Gift Tax in France

Understand how gift tax is calculated in France...

Gift tax in France is called droits de donation and it applies to a gift (donation) that is made to another person, for example real estate or cash. There are however, many allowances and exemptions. 

Cash gifts

There are tax allowances made for gifts made between family members, and a cash gift can only be made every 15 years. 

The specific exemptions for cash gifts where the gift is made to a child, grandchild or, if there are no direct line descendants, to nieces or nephews are as follows:

  • From a parent to each child (or child to parent) - 100 000 € *
  • To a grandchild - 31 865 €  
  • To a great grandchild -    5 310 €  
  • To a disabled person - 159 325 €  
  • To a spouse or civil partner (in a PACS) - 80 724 €
  • To a sibling - 15 932 €
  • To a niece or nephew- 7 967 € 

This is provided the donor is less than 80 years old and the receiver is more than 18 years old. 

In addition, the gift should be declared and registered by the donee at their local tax office within one month of the gift. This exemption can be accumulated with other allowances, (e.g. the €100,000 from each parent for children, the grandchildren’s general €31,865 gift allowance or the €7,967 for nieces and nephews).  

A tax is due on amounts above these allowances, which ranges from 5 to 45% and can reach 60% for cash gifts to non-family members.

Property

In the case of gifts in the form of transfer of real estate, the tax allowances will depend on the type of interest in the property that is granted. It is important to get advice from a notaire before transferring real estate, and to discuss the options available. 

Further Information


Tax rates, scope and reliefs may change.  Any statements concerning taxation are based upon our understanding of current taxation laws and practices which are subject to change.  Tax information has been summarised; an individual is advised to seek personalised advice.