Legal Definitions - droit de détraction

Droit de détraction refers to a specific type of tax applied in international law. It is levied on property that has been inherited, either through a will or by legal succession, when that property is subsequently moved from the jurisdiction where it was inherited to a different state or country.

Here are some examples to illustrate this concept:

• Imagine a situation where a person inherits a valuable antique painting located in France from a deceased relative. If that heir decides to move the painting from France to their home in the United States, France might impose a droit de détraction on the painting's value because the inherited asset is being removed from French territory.

• Consider a scenario where an individual inherits a substantial sum of money held in a bank account in Switzerland. If the heir then transfers these inherited funds from the Swiss bank to their personal bank account in Canada, Switzerland could apply a droit de détraction on the transferred amount, as the inherited wealth is leaving Swiss jurisdiction.

• Suppose someone inherits a rare collection of vintage automobiles located in the United Kingdom. If the heir decides to ship this entire collection to their new residence in Australia, the United Kingdom might levy a droit de détraction on the value of the car collection, as the inherited physical assets are being exported from the UK.