Real estate purchase: donations to children and grandchildren are temporarily exempt from tax

The finance law for 2025 exempts transformation rights free of charge certain family donations allocated to the purchase of accommodation. Here is what conditions.

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Well, thanks to the drop in credit rates, banks require a little less personal contribution than a year ago, it must represent at least 10% of your Real estate purchase To allow you to get a loan. This requires for example to have no less than 20,000 euros in personal contribution to finance the purchase of an apartment sold 200,000 euros. Not obvious, for a first-time actor, to have such savings. Good news, the finance law for 2025 temporarily tax exempts (of transfer rights free of charge, precisely) the sums of money given by parents, grandparents and great-grandparents to their children, grandchildren and great-grandchildren for the purchase of a home for sale in the future of completion (VEFA) or new, that is to say, built for five years at most.

If you have no children or grandchildren, this exemption is worth for donations to your nephews and nieces. It applies in the limit of 100,000 euros allocated by the same donor to the same donor (the person who receives), and 300,000 euros received by Donary. The latter must also allocate this amount to the purchase of new accommodation no later than six months after receiving it.

A cumulative measure with conventional directs in direct line

The exemption also applies if the sum of money received is assigned to the realization of Energy renovation workfunded by Maprimerenov ‘public aid, in the accommodation of which the donor owns and which he uses as a principal residence for at least five years after their completion. In the same way, the donor who buys new or VEFA accommodation must use it as main residence For at least five years from the date of acquisition, or rent it as a principal residence for minimum, to be exempt from donation to the donation received. Note that the donor cannot rent the accommodation to a member of his tax household, for example to one of his children, otherwise he loses the benefit of the tax exemption.

This will apply to the sums of money given the day after the promulgation of the finance law for 2025 and Until December 31, 2026. Is it cumulative with the measure which allows each parent to give 100,000 euros to a child without him having to pay transfer rights free of charge? “In my opinion, yes”, Responds Nathalie Couzigou-Suhas, notary in Paris. “A priori, yes”adds Karen Berdugo, tax lawyer in Paris.“”The two measures are cumulative“Confirms Pascal Boulanger, president of the Federation of Real Estate Promoters, who requested this exemption from the public authorities since the start of the sector crisis, more than two years ago. A similar exemption had emerged under the Balladur government during the real estate crisis in the early 1990s.