Your wealth is in bricks and mortar, the exemption only covers cash: you must sell before you give.
Many parents want to help their children find a home, but their wealth is in bricks and mortar: a let studio, a second home, a plot of land. Yet the €100,000 tax-free gift only applies to cash. To benefit from it, you therefore have to sell first, then give. And the timetable is tight: the scheme ends on 31 December 2026, unless an extension still under discussion is passed.
The scheme in force until 31 December 2026
Since 15 February 2025, article 790 A bis of the French General Tax Code has exempted from gift tax cash gifts made to a child, grandchild or great-grandchild (failing that, to a nephew or niece), up to €100,000 per donor and €300,000 per beneficiary. The conditions are precise:
- the money must be used, within six months, to buy a new or off-plan home as a main residence, or to fund energy renovation works eligible for MaPrimeRénov' in the main residence;
- the home must be kept as a main residence for five years;
- the expenses funded cannot also benefit from MaPrimeRénov' or a tax deduction.
This exemption comes on top of the others: the €100,000 allowance per parent and per child, renewable every fifteen years, and the €31,865 family cash gift when the donor is under 80. On the other hand, directly giving a flat or a house does not qualify for this additional €100,000.
The timetable, the real obstacle for owners
A property sale takes time: valuation, surveys, finding a buyer, preliminary agreement, then about three months until completion, while the buyer obtains their mortgage. A property put on the market at the end of October 2026 will rarely be sold before the end of the year. For a gift to be made by 31 December 2026 at the latest, in practice you must already have signed, or have other cash available and sell afterwards.
An extension is under discussion, not voted. On 16 October 2026, MPs adopted an amendment extending this exemption until 31 December 2030 and widening it to the conversion of offices or shops into homes. They also voted, for the whole of 2027, a tax-free cash gift raised to €100,000 and a reduced 6% rate on gifts to 18-50-year-olds. The vote on the first part of the budget has been postponed to early November; the Senate and a final vote in December will follow.
Putting the property on the market now means being ready whatever happens.
Selling to give: an example
Worked example: selling a studio to help a daughter buy a new-build
Fictitious case. A couple bought a studio for €100,000 in early 2011 and have already used their allowances and the family cash gift with their daughter. They sell it for €180,000 in early 2027 and each parent gives €80,000 to their daughter for a new flat, assuming the extension is voted.
| Tax and social charges on the studio's capital gain (16 years of ownership) | about €11,800 |
| Gift tax on two gifts of €80,000 at the standard scale | about €28,400 |
| Gift tax with the new-home exemption | €0 |
| Gift tax saved by the family | about €28,400 |
Calculation using the statutory flat rates of 7.5% for purchase costs and 15% for works. Without an extension, a gift made in 2027 would not benefit from this exemption.
The property sold matters too: the parents' main residence is exempt from capital gains tax, a second home or a let property is not. A let property sometimes sells for less with the tenant in place; an empty property sells better if presented at the right price. Listing mistakes cost twice here: in price, and in time.
The right questions before selling
- What is the child's project? A new home, an off-plan purchase or an energy renovation: an older home without eligible works does not count for this exemption.
- Which property to sell? The one whose sale costs the least in tax and lost income, and which will sell fastest at its fair price.
- When to give? The gift must precede the purchase or the works by no more than six months. A notarial deed gives a certain date.
- Should you wait for the budget vote? Putting the property on the market now means being ready whatever happens: if the extension is voted, the gift can follow the sale in 2027.
This measure is part of a package that could lead other owners to sell in 2027: see why some properties are about to come on the market. Selling among the first remains an advantage.
Our approach
We support families selling a property to fund a project: second home, let flat, land, a house that has become too big. The tax side of the gift is a matter for your notary; ours is to sell at the right price, within a timeframe that fits your schedule. Tell us about your project.
Frequently asked questions
Can you give a flat rather than cash?
Yes, but that gift does not benefit from the €100,000 exemption for a new home: only gifts of cash qualify.
Can the child buy an older home?
Only to carry out energy renovation works eligible for MaPrimeRénov'. Buying an older home in itself does not qualify.
Do you have to go through a notary?
It is not compulsory for a cash gift, but a notarial deed gives a certain date, useful to prove the six-month deadline.
What happens if the child sells before five years?
The exemption may be withdrawn, and the gift tax become due.
Has the scheme been extended into 2027?
Not yet. An extension to 2030 was voted by MPs on 16 October 2026, but the 2027 budget has not been adopted.
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