French dismemberment scale 2026: Article 669 CGI, calculation and tax implications

The French statutory dismemberment scale is one of the most precise planning tools in French wealth law, yet it is regularly misread — both by individuals and by advisers unfamiliar with French tax rules. The scale itself (a table of percentages by age) is straightforward. What matters is understanding when it applies, when it does not, and what happens at the boundaries between the statutory scale and the economic (actuarial) calculation used for temporary dismemberment.

At Hayot Expertise, we advise French residents, non-resident property owners, and internationally mobile clients on dismemberment structures across real estate, company shares, and financial assets.

Last updated: 25 May 2026

Direct answer. The French dismemberment scale (Article 669 of the General Tax Code, "CGI") allocates the tax value of an asset between usufruct (right of use and income) and bare ownership (right of disposal) based on the usufructuary's age, in ten-year brackets from 10% to 90%. It is mandatory for gift and inheritance taxes ("DMTG"), registration duties, and applies to IFI (the French wealth tax on real estate). For fixed-term (temporary) dismemberments, a separate actuarial calculation applies under Article 13-5 CGI.

Article 669 CGI establishes a mandatory statutory scale for life interests ("usufruit viager"). Neither the taxpayer nor the French tax administration ("DGFiP") may substitute a market value or negotiated allocation for these percentages when calculating DMTG or registration duties.

The scale was designed to create predictability and to limit tax arbitrage between parties. It applies regardless of the nature of the asset: residential or commercial real estate, SCI shares, operating company shares, financial portfolios, or bare land.

Source: Article 669 CGI – Légifrance

The table below sets out all nine age brackets. The age used is the usufructuary's age on the date of the deed (donation, declaration of succession, or sale). Many simplified tables omit the last two brackets (81–90 and over 90), which remain practically relevant for elderly surviving spouses retaining a life interest.

A parent aged 65 at the date of the notarial deed gifts the bare ownership of a Paris apartment valued at €400,000 to their child, retaining the life interest.

Applying the scale:

• Applicable bracket: 61 to 70 years
• Usufruct value: €400,000 × 40% = €160,000
• Bare ownership value: €400,000 × 60% = €240,000

Gift tax calculation:

• Taxable base: €240,000 (bare ownership only)
• Direct-line allowance (€100,000 in 2026 — subject to legislative update)
• Net taxable base: €140,000
• Estimated gift tax: approximately €18,000–€26,000 depending on the applicable progressive bracket

Without dismemberment, the taxable base would have been approximately €300,000 (full value less the allowance), resulting in substantially higher duties. The timing relative to the donor's age bracket is therefore a genuine planning variable.

The Article 669 CGI scale applies only to life interests (usufruit viager), where the duration depends on the usufructuary's life. When the dismemberment is temporary (fixed term, independent of the usufructuary's life), an actuarial economic calculation applies, particularly under Article 13-5 CGI.

Why this distinction matters in practice: UK advisers working with French-resident or French-property-owning clients sometimes assume the statutory scale applies universally. A fixed-term transfer of usufruct over company shares to a holding company, for example, is not governed by Article 669 CGI alone. The income tax consequences under Article 13-5 CGI can be material and should be assessed before any such structure is put in place.

The IFI (impôt sur la fortune immobilière) treats dismembered assets differently from DMTG. Under Article 968 CGI (to be verified against current text), the usufructuary is generally liable to IFI on the full ownership value of the dismembered real estate asset. The bare owner is not separately liable for IFI on those assets, subject to specific statutory exceptions.

Key points for international clients:

• French IFI applies to non-residents who own French real estate (directly or through certain structures) above the applicable threshold
• Dismembered SCI shares are included; the deductible liabilities follow specific IFI rules distinct from DMTG
• The quasi-usufruit regime (e.g., surviving spouse retaining usufruct over all assets) creates a different IFI allocation — professional advice is essential

See our related article: Bare ownership and usufruct: how to optimise real estate.

When both usufructuary and bare owner agree to sell the asset, the sale proceeds must be distributed using the Article 669 CGI percentages as at the date of sale. Neither party can deviate from this allocation without documented economic justification.

Each party then calculates their own capital gains ("plus-value") on their respective share of the proceeds. The French capital gains regime (with taper relief for long-held real estate) applies separately to each.

Practical note for UK advisers: French capital gains on real estate are subject to both income tax (19%) and social levies (17.2%), totalling 36.2% before taper relief. Non-residents are subject to the same rates. Where a double taxation treaty between the UK and France applies, relief may be available — but the treaty position should be reviewed for each client's facts.

Temporary dismemberment structures — where an individual transfers a fixed-term usufruct over company shares to a corporate entity — have been used to redirect dividend income. The French legislature introduced Article 13-5 CGI to restrict this planning.

The key rule: where a fixed-term usufruct over shares or units is created for consideration by an individual in favour of a legal entity subject to French corporation tax, the income attributable to the usufructuary is taxed at the individual's rate in the relevant income category, without the benefit of the dividend regime (the 40% rebate or the flat tax at 30% — subject to current rules).

This provision is monitored closely by the DGFiP. Structures relying on temporary dismemberment for tax purposes require careful prior analysis. See also: Quasi-usufruit: avantages et inconvénients.

• Confirm the usufructuary's exact age at the date of the deed and the applicable bracket
• Identify whether the interest is life (Art. 669 CGI) or temporary (Art. 13-5 CGI)
• Establish the nature of the asset and any specific valuation rules
• Verify available gift tax allowances and whether the 15-year renewal period has elapsed
• Assess IFI exposure for the usufructuary
• If a future sale is contemplated, plan the price allocation in advance
• Obtain a notarial deed for real estate gifts (mandatory in France)
• Seek coordinated French tax and, where relevant, UK or international tax advice

For a broader strategy discussion: How to optimise your wealth.

French dismemberment law has no direct UK equivalent. The closest analogies are life interests in trusts or interests in possession, but the legal and tax treatment differs materially. French law creates real property rights (droits réels) that arise from private agreement or notarial deed, not from a trust instrument. There is no trustee; the usufructuary and bare owner deal with each other directly, subject to Civil Code obligations (Articles 578 et seq.).

For French non-residents with French real estate or company interests, the French statutory dismemberment scale applies regardless of the country of residence. French DMTG and IFI rules are territorial and apply to French-situated assets in most cases. Treaty protection varies by country and treaty vintage.

The information in this article describes the general legal framework as at May 2026. It does not constitute personalised tax or legal advice. Tax rates, allowances, and legislative provisions are subject to change. Each situation requires analysis of the specific facts, applicable treaty positions, and current law.