In this rapidly evolving digital age, the French system is rolling out and fine-tuning various initiatives to convert tax reporting into mandatory electronic formats. Whilst this will improve cross-referencing and simplify reporting, it is not always adapted to all situations.
Lifetime Gifts: Compulsory Online Reporting
Lifetime gifts are reportable on form N° 2735, generally within one month of receipt, unless a specific exemption applies.
From 1 January 2026, most lifetime gifts must be reported electronically by the beneficiaries (donees) through their secure impots.gouv.fr personal portal. The new procedure concerns most “manual” gifts (dons manuels), gifts of cash and other transactions. Failing to report online may trigger a penalty of 0.2% of the payable gift tax liability with a minimum of €60.
Gifts of real estate continue to be handled by notaires who need to update the property deed and record the new property ownership with the local land registry.
This reform is part of the French tax procedures’ ongoing digitalisation efforts and aims to:
Taxpayers should keep all documentation in case of any subsequent enquiry by the French tax authorities.
The required information includes:
The change in the reporting format does not alter French gift tax rules. Existing exemptions, allowances and filing deadlines continue to apply. Where gift tax is payable, the online platform should calculate the liability and process immediate payment.
The authorities also recently confirmed that taxpayers may, if necessary, rectify their online gift tax form up to 31 December of the second year following the year of the initial filing. However, the details listed below cannot be altered:
For rectified filing which do not affect the taxable amount and liability, taxpayers are able to obtain an immediate filing receipt.
However, any corrections which may reduce the tax liability, will be treated as a claim and processed by the Service National de l’Enregistrement (SNE) who may require extra information and supporting evidence.
Taxpayers involved in cross-border family wealth & estate planning, trust distributions, or gifts of foreign assets should seek advice to confirm the French reporting obligations and tax implications.
Unreported gifts discovered by or revealed to the French tax Administration at a later stage, become taxable as at the date and on the updated market value of when they become known to the tax office, regardless of when the gift effectively took place. This can bring potentially exempt past gifts into the scope of French gifts tax, or to French inheritance tax, if revealed at the time of the donor’s demise and probate.
This is particularly relevant for newcomers to France who generally benefit from a six-year window in which to receive gifts from donors resident outside France without triggering a French gift tax liability. This will apply if they have not been resident for that length of time in the ten-year period preceding the receipt of the gift from outside France.
Unfortunately, as matters stand, the online gift reporting does not cater for this situation. Affected taxpayers may have no other choice but to use the former paper tax form N°2735, to report these types of gifts whilst claiming for a “certificat de non exigibilité” to formally set the date of the gift and its exemption.
Electronic Invoicing & Reporting for French Companies & Businesses
1st September 2026 marks the next phase of the French electronic invoicing reform. By that date all French registered businesses with a SIRET, whether VAT registered or not, will be required to receive electronic invoices through a government-approved platform, regardless of their size.
From 1st September 2026, large and intermediate-sized companies (ETIs), will issue electronic invoices for all domestic B2B transactions between French VAT-registered businesses. Smaller and medium size VAT-registered companies including micro-businesses have until 1st September 2027 to do so. The following link provides the list of currently approved platforms: registered approved platforms . Some offer free registration & invoicing services. All platforms require the business SIREN number to complete the registration.
E-reporting obligations are also introduced for transactions that fall outside the scope of mandatory e-invoicing, such as certain cross-border sales and those to private individuals (B2C). In addition, businesses may have to report payment data to the French tax authorities where VAT becomes due upon receipt of payment.
3% Tax Reporting – French Real Estate held through Non-French Entities
The new regulation which came into force on 27th June 2026 cancels the former option for non-resident entities holding French real estate, to undertake to disclose information on the ultimate beneficial owners upon the French Tax Authorities’ request.
Instead, full reporting using a SIRET registration number, will have to be completed electronically each year by 15 May for all concerned commencing from 15 May 2027. The 3% tax filing discloses the beneficial ownership of the interposed structure, the property’s details and market value on 1st January. Where French property is owned through a chain of entities, each one must comply with the reporting to guarantee the full exemption. It should be noted that nominee arrangements are not recognised in France and may lead to extra complications.
Non-French entities that do not have a permanent establishment in France face a new requirement since they must appoint a tax representative in France to receive any communication or notification from the French authorities in relation to the 3% tax.
Omission, incomplete or erroneous filings trigger the loss of the 3% tax exemption. Where payable, the 3% tax is calculated on the fair market value of the French real estate, as at 1st January of the relevant tax year and standard interest and penalties may also apply.
Should you have any queries in relation to your French tax affairs please email French.tax@bdo.gg
This publication has been carefully prepared, but it has been written in general terms and should be seen as containing broad statements only. It cannot be relied upon to cover specific situations without obtaining professional advice. BDO is the brand name of the BDO network and for each of the BDO member firms.
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