Exceptional Gift to Help Relatives Purchase or Renovate Property

Exceptional Gift to Help Relatives Purchase or Renovate Property

In order to facilitate access to homeownership, an exceptional tax-free allowance of €100,000 has been introduced in respect of gratuitous transfer duties, subject to the condition that the funds are used either to purchase a new property or to finance energy renovation works on a dwelling.

1. Who May Benefit from This Gift?

The donee benefiting from the funds may be a child, grandchild or great-grandchild, whether of full age or a minor. In the absence of lineal descendants, a nephew or niece may qualify.

2. What Form Does This Gift Take?

The gift takes the form of a sum of money, which must be used within six months, subject to a final deadline of 31 December 2026.

3. What Types of Property Are Eligible?

The donee must use the entirety of the funds received to purchase a new property.

The following are excluded:

• the construction of a detached house;
• student residences;
• care homes and assisted-living facilities;
• the acquisition of property subject to dismemberment of ownership or held in undivided co-ownership;
• the contribution of assets to a Société Civile Immobilière (SCI).

Renovation works must be eligible under the MaPrimeRénov’ scheme (for example: replacement of heating systems, insulation works).

4. Combining Allowances on Gratuitous Transfer Duties

In practice, a child may benefit from the standard allowance of €100,000 from each of their parents (totalling €200,000), plus the exceptional allowance of €100,000, giving a combined total of €300,000.

This allowance may further be combined with the allowance applicable to cash gifts made by an ascendant under the age of 80 to an adult child or grandchild (€31,865).

WARNING: Any advantage conferred upon one of your children or grandchildren may give rise to an imbalance in the distribution of your estate upon your death.