France proposes tax relief for donations and wealth transfers

The French government is introducing measures to encourage charitable giving and earlier wealth transfers. Under current tax laws applicable in 2026, individuals can benefit from a direct tax reduction of 66% on donations made to eligible organizations, capped at 20% of taxable income. For donations to organizations assisting people in precarious situations, the reduction rate increases to 75% for amounts up to a specific annual ceiling.

Additionally, the 2027 budget includes proposals for an exceptional mechanism to facilitate family wealth transfers. The goal is to encourage the circulation of savings to younger generations. Proposed measures include raising the exemption threshold for family cash gifts to 100,000 euros and applying a reduced tax rate of 6% on additional gifts up to 100,000 euros for beneficiaries under the age of 50. These temporary measures are intended to be available until December 31, 2027.