In response to the challenges of homeownership, particularly among young people, the government is allowing donors to transfer up to 100,000 euros to a family member, tax-free, to help with the purchase of a new home. This is an exceptional—but temporary—tax measure.
The exemption from gift tax offers an opportunity for families wishing to help their loved ones become homeowners. Through December 31, 2026, each donor may transfer up to €100,000 to their children, grandchildren, or great-grandchildren tax-free, up to a maximum of €300,000 per beneficiary. This measure is particularly helpful for young households facing rising interest rates and strict lending conditions. With this financial support, a larger down payment can make it easier to secure a mortgage and lower monthly payments.
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Gift taxes: Who can make a gift?
Parents, grandparents, and great-grandparents can help their children and grandchildren. Uncles and aunts can also make a tax-free gift to their nephews and nieces, provided they have no direct descendants. This tax-free gift allows them to help a loved one achieve their real estate goals while avoiding the taxes associated with a traditional gift.
Requirements to be met
The donated funds must be used to purchase a new home or a home under construction (VEFA). The home must be retained for at least 5 years as the occupant’s primary residence. If it is rented out, it must be occupied by the tenant as their primary residence.
Everything you need to know about off-plan sales with Villes et Villages.
Can it be combined with the standard exemption?
This temporary measure can be combined with the standard exemption available every 15 years, thereby offering additional tax benefits. To take full advantage of this, we recommend consulting a notary to ensure the gift is properly structured. This program presents a unique opportunity to help your loved ones become homeowners. Contact us today to explore our real estate developments and bring your project to life.
