Family gifts: up to 100,000 euros tax-exempt for the purchase of a new home or for renovations

The 2025 Finance Act established a temporary tax exemption for monetary gifts within families, provided the funds are used to purchase a new property or for energy-efficiency renovations. This time-limited measure is in effect through December 31, 2026.

The idea is not new—legislators have, in the past, created temporary exemptions to encourage family gifts earmarked for uses deemed priorities. But the measure established by the 2025 Finance Act, in effect since February 15, 2025, stands out for its scope and its conditions for use. 

It allows a donor to transfer up to 100,000 euros per beneficiary completely free of gift tax, provided that the funds are used to purchase a new home or a home under construction, or to carry out energy-efficiency renovations on a property owned by the donee.
 

The conditions are specific. The gift must consist of a sum of money and be made in full ownership to a child, grandchild, great-grandchild, or—in the absence of descendants—a nephew or niece. There is no age limit for the donor. This is a notable difference from the traditional exemption for family gifts of money (known as the “Sarkozy gift”), which is capped at 31,865 euros and reserved for donors under the age of 80.

The tax exemption is capped at 100,000 euros per donor and per recipient, and at 300,000 euros per recipient from all donors combined. A couple can therefore transfer up to 200,000 euros tax-free to a single child, subject to this overall cap of 300,000 euros.
 

New Construction or Energy-Efficiency Renovations: Strict Designation
If the gift is used for the purchase of a new home or a home purchased off-plan (VEFA), the property must be retained by the recipient for five years from the date of acquisition or completion, and must serve as either the recipient’s primary residence or that of a tenant throughout this period. 

The property may therefore be used for rental purposes, which makes the program available to donees who wish to make a rental investment. If the gift is intended for energy-efficiency renovations, these must be performed by a professional and result in an improvement of at least two classes on the property’s energy performance certificate (DPE). The renovated property must be retained for five years from the completion of the work and serve as the recipient’s primary residence; renting it out is not permitted in this case.
 

This provision can be combined with standard tax exemptions. A parent may thus give their child 100,000 euros under the standard direct-line exemption (renewable every fifteen years), 31,865 euros under the family gift of cash provision (subject to age requirements), and 100,000 euros under this temporary exemption—for a total of 231,865 euros tax-free, provided the required conditions for the use of the funds are met. 

The stakes are high for families hoping to help their children become homeowners amid persistently high interest rates and real estate prices that are struggling to come down in major cities. But the timeline is tight: the program expires on December 31, 2026.