Sign up & start saving!
Get our weekly newsletter for the latest in money news, credit card offers + more ways to save
Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
Tax guidelines and regulations for large money transfers into France
Let's talk taxes on your large transfers to la France.
Guides
Exchange Rates
France imposes a tax on large monetary gifts, and if you’re transferring money to someone who resides there they’ll be responsible for filing. The US also imposes a gift tax on the sender, but you won’t have to pay unless you’ve gifted more than $11.18 million in your lifetime.
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.
It’s possible for your French family to receive one-off gifts of cash tax-free. These amounts range from €159,325 for gifts to a family member with a mental disability to €5,310 for a gift to a great-grandchild. To find out exactly how much you’ll need to pay in taxes, check the French tax code.
Given the complexity of these laws that 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 if the money isn’t a gift?
If you’re sending money for a purchase, the recipient will need to pay value-added tax (VAT) to the French government.
If the money is for a loan, things get much more complicated, and whether your recipient needs to pay taxes depends on factors such as the interest rate, purpose of the loan and your relationship to the borrower. It would be a good idea to consult an expert in French tax laws if you’re loaning someone a large sum of money from overseas.
Send money to France with OFX
OFX has no maximum limit transfers, with competitive exchange rates for 45+ currencies.
- Support for 55+ major and exotic currencies
- Competitive rates and no transfer fees
- Multiple transfer options include forward contracts and limit orders
Compare providers for your next large transfer to France
What are the penalties for not filing a large remittance?
Just as US citizens are required to submit annual tax returns, 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 willfully 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 the US?
Possibly. If you’re sending a gift of more than $15,000, conducting a business transaction of more than $10,000 or transferring the money to a French account in your name, you’ll likely need to file with the IRS.
The US government monitors transactions into and out of the country. With more focused attention on money transfers since 9/11, if you fail to report a remittance of $10,000 or more, it will likely be discovered.
By law, banks report all large cash transactions and any amount that raises an eyebrow. Money transfer businesses, which often solely send money between countries, sometimes have reporting thresholds as low as $1,000.
Sending a lot of money out of the country? Know what the IRS expects of you.
How much money can I send to France?
There’s no legal limit to how much you can send to France. However, some transfer providers will impose their own limits. If you’re planning a large transfer, use a provider with no cap, such as XE.
How can my recipient in France get the money?
Depending on which provider you choose, your recipient can have the money deposited directly into their bank account or mobile wallet or they can pick up the cash in person.
If picking up the money in person, your recipient may need to submit government-issued ID or a transaction confirmation number. Confirm with your bank or independent money transfer provider the exact information your friends and family might need to receive your funds before sending.
Bottom line
If you’re over $10,000 to France, you’ll likely have to let the IRS know, even if you don’t owe any taxes. And your recipient may have to pay a tax in France, though the exact amount will depend on how much you’re sending and how you’re related to them.
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.
Frequently asked questions
More guides on Finder
-
Tax guidelines and regulations for large money transfers to Hong Kong
Sending a large money transfer to Hong Kong? Learn about laws and required documentation before you transfer.
-
How do we pick the top money transfer services?
Our top picks are our selection of the best money transfer services, based on our extensive research and market experience. Here’s how we choose them.
-
WorldRemit users can now transfer money to anyone with Alipay
New partnership cuts out the need to have money picked up at an agent location by connecting app to app.
-
TransferMate review
Learn about how TransferMate’s personal product works and what it can do for you.
-
XE vs. OFX money transfers
Check out this side-by-side comparison of XE and OFX to find out which provider offers the best value on international money transfers.
-
Review: WireBarley international money transfers
If you’re thinking of sending an international money transfer with WireBarley, check out our review of its exchange rates, fees and pros and cons.
-
Revolut vs. TransferWise
Can Revolut be effectively used for international money transfers? We compare it with TransferWise to see where Revolut excels and where it doesn’t.
-
Azimo vs. TransferWise
We compared Azimo and TransferWise on fees, speed and exchange rates, and found some big differences. Learn what to expect and see how each one stacks up.
-
Xpress Money review
This provider offers fast transfers — but only if you live in Chicago. Learn what to expect and what other options are available across the US.
-
Safe ways to transfer money internationally
Compare cashier’s checks, international money orders, money transfer services, and more.
Ask an Expert
I was told by one money transfer rep that there is limit of 10k euros that I can send to a recipient in France. Another rep told me that the limit of 10k is to the recipient. Which one is it? I am the limit or the recipient is the limit? I was told it’s 10 k in 6 months… Thank you in advance.
Hi Reema,
Thanks for getting in touch with finder.
Generally speaking, the transfer limit applies on the sender. If the sender can send 10K Euros, then it follows that the recipient won’t be able to receive 10K Euros as well.
Every money transfer service provider has their own terms and conditions. So, it would be a good idea if you directly get in touch with them to get a more personalised answer.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua