Will money left to animal charity face the 60% tax rate in France?
Not all charities can inherit donations in a will tax-free
The Société Protectrice des Amimaux (SPA) animal charity has many branches in France
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Reader Question: My brother-in-law, who is English, has lived in France for over 20 years and has French residency. He is making his French will and wants to know if he leaves a donation to the animal charity SPA, is the initial amount subject to the 60% Inheritance tax?
When it comes to bequests to charities in France, it is best to check with the individual charity as to its status with regard to this.
Essentially, organisations involved in ‘good works’ will either be set up as an association or a foundation, and they may or may not also have the label of being ‘d’utilité publique’ (public interest).
The first question to ask, or research, is whether the organisation is set up to receive bequests (un legs) at all, as some are not.
Read more: How do wills in France work and do I need to make one?
However, most well-established organisations doing work that would be seen as ‘charitable’ in English, will be able to accept them.
The next issue is how gifts to them are taxed.
In certain cases, the taxation is as you mention, the same as a simple bequest to an unrelated person, ie. 60% after an allowance of just €1,564. This applies if the body is not d’utilité publique.
Those recognised as d’utilité publique (which includes most larger charities) fall under two regimes: either bequests to them are taxed the same as those to a brother or sister (35% up to €24,430 and then 45%); for others there is no tax.
Read more: What is France's 'approved list' for overseas tax-deductible donations?
Specifically, as regards gifts to the Société Protectrice des Amimaux (SPA) animal charity, it is important if making such a bequest to be clear about which organisation it is made to.
In France, the main body known as SPA is the national organisation, which is based in Paris but also runs many local refuges and information centres. Bequests are tax-exempt and you can find out more from the charity itself at tinyurl.com/legs-spa.
Other bodies called SPA usually have another element in the name, such as SPA du Dauphiné (this is also tax-exempt, but if considering leaving to another ‘SPA’ it is best to check its site or speak to them directly).
You can either leave a specific gift to a charity or can leave everything to it by designating it your légataire universel.
