in governance, financing, asset ownership or succession. If the existing arrangements work and are easy to understand, retaining or simplifying them may be preferable.
How can I fund a transfer or balance the allocations between beneficiaries?
Options may combine cash, debt, refinancing, distributions, equity or shareholder loans, subject to legal, tax and financial conditions. Document repayment capacity, remuneration, security and future cash flows.
What does SOL Fiscal do and what do the other advisers do?
SOL Fiscal coordinates the tax and cross-border analysis within the agreed scope, prepares comparisons and the timeline, and follows up on commitments. Lawyers, notaries, accountants, banks and specialists approve and implement the steps within their remit. Existing advisers can remain involved.
Can French gift and inheritance tax rules still apply after the move?
It can. The outcome depends on the people, the assets, how they are held and the residence history. Moving to Andorra does not automatically end French taxation.
How are follow-up and fees arranged?
The scope, professionals involved, deliverables, timeline and fees are agreed in writing. Follow-up may include periodic reviews of commitments, the structure, residence and changes in the law. A one-off engagement is also possible for a limited need.
Initial discussion
Plan before signing
A well-planned transfer puts people first, arranges the steps in the right order and keeps only the tools the family can understand and manage, avoiding unnecessary layers of structure.
We can begin with a confidential review of the family, assets, countries involved and deadlines, then determine whether to keep, simplify or reorganise the existing arrangements.
A confidential discussion to clarify the scope and next steps.
Matthieu Bech is a legal specialist in French tax law and cross-border procedures and an economist registered in his own name with the Col·legi Oficial d’Economistes d’Andorra under number 297. SOL Fiscal coordinates tax, accounting and wealth analyses within the agreed scope and, where the case requires it, works with lawyers, notaries, accountants, financial institutions and other qualified professionals. This page sets out a general method. Individual circumstances require their own assessment.