Family Money Gifts:
A Temporary Tax Exemption
for Home Purchases and Energy Renovations
Family Money Gifts: A Temporary Tax Exemption for Home Purchases and Energy Renovations
The 2025 Finance Bill brings some great news for families wanting to help their loved ones buy a home or renovate their property. Starting from 15th February 2025, a new scheme will allow certain family money gifts to be exempt from donation tax, provided specific conditions are met. This measure aims to make homeownership more accessible, encourage energy-efficient renovations, and make it easier to pass on family wealth.
A Temporary, Time-Limited Scheme
This tax exemption is available until 31st December 2026 and allows parents, grandparents, and other family members to give money without it being taxed, as long as the money is used for a specific purpose: buying a new property (or one that’s still under construction) or funding energy renovation work on a primary residence.
Who can make a gift and who can receive It?
The donor can be:
- A parent (mother or father),
- A grandparent,
- A great-grandparent,
- An uncle or aunt (but only if they don’t have any children themselves)
The recipient must be a child, grandchild, great-grandchild, or, in some cases, a niece or nephew.
Amounts and how the money can be used
There are two main financial limits to the exemption:
- A donor can give up to 100,000€ to each recipient without paying donation tax.
- A recipient can receive a total of 300,000€ in exempt gifts, no matter how many family members contribute.
The money must be used within six months for purchasing or building a new property, or for energy renovation work that qualifies for the MaPrimeRénov’ scheme.
The 5-Year holding condition
To keep the tax exemption, the recipient must hold on to the purchased or renovated property for at least five years from the date of acquisition or completion of the work. If the property is sold or the condition isn’t met, the tax exemption will be revoked.
Impact on the property market and energy renovations
This measure is designed to help revive the property market, particularly for new homes, which have seen sales drop in recent years. It also encourages property owners to carry out energy-saving renovations, supported by government schemes like MaPrimeRénov’.
This exemption is part of a wider government push to help people get on the property ladder, including expanding the Zero-Interest Loan (PTZ), which is now available across the country.
Conclusion: A helpful boost for families
This new tax exemption for money gifts gives families a fantastic opportunity to help loved ones buy a home or fund renovations without worrying about taxes. Just make sure to follow the guidelines on how the money should be used to keep the benefit. Valid until 2026, this measure is a real boost for homebuyers and those looking to improve the energy efficiency of their homes.
As handholders and registered real estate professionals in Southwest France, we’re here to help you navigate the exciting opportunities this new tax exemption brings. Whether you’re looking to buy a home or fund energy renovations, we offer expert guidance every step of the way. Don’t hesitate to reach out for more details or personalized advice—let us make your property journey in France seamless and successful!
