France considers changes to family gift tax rules

The French government is considering modifications to fiscal rules regarding family donations, potentially altering how assets are transferred to descendants. Under current laws, the ‘family gift of cash’ mechanism allows individuals under the age of 80 to transfer up to €31,865 to children, grandchildren, or great-grandchildren without incurring donation taxes. This exemption can be renewed every fifteen years.

Proposed changes slated for 2027 include raising the tax-free threshold for such gifts from €31,865 to €50,000. Additionally, the government is considering a temporary 6% flat tax rate for certain family donations exceeding standard allowances, up to a limit of €100,000 per donor and adult beneficiary, replacing the current progressive tax scale. These measures have been reported by the press but have not yet been codified into law.