A Temporary Exemption for Family Gifts

To facilitate the transfer of family wealth and encourage home ownership among younger generations, the 2025 Finance Act introduces a temporary tax exemption for certain family gifts.
 

Specifically, from January 1, 2025, to December 31, 2026, cash gifts made between parents and their children, grandchildren, or great-grandchildren will be eligible for a full exemption from transfer taxes, up to a limit of €100,000 per donor and per recipient.
This exemption aims to encourage real estate investment and energy-efficient renovations, as the funds received must be used within six months for:
• The purchase or construction of a new home;
• Energy-efficiency renovation work eligible for the MaPrimeRénov’ program.
Let’s take the example of a parent who wants to help their child buy an apartment. They can give them up to €100,000 without any tax being levied on this amount, provided that the recipient uses it promptly to finance the purchase of a property or renovation work.
 

This program offers several benefits:
1. To make it easier for young households—who often struggle to save up for a down payment—to become homeowners.
2. To stimulate the real estate market, particularly the new-construction sector, which is experiencing a decline in demand.
3. To encourage energy-efficient renovations by incentivizing households to undertake projects to improve the energy efficiency of their homes.
 

However, certain conditions must be met. For example, the recipient must be of legal age, and the funds must be used for a real estate project located in France. In addition, the tax authorities may require supporting documentation proving that the funds were used as intended.
Experts estimate that this measure could stimulate up to 2 billion euros in investments over the 2025–2026 period, with a positive impact on the construction sector and the energy transition.