The French Tax Authorities have specified the tax regime applicable to trusts (BOI-DCJ-TRUST, BOI-ENR-DMTG-30 et BOI-PAT-ISF-30-20-30). In particular:

  • Trusts created by a company or by a group of companies for their own account are out of the scope of trusts (it is the case of trusts created by companies in order to manage employee savings or employee shares);
  • With respect to free transfer realized through a trust:
  1. The existence of a trust does not affect the application of tax treaties;
  2. The later transfer of properties put in trust is not always qualified as a taxable transfer;
  • Properties and rights of "pension trusts" are out of the scope of wealth tax.