New tax exemption for real estate gifts

A temporary tax exemption for gifts made to descendants for real estate purposes has been introduced under the 2025 finance law. The measure allows parents and grandparents to transfer up to 100,000 euros per donor and 300,000 euros per beneficiary, but only if the funds are used for specific real estate projects. The exemption is in effect from February 15, 2025, until December 31, 2026.

Conditions for using the gifted funds

To benefit from the tax advantage, the beneficiary must use the received money no later than the last day of the sixth month following the payment. They can either purchase a new property or a property for sale in the future state of completion (VEFA), or finance eligible energy renovation work under MaPrimeRénov' in a property that the beneficiary owns and constitutes their primary residence.

Restrictions on real estate investment companies

The government has clarified that the exemption does not apply when the real estate operation is conducted through a real estate investment company (SCI). This means that transferring the received funds to an SCI, even a family one, does not allow the beneficiary to benefit from the tax advantage. The same rule applies if the beneficiary lends the money to the company, for example through a partner's current account.

Combining exemptions with existing gift reductions

This exemption can be combined with the usual reductions on gifts, including the 100,000 euro reduction applicable between a parent and child, which is renewable every 15 years. However, if the property belongs to an SCI, its associate cannot benefit from the exemption for the amounts given to finance energy renovation work, since they are not personally the owner of the property. The government emphasized that this favorable device is an exception to the general law and must be interpreted strictly.