Boost Your Wealth: Our Tips for the End of the Year.

As December 31 approaches, there’s still time to take action to optimize your wealth management and reduce your tax burden. Here are the key steps to consider, based on recommendations from wealth management experts.

Before December 31, these measures offer concrete opportunities to reduce your tax liability, plan for the transfer of your estate, and optimize your investments. Don’t wait—consult a notary or financial advisor today to make the most of the current tax provisions.
 

1. Take Advantage of Tax Exemptions for Gifts
Gifts made before the end of the year allow you to plan for the transfer of assets while benefiting from available tax exemptions. For example:
• Each parent can transfer up to €100,000 per child every 15 years, either as full ownership or bare ownership—ideal for assets with unrealized capital gains (stocks, securities, etc.).
• Grandparents can gift up to €31,865 to their grandchildren—a particularly valuable benefit, as this exemption does not apply in the event of an inheritance.
If a notary is unavailable to draft a deed before December 31, these gifts can be formalized using Cerfa Form No. 2735, which can be submitted online or at a public finance center.
 

2. Giving customary Christmas gifts
Christmas gifts, considered “customary gifts,” do not require a declaration or payment of duties, provided they are reasonable in relation to the giver’s assets. This simple gesture allows you to give a gift without formalities while marking a festive occasion.
 

3. Take Advantage of Life Insurance Benefits
Redemptions from life insurance policies allow you to benefit from annual tax deductions:
• €4,600 for a single person and €9,200 for a couple on gains taxed at 7.5% (after holding the policy for 8 years).
• For taxpayers subject to the potential high-income tax surcharge (incomes exceeding €250,000 for a single person), redemptions made in 2024 would be exempt from the new 20% differential tax. This is an opportunity not to be missed before 2025.
 

4. Optimizing the Management of Capital Gains and Losses
Investors with securities accounts can optimize their tax situation by selling securities at a loss to offset capital gains realized in 2023. Excess capital losses can be carried forward for the next 10 years, a useful strategy for reducing future taxes.
 

5. Anticipating Tax Changes for Real Estate
Effective January 1, 2025, depreciation on non-professional furnished rental properties will be added back to the cost basis upon sale, thereby changing the tax treatment of these properties. It may be advisable to finalize a sale before the end of the year to take advantage of the current tax regime.
 

6. Consider Contributions to a PER
For taxpayers eligible for the special tax on high incomes, contributions to a Retirement Savings Plan (PER) can further reduce income tax for 2024 while helping them plan for the future.