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[BUSINESS] · France · 15 sources

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France proposes new tax measures to facilitate family donations in 2027 budget

The French government, led by Prime Minister Sébastien Lecornu, plans to introduce temporary measures in the 2027 budget to facilitate family donations through a plan called ‘transmissions 2027’. The initiative aims to encourage the earlier circulation of private savings to assist heirs during key life stages, such as buying a home or starting a family, rather than waiting for traditional inheritance processes.

Key proposed measures include raising the tax-exempt threshold for cash gifts from 31,865 euros to 50,000 euros for donors under 80 years old giving to major children, grandchildren, or great-grandchildren. Additionally, the government proposes a temporary 6% flat tax rate on the taxable portion of full-property donations within the family circle, capped at 100,000 euros per donor and beneficiary.

Separately, government spokesperson Maud Bregeon indicated that the 2027 budget will include a full indexation of income tax brackets to inflation to prevent a mechanical increase in taxation. This comes as the executive seeks 30 billion euros in savings to reduce public debt and deficit.

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France · Matignon · Maud Bregeon · Sébastien Lecornu

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