In summary…
A couple who sell a €400,000 securities account purchased for €100,000 will pay €94,200 in capital gains tax in 2026, before even giving a single euro to their children. By gifting the securities rather than the purchase price, the capital gain disappears: the children's original purchase price becomes the value used for the gift. Four allowances of €100,000 each cover the gift. Result: €0 tax and €0 gift tax.
1. Selling then donating: tax before the donation
Capital gains on securities are subject to a single flat-rate levy: 12.8 % of income tax and 18.6 % of social security contributions in 2026, i.e. 31.4 %.
Of the €300,000 capital gain, this represents €94,200. What remains to be given has already been reduced.
2. Why the donation eliminates the capital gain
For securities received as a gift, Article 150-0 D of the French General Tax Code (CGI) uses the acquisition price as the value taken into account for calculating gift tax. Capital gains realized by the parents are never taxed: if the children sell at the same price, their capital gain is zero.
3. Concrete example
Situation. A couple in their 60s, a securities account worth €400,000 bought for €100,000. They want to help their two children.
Issue. Selling first means €300,000 capital gain taxed at 31.4% %: €94,200 in tax.
Strategy. Each parent gives each child €100,000 worth of securities. Four allowances of €100,000 each (article 779) cover the €400,000. The children then sell.
Result. €0 capital gains tax, €0 gift tax. €94,200 that remains in the family.
4. What causes the strategy to fail
Whether the money is returned to the parents through a loan, a current account, or an investment for their benefit, the tax authorities consider it a fictitious gift: this constitutes tax avoidance (Article L. 64 of the French Tax Procedures Code).
The sale agreement must be signed before the donation. The shares must belong to the children at the time the transfer is decided.
Securities resulting from a contribution-sale transaction placed under a tax deferral scheme. They are subject to specific rules, detailed in our article on the subject.’Article 150-0 B ter.
Frequently asked questions
Should the children sell right away?
No. They are free to keep the securities. Their future capital gain will be calculated based on the value retained in the donation.
How are listed securities valued?
The choice is between the last known price or the average of the last thirty prices preceding the donation (article 759 of the CGI).
Can a PEA be given as a gift?
No. The PEA is tied to its holder. The strategy targets securities held in a standard securities account.
Do you own securities with high capital gains and want to help your children? Book an appointment : we calculate the donation before any sale.
