Amendment extends donation exemption

The French National Assembly approved an amendment on Friday, October 16, extending the temporary increase in the family donation exemption from 150,000 euros to 50,000 euros until December 31, 2027. The change was proposed by LR deputy Philippe Juvin, who argued that the original six-month deadline was too short for families to adjust and make necessary donations.

Amendment passes in chaotic budget process

The amendment was approved as part of a turbulent budgetary process, during which 71 other amendments had already been passed. Similar proposals had been rejected in the previous year, prompting the government to use the 49.3 procedure, which allows budget approval without a full parliamentary vote. The government did not take a firm stance on Juvin’s amendment but suggested it might be included in the final budget using the 49.3 procedure, though this remains uncertain.

Another amendment approved with uncertain future

An additional amendment, proposed by Éric Ciotti, which would temporarily increase the exemption to 100,000 euros, was also adopted. However, this amendment is less likely to be included in the final version of the budget compared to Juvin’s proposal.

Current donation exemptions in France

Currently, the exemption for monetary gifts to children, grandchildren, and great-grandchildren in France is 31,865 euros, with a 15-year limit on the exemption. This amount can be combined with other tax reductions. For spouses or PACS partners, the exemption is 80,724 euros, also with a 15-year limit. Children receive 100,000 euros per child, while grandchildren receive 31,865 euros each, and great-grandchildren receive 5,310 euros each. Nieces and nephews receive 7,967 euros each, provided the donor is under 80 years old and the beneficiary is an adult or emancipated minor. The amount given must be reasonable in relation to the donor’s income or assets.