Manual gifts made abroad: Why they may still trigger gift tax in France after you move

Thinking about relocating to France after receiving a foreign gift?
Even if your gift had no link to France at the time it was made, French tax rules may still come into play — sometimes years later.

This is one of those areas where French gift tax law is not only technical but surprisingly far-reaching.

What is a manual gift — and why does it matter?

A manual gift ("don manuel") refers to the simple physical or informal transfer of assets — often cash, securities, or valuable movables — from one person to another without a formal deed or notarial act. When such a gift is made outside of France, between non-French tax residents, and involves non-French assets, one might assume that French taxation would never apply.

However, the reality is more nuanced.

Taxation in France triggered by future residence

Under Article 757 of the French Tax Code, the taxable event for a manual gift is not the gift itself, but the moment it is disclosed — whether voluntarily by the donee, through a formal declaration, or as part of a tax audit.

In a ministerial reply published in November 2024, the French authorities confirmed that a gift made entirely outside France — between non-residents, involving foreign assets — can become subject to French gift tax if the beneficiary (the donee) becomes tax resident in France and discloses the gift after relocating.

If, at the time of disclosure, the donee meets the residence condition under Article 750 ter, 3°, i.e., has been fiscally domiciled in France for at least six out of the previous ten years, the French tax authorities may claim taxing rights over the entire gift, regardless of its origin or location.

Timing matters — and so does anticipation

This legal position significantly broadens France’s territorial reach when it comes to gift taxation. A foreign manual gift, once entirely outside the French tax net, may become taxable solely due to a change in residence and the timing of its declaration.

In some cases, such taxation can be avoided — but only if the gift is disclosed before the move, while the beneficiary still falls outside the scope of French tax residence.

Unfortunately, such anticipation is rare.
Manual gifts are often informal, sometimes years old, and the implications of moving to France are not always fully appreciated.
Yet once the move is completed and the gift is disclosed, tax exposure becomes very real — and possibly significant.

And what about tax treaties or the “right to make mistakes”?

International tax treaties signed by France in matters of succession and donation may, in some limited cases, restrict or reallocate taxing rights. But these conventions rarely apply to manual gifts made by donors who were not residents of a treaty partner country — and many conventions were drafted before France extended its taxing rights to donees under Article 750 ter.

As for the so-called right to make mistakes ("droit à l’erreur"), it only protects taxpayers from penalties and interest — not from the tax itself. And the authorities have clearly stated that it must be assessed on a case-by-case basis.

Conclusion: don’t assume — plan

For high-net-worth individuals relocating to France, the tax treatment of past foreign gifts must be carefully reviewedbefore any disclosure — or before taking up French residence. Once in France, retroactive exposure may arise in ways that are not intuitive.

At Bespoke, we assist international clients in structuring and regularising their cross-border wealth transfers in full compliance with French tax law — always with a forward-looking approach.

If you’ve received a foreign gift and plan to move to France, timing and strategy are everything.
Reach out before you move.