The french Finance Law for 2025 holds both good and bad surprises.

Among the negative aspects are the increase in transfer taxes, the reduction of the budget for the MaPrimeRénov’ scheme, and the tightening of taxation for non-professional furnished rentals. 

However, there are also good news such as the generalization of zero-interest loans and the exemption of family donations to facilitate access to housing.

What is it about? 

Article 19 ter of the PLF 2025 introduces a new Article 790 A bis to the General Tax Code (CGI), which includes a new tax allowance for all cash donations made in full ownership to a child, grandchild, great-grandchild, or, in the absence of such descendants, a nephew or niece. 

The amount of this new allowance is limited to 100,000 euros per donor and 300,000 euros per donee (who can receive from multiple donors). 

This is an additional allowance that adds to the existing ones: 31,865 euros for cash donations and a general allowance of 100,000 euros. 

Thus, by accumulating all allowances, a donee could receive up to 563,730 euros tax-free to purchase their primary residence.

Under what conditions? 

The donation must be allocated by the donee, no later than the last day of the sixth month following the transfer, to the acquisition of a new building or construction of a primary residence and/or to energy renovation works of their primary residence. 

The text requires that the property be retained for at least 5 years by the donee. 

The measure also applies to investors as long as the property in question is the primary residence of the tenant.

Until when? 

This very favorable measure will end on December 31, 2026.

And what about smokers?

It is known that the government wanted each favorable measure to be funded. 

The last paragraph of Article 19 ter specifies that this measure is offset by the creation of an additional tax on tobacco...