The 2025 Finance Act offers a great opportunity for families: it is now possible to transfer up to €300,000 without paying taxes, provided the amount is used to finance the purchase or renovation of a property. Discover the details of this exceptional scheme.
🏡 A New Opportunity to Transfer Wealth
Each parent and grandparent can now transfer up to €100,000 per beneficiary, up to a maximum of €300,000, tax-free. This exemption applies only under certain conditions, but it opens up highly advantageous prospects for families.
How Does It Work?
Unlike the standard rules for inheritance tax, this measure allows a total exemption of up to €300,000 if the funds are used for:
- The purchase of a new primary residence or one under construction (VEFA);
- Energy renovation work on the beneficiary’s primary residence;
- A new rental property investment.
Practical Example
- One parent gives €100,000;
- The other parent gives €100,000;
- A grandparent gives €100,000.
The beneficiary receives €300,000 tax-free, provided the funds are used within six months of the donation.
What Conditions Must Be Met?
To benefit from the exemption, the beneficiary must comply with the following rules:
- Invest the money in a new real estate purchase (primary residence or rental) or energy renovation work;
- Use the funds within six months of receiving the donation;
- Adhere to the program’s deadline: the exemption ends on December 31, 2026.
Can This Be Combined With Existing Allowances?
Good news: this measure can be combined with existing tax allowances.
- Each parent can give €100,000 to a child every 15 years, tax-free.
- The allowance for grandchildren is €31,865 every 15 years.
This allows for maximum tax optimization by combining benefits.
Who Can Benefit From This Exemption?
The main beneficiaries are:
- Children;
- Grandchildren;
- Nieces and nephews, if the donor has no children.
Why Is This Measure Advantageous?
This exemption has two main objectives:
- Facilitating home ownership for younger generations;
- Encouraging energy renovation of properties.
Additionally, it compensates for the end of the Pinel scheme, which was discontinued in 2024 and aimed to promote rental property investments.
Conclusion: An Opportunity to Seize Before 2026
With the 2025 Finance Act, it is now possible to transfer up to €300,000 tax-free, under certain conditions. This measure is a powerful tool for helping loved ones access homeownership or renovate their property while benefiting from an advantageous fiscal framework.
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