A gift involves transferring personal property or real estate to one or more people of one's choice during one's lifetime. It is governed by specific inheritance and tax rules.
- It must comply with the reserved share, that is, the portion of the estate that must be passed on to the heirs.
- If the gift involves personal property (money, a vehicle, a painting, etc.), it is not necessary to involve a notary. However, if it involves the transfer of real estate, a notarized deed must be drawn up.
- There are various types of gifts: simple gifts, gifts by partition, gifts to the surviving spouse, gifts with a reserved usufruct… each with its own specific characteristics.
- The beneficiary must pay gift tax, which is calculated based on the amount remaining after applicable deductions and exemptions.
What is a donation?
A gift refers to the act by which a person, known as the donor, transfers ownership of property during his or her lifetime to another person of his or her choosing (the donee) without compensation (without any exchange of money between the two parties). It may involve personal property (furniture, money, a vehicle, etc.) or real estate (a house, an apartment, land, etc.), which must have been acquired by the donor and be in his or her possession.
To whom can we make a donation?
You can make a donation to the person of your choice, namely:
- one or more members of your family (child, grandchild, etc.);
- the person you live with as a couple;
- a person outside the family;
- an organization.
Specific Conditions
For the act to be valid, the following conditions must be met:
- The donor must be of legal age (or emancipated), of sound mind, and have the legal capacity to manage his or her property;
- The donee must explicitly (rather than tacitly) accept the gift.
Inheritance Rules
A gift is subject to the rules of inheritance, meaning that it must give priority to the transfer of assets to the heirs entitled to a reserved share (spouse or children).
If you are considering making a gift to someone outside your family, it may only be made from the disposable portion of your estate.
Available room when children are present
What are the different types of donations?
There are many different types of donations. Here are the most common ones.
Gift by manual deed or notarized deed
A Gift by Hand
A manual gift involves personal property (furniture, works of art, sums of money, etc.). It is made directly from one person to another or from one account to another, without the involvement of a notary. However, as of January1, 2026, it is mandatory to notify the tax authorities by filing an online declaration through your Public Finance account, unless you are exempt.
A Gift by Notarized Deed
A gift must be recorded in a notarized deed in the following cases:
- if it relates to real property or real property rights;
- if the gift is made between spouses;
- in the case of a shared gift, a legal act that allows an individual to plan ahead for succession by managing the partial or total transfer of their estate.
The Different Types of Donations
- A simple gift immediately transfers ownership of the property.
- A shared gift allows a person to transfer assets among several heirs during their lifetime as an advance on their estate.
- A gift to the surviving spouse enhances the rights of the surviving spouse.
- A gradual gift allows an asset to be transferred to several people in succession.
- A gift with a reservation of usufruct allows the donor to retain the right to use the property while transferring bare ownership.
What are the tax rules for gifts?
Gifts are taxed after any applicable deductions and/or exemptions have been applied.
The deduction
The donee must pay gift tax on the property received. This tax is calculated after applying a potential exemption to the value of the property, the amount of which varies depending on the relationship or the status of the recipient.
TaxExemptions Applicable to Gifts Based on the Relationship or Status of the Recipient
Data collected from the economie.gouv.fr website in May 2026; subject to change.
The Tax Schedule
The amount remaining after the deduction is taxed according to a tax schedule that takes into account the relationship between the donor and the donee.
Directly, or between spouses or civil union partners
The tax rates applied to the amount of a gift made in the direct line of descent between spouses or civil union partners vary depending on the amount.
Data collected from the economie.gouv.fr website in May 2026; subject to change.
Between collateral relatives or between non-relatives
Similarly, the tax rates applied to the amount of a gift—whether to collateral relatives or between non-relatives—depend on the amount remaining after the deduction.
Data collected from the economie.gouv.fr website in May 2026; subject to change.
Tax Exemptions for Monetary Gifts Within a Family
Certain gifts are exempt from gift tax. This applies to gifts of money to a family member (child, grandchild, great-grandchild, etc.).
This means you can give up to €31,865 every 15 years to a family member without that person having to pay gift tax.
Furthermore, if this family gift of money is intended for the purchase of a new primary residence or one under construction, as well as for energy-efficiency renovations to the property, it is exempt from transfer taxes up to a limit of €100,000 per donor and €300,000 per recipient, provided that the property is retained for at least five years.
This exemption is intended to be temporary and applies to amounts paid between February 15, 2025, and December 31, 2026, according to the website economie.gouv.fr
Who pays the gift tax?
As a general rule, gift taxes are paid by the donee in a single payment at the time the tax return is filed. However, they may also be paid by the donor, without the amount being included in the gift.
What are the benefits of making a donation while you're still alive?
Making a donation while you are still alive has several advantages.
Planning for the Transfer of Family Assets
This allows you to plan your estate by passing on your assets according to your wishes and to avoid potential family disputes.
Reduction in Inheritance Taxes
By making a donation during your lifetime, you can take advantage of favorable tax provisions (deductions and exemptions).
Support for Family Members
Donating money can also help children purchase their primary residence, pursue their education, or work toward a career goal.
How do you make a donation?
The steps you need to take to prepare for the gift will depend on the nature of the asset you wish to transfer.
- If the property is personal property (a painting, a sum of money, etc.), you can make a direct gift without involving a notary.
- If, however, the gift is real estate, you must record the gift in a notarized deed.
What are the formalities involved in a notarized gift?
To complete the donation, the notary—whose role is to ensure the secure transfer of assets—will:
- verify the legal capacity of the parties;
- draft the document itself;
- register it with the authorities;
- calculate and collect gift taxes.
What are the costs associated with a notarized gift?
You will be required to pay notary fees, which include:
- the notary's fees, the amount of which is proportional to the full ownership value of the donated property;
- the land registration tax;
- the property security fee.
Sources