In summary…
Until December 31, 2026, Article 790 A bis of the French General Tax Code (CGI) allows each parent to give €100,000 tax-free to a child who is buying a new home or renovating their primary residence. Combined with standard allowances, a couple can transfer €463,730 without paying a single euro. The window of opportunity is short, and the conditions are strict.
1. What Article 790 A bis provides
Created by the 2025 Finance Law, Article 790 A bis exempts from duties gifts of sums of money made between February 15, 2025 and December 31, 2026, up to a limit of €100,000 per donor and €300,000 per beneficiary.
The beneficiary must be a descendant (child, grandchild) or, if there are no descendants, a nephew or niece. The funds must be used, within six months, to purchase a new or off-plan property intended as their primary residence, or to carry out energy-efficiency renovations on their primary residence. The property must remain their primary residence for five years.
2. The total gift amounts to €463,730
This exemption is in addition to existing provisions. Each parent benefits from a tax allowance of €100,000 per child (Article 779 of the French General Tax Code), renewable every fifteen years. Each parent under 80 years of age can also make a family gift of up to €31,865 to an adult child (Article 790 G).
Per parent: €100,000 + €100,000 + €31,865 = €231,865. For a couple: €463,730 passed on to the same child, without inheritance tax.
3. Concrete example
Situation. A couple in their 60s, a 32-year-old son who are reserving a new apartment off-plan to live in, priced at €480,000.
Issue. A gift of €463,730 outside of the temporary scheme would have been subject to duties beyond the classic allowances: each parent would have been taxed on €100,000, according to the direct line scale.
Strategy. Each parent contributes €231,865, combining the allowance under Article 790 A bis (€100,000), the allowance under Article 779 (€100,000), and the family gift allowance under Article 790 G (€31,865). The funds are paid to the notary within six months for the off-plan sales (VEFA) payment requests.
Result. €463,730 transferred, €0 in taxes. Without Article 790 A bis, the two €100,000 gifts exceeding the allowances would have cost 2 × €18,194 = €36,388.
4. The three pitfalls that cause you to lose the exemption
The six-month period begins from the date of payment of funds: a compromise signed too late negates the advantage.
The acquisition must not be through a SCI: the text refers to housing owned by the beneficiary himself.
An older property is only eligible through energy renovation work on the main residence, not for its purchase price.
5. What to do before December 31st
Align the timing of the gift with that of the acquisition, verify that the allowances under Article 779 have not been used up by a gift made less than fifteen years ago, and document the allocation of funds. Unless extended by the 2027 Finance Law, gifts made from January 1, 2027 onwards will no longer benefit from this exemption.
Frequently Asked Questions
Can one give to a grandchild under article 790 A bis?
Yes. The text applies to descendants, therefore grandchildren, and in the absence of descendants, nephews and nieces. The €100,000 limit applies per donor.
Does the exemption apply to older housing?
Not for the purchase. However, it does cover energy renovation work on the beneficiary's main residence.
What happens after December 31, 2026?
Unless an extension is voted in the 2027 Finance Act, gifts made from January 1, 2027 onwards will no longer benefit from the exemption.
Are you planning a gift for your child's purchase? Book a wealth management consultation: we'll finalize the arrangements and schedule before December 31st.
