Usually, when a donor makes a gift, it is subject to gift tax. However, there are exceptions that allow partial or full relief from this taxation. Among the most common are the €100,000 exemption for gifts made in a direct line (e.g., from parent to child), and Article 790 G of the French Tax Code (known as the "Sarkozy Gift"), which allows a donor under 80 years old to give up to €31,865 to an adult descendant. In addition to these existing mechanisms, Article 71 of the 2025 Finance Law has introduced a new tax exemption of up to €100,000! The Finankap Group team breaks down this new legislation.

This new scheme is designed to facilitate access to home ownership. It applies to family cash donations made from February 15, 2025, and used either for purchasing a property or carrying out energy-efficient renovation work on an existing home.

Who is eligible for this exemption?

The donor must be a direct ascendant of the recipient — that is, a parent, grandparent, or great-grandparent. However, an aunt or uncle may also qualify, provided they have no descendants.

There are two key financial limits:

• A maximum of €100,000 per donor per recipient
• A total limit of €300,000 per recipient

Once the donation is made, the recipient has 6 months to use the funds. After that, for a 5-year period, the property:

• Must be used as the recipient’s main residence, or
• Must be rented out, on condition that the tenant uses it as their main residence

Important: The property cannot be rented to a member of the donor’s household for tax purposes.
Failure to comply with the 5-year condition will result in revocation of the tax exemption.

This tax benefit is available until December 31, 2026, unless extended by future legislation.

Going further…

This new exemption does not apply to funds used in connection with:

• The tax credit for home employment services
• Tax-deductible expenses for income tax purposes (e.g., rental income deductions)
• The MaPrimeRénov’ energy renovation subsidy

In principle, this exemption can be combined with the Sarkozy Gift, provided the eligibility conditions of both laws are met. It can also be added to the €100,000 direct-line exemption, which is renewable every 15 years.

Choosing to make donations should be part of a broader estate and wealth strategy. To make the most of these tax-efficient opportunities — and to implement a personalized wealth management plan — don’t hesitate to contact our firm.

In a changing world, Finankap Group is here to bring your ambitions to life.