Aid for home ownership and housing: the donation for the purchase or renovation of the main residence

Since 2021, an allowance of €100,000 per donor has been introduced for donations for the purchase or renovation of the main residence. This system applies when gifts are made to a child, grandchild, or nephew (in the absence of descendants).

This allowance makes it possible to considerably reduce gift tax, and thus facilitate the financing of the purchase or renovation of a property. In concrete terms, this means that a parent, for example, can give up to €100,000 to their child, without the child having to pay gift tax on this amount.

However, this measure is temporary, valid until the end of 2026. It is therefore limited in time, but it remains an opportunity for families wishing to financially support a loved one in their real estate project.

It is also important to note that this €100,000 allowance can be combined with other pre-existing tax allowances. For example, the classic allowance for gifts in the direct line, which also amounts to €100,000, can be combined with the specific allowance for the purchase or renovation of the main residence.

In addition, gifts of money also benefit from an additional allowance of €31,865, which makes it possible to optimise tax exemptions for the buyer or recipient of the donation.

The tax advantages of this measure are multiple. On the one hand, it reduces the impact of gift tax for relatives who wish to help finance the purchase of a primary residence. On the other hand, it promotes home ownership by offering households a more flexible financing option, particularly in times of rising property prices and tightening credit conditions.

The beneficiaries of these donations can thus have more funds at their disposal to carry out their real estate project, whether it is a new purchase or a renovation of an existing property. The possibility of benefiting from this tax exemption is therefore an opportunity not to be overlooked for families who wish to support a loved one with a view to acquiring or improving their home.

To take advantage of these tax advantages, certain conditions must be met. First of all, it is necessary that the gift be made as part of the purchase or renovation of the beneficiary's main residence. Secondly, it is essential that the gift is formalised by notarial deed, because the taxation of gifts in France is based on strict formalities.

Finally, it should be remembered that these measures are temporary and only concern donations made before the end of 2026. Households considering using this scheme will therefore have to be vigilant about the date of their real estate project.