Exemption of donation fees for housing purchases or work funding: a neglected policy measure
Unveiling the Obscure Tax Exemption:
It's surprising that a fiscal measure like the one for family donations of up to 100,000 euros for a new home, intended to stimulate investments, remains shrouded in mystery. Henry Buzy-Cazaux, the brains behind the Institute for Real Estate Services Management, expresses his dismay over this situation.
Since its inception back in February, this measure, a brainchild of the Minister of Housing, Valérie Létard, has been sailing through obstacles. The abolition of manual gift tax, up to a limit of 100,000 euros for children, grandchildren, great-grandchildren, or collateral relatives for a new primary residence or energy renovations, was a hard-fought victory. Unfortunately, despite being in place since February 15, 2025, it is still under the radar, with minimal communication about it to the public.
The measure, inspired by the real estate sector itself, boasts a history of effectiveness. It dates back to Édouard Balladur's time as Prime Minister, and its invention is attributed to Antoine Pinay, former Minister of Finance and Economic Affairs of France. Far from being a new and experimental gadget, this measure is well-grounded in reality.
However, it has been unfortunate that it has been misconstrued as a measure for the wealthy. The €100,000 ceiling might have exaggerated this notion, but in reality, many families can make use of smaller donations, such as 10,000, 20,000, or 40,000 euros, to kickstart an acquisition or investment project, or cover the ecological renovation of a house or apartment.
The low awareness of the measure can be attributed to the lack of promotional efforts by professionals within the value chain. The Ministry of Housing plans to launch an operation to promote the measure, but it falls upon the private professional actors to raise their voices and encourage mass donations leading to new home acquisitions or investments.
If the expected tax revenues from the measure are not met, Bercy might find reasons not to extend it beyond 2026. The professionals concerned may be waiting for the fiscal status of the investor, but it is urgent to make the measure relating to donations popular and to encourage French families to make full use of it.
In contrast to other devices like the zero-rate loan or the Pinel, the promotion of this measure does not address its beneficiaries directly but families that it encourages to help potential buyers. Commercial communication specialists would be well-equipped to come up with compelling slogans to promote this measure. The actors in the chain cannot afford to neglect this opportunity. In the current budgetary context of our country, it is essential to make the most of everything and not miss any favorable disposition. The success of a product, after all, depends more on its appropriation by the public than on its originality and real differentiation.
Sources:
- [1] France's Ministry of Action and Public Accounts (Ministère de l'Action et des Comptes Publis)
- [2] France's Ministry of Economy, Finance, and Industry (Ministère de l'Économie, des Finances et de l'Industrie)
- [3] France's Ministry of Action and Public Accounts (Ministère de l'Action et des Comptes Publis)
- [4] France's Paris Bar Association (Ordre des Avocats de Paris)
- [5] France's Ministry of Action and Public Accounts (Ministère de l'Action et des Comptes Publis)
- Encouraged by the success of this real-estate related tax exemption, professionals in the finance and investment sectors could emphasis its potential for personal-finance benefits, helping families make smaller donations to facilitate new home acquisitions, investments, or renovations.
- To ensure the continued existence of this measure beyond 2026, it's crucial for industry professionals to collaborate in promoting it to the public, establishing it as a valuable tool in personal-finance planning and real-estate investments, thereby meeting the expected tax revenues and securing its future.
