In principle, following a death, the heirs have 6 months to pay the inheritance tax. However, they can ask the tax authorities, when filing the inheritance tax return, for either a split payment or a deferred payment, depending on the case. These arrangements are subject to interest due to the Treasury.
Deferred or fractional payment It depends on the estate
For "classic" successions, only a fractional payment of the inheritance tax can be requested. This payment facility is granted over a maximum period of one and a half years (i.e. 3 payments spaced 6 months apart). Exceptionally, it can be extended to 3 years (i.e. 7 installments spaced 6 months apart), if the estate assets include at least 50% of non-liquid assets.
For estates with bare ownership, the law provides for a deferred payment method. The payment of the duties can then be postponed until the expiration of a maximum period of 6 months from the date of the reunion of the usufruct and the bare ownership, or from the date of the total or partial transfer of the latter.
Increased interest
Whether the payment is deferred or split, interest must be paid to the Treasury. Interest is calculated on the basis of the average effective rate charged by credit institutions for fixed-rate real estate loans. In 2023 the rate charged is 1.7% (compared to 1.2% in 2022). This rate is reduced to 0.5% for certain business transfers (compared to 0.4% in 2022).
Source : ECOT2237460V : JO du 28-12-2022 texte n° 140
