Learn what you should know about taxes when sending large sums to France.
Whether you're helping out a loved one, paying your fees for studying abroad or putting down that payment for your Parisian pied-à-terre, getting your large money transfer to France is the easy part.
What comes after is something no one can avoid: the laws and legal paperwork that go along with transferring large amounts of money. Before you move your money out of Australia, get familiar with France's remittance laws and regulations.
How France regulates large remittances
Gift taxes are just one part of France's complicated inheritance laws, which are generally based on your relationship to the beneficiary of your gifts of cash or property. In France, children and spouses are considered equal "protected heirs", which limits how much you can legally give each.
It's possible for your French family to receive one-off gifts of cash tax free. These amounts range from $115,000 to children to about $35,000 to grandchildren and $18,000 to siblings.
Note that inheritance laws may not apply to remittances sent from another country. But given the complexity of these laws, which are deeply entrenched in legal requirements and exclusions, your loved ones will benefit from an expert in French laws when receiving large amounts of cash.
What are the penalties for not filing a large remittance?
French citizens are required to submit a déclaration des revenues each year. If your recipient fails to declare a large remittance on their tax returns, they could be on the hook for stiff financial penalties equal to 5% or more of the remittance amount. If the government determines that they've wilfully ignored the law, tax penalties can soar to a severe 50% or more.
French banks are required to record the source of large transfers and report any suspicious deposits to the government. Encourage your family and friends in France to declare any large remittance on their general tax returns.
Do I have to report large transfers out of Australia?
You won't have to report any amount of money you send to France. If the transfer is above $10,000, or it's classed as "suspicious", your bank or money transfer company automatically reports this to AUSTRAC (Australian Transaction Reports and Analysis Centre). This is the government agency set up to monitor financial transactions and to help prevent money laundering.
How will my loved ones receive my remittance in France?
Your options for sending money to France include bank-to-bank transfers, cash pickups and transfers to mobile wallets.
If picking up your money in person, your loved ones may need to submit government-issued ID or a transaction confirmation number to prove they're your intended recipient. For electronic transfers, they may not need to submit any information at all.
Confirm with your bank or independent money transfer provider the exact information your friends and family might need to receive your funds.
As with all international money transfers, be wary of potential fraud and only send money to people you know. Using a reputable provider can safeguard you from potential scams.
DISCLAIMER: This article is general advice. It does not consider your own personal circumstances and may not be applicable to you. You should obtain professional advice and consider your own situation before acting on anything contained in our article.
Compare providers for your next large transfer to France
The "Rate" and "Amount Received" displayed are indicative rates that have been supplied by each brand or gathered by Finder.
Exchange rates are volatile and change often. As a result, the exchange rate listed on Finder may vary to the actual exchange rate quoted for the brand. Please confirm the actual exchange rate and mention "Finder" before you commit to a brand.