A donation is a legal contract where one person (the donor) transfers ownership of property to another (the donee) during their lifetime. For a valid donation under French law, the donor must be of sound mind, at least 16 years old, and have full legal capacity over the property—meaning they can freely exercise rights and obligations.
Donations can involve real estate (houses, land), personal property (furniture, vehicles, artwork, jewelry), or cash. This transfer of assets triggers state taxes, governed by specific rules that balance fairness and family support.
French tax authorities assess the value of donated goods, apply an allowance based on the donation type and donee's relationship to the donor, then tax the remainder on a progressive scale from 5% to 45%. Certain donations qualify for full exemptions or reductions, promoting generational wealth transfer and economic activity.
Cash gifts are taxable on the amount received and must be declared within one month. Key exemptions include family cash donations (via check, bank transfer, money order, or cash) up to €31,865; gifts to terrorism victims within one year of the incident; and annuity reversions among direct-line heirs.
Real estate donations are generally taxable, but fully exempt if the property is a classified historical monument. Partial exemptions apply in specific cases: properties bought new between June 1993–December 1994 or August 1995–December 1995; rental units acquired August 1995–December 1996; new residential buildings permitted September 2014–December 2016 and donated before 2020; or building land, forests, and agricultural properties.
Donations of sole proprietorships or company shares and stocks are fully exempt, encouraging business continuity.
The state may grant exemptions on a case-by-case basis for artworks, books, historical documents, or collectibles of cultural value.
Allowances depend on ties: €80,724 for spouses or PACS partners; €100,000 for parents or children; €31,865 for grandchildren; €5,310 for great-grandchildren; €15,932 for siblings; €7,967 for nephews/nieces.
Reductions are available under conditions: for donees with 3+ children on direct-line gifts before January 1, 2017 (€610 off per extra child from the third, or €305 otherwise); €305 for war-disabled recipients; and 50% on business assets if the donor is under 70.
