A gift in French law
Under article 894 of the Civil Code, a lifetime gift (donation entre vifs) transfers property immediately and irrevocably to a recipient who accepts it. Article 931 requires a notarial deed, except for gifts made by handing over money or movable property (don manuel), which are then declared to the tax authorities. Since 1 January 2026, such gifts are in principle declared online from the recipient's personal space on impots.gouv.fr.
A gift of real estate is always made by notarial deed, then registered with the land registry. A gift to a child is, in principle, an advance on their share of the future estate and is taken into account when the estate is settled, at the value of the property on the date of division.
Allowances renewable every fifteen years
Gift tax is calculated on the value transferred, after an allowance that depends on the relationship between donor and recipient. Each parent can give €100,000 to each child free of tax; the allowances renew fifteen years after each gift (article 784 of the General Tax Code). Above the allowance, gifts to children are taxed on a sliding scale from 5 % to 45 %.
A separate exemption covers gifts of money of up to €31,865 every fifteen years, made by a donor under 80 to an adult child, grandchild or great-grandchild, or, failing descendants, to a nephew or niece (article 790 G). Until 31 December 2026, gifts of money used within six months to buy or build a new main residence, or to fund energy renovation of the main residence, are also exempt up to €100,000 per donor and €300,000 per recipient.
| Recipient | Allowance every 15 years | Rate above the allowance |
|---|---|---|
| Child, from each parent | €100,000 | 5 % to 45 % |
| Grandchild | €31,865 | 5 % to 45 % |
| Great-grandchild | €5,310 | 5 % to 45 % |
| Spouse or PACS partner | €80,724 | 5 % to 45 % |
| Brother or sister | €15,932 | 35 %, then 45 % |
| Nephew or niece | €7,967 | 55 % |
| Disabled recipient, in addition | €159,325 | According to the relationship |
Giving the bare ownership and keeping a life interest
French law splits ownership into a life interest (usufruit), the right to use the property or receive its income, and bare ownership (nue-propriété), the right to become full owner. Parents often give the bare ownership of a house or a rental property to their children and keep the life interest: they continue to live there or collect the rents.
Gift tax is then calculated only on the bare ownership, valued according to the donor's age under article 669 of the General Tax Code: for example 60 % of the full value when the donor is aged 61 to 70, and 70 % at 71 to 80. On the donor's death, the life interest merges with the bare ownership without any further tax. Our French guide on gifts with a retained life interest gives a worked example.
Gift-sharing between children
A gift-sharing deed (donation-partage) gives and divides property between the donor's children in a single deed, in which each of them takes part (articles 1075 and following of the Civil Code). When all the protected heirs have received and accepted a share, the values are fixed on the date of the deed: a later rise in the value of a house or fall in the value of a portfolio concerns only the child who received it.
Grandchildren can take part with their parent's agreement, receiving all or part of that parent's share. The gift-sharing deed helps preserve harmony between children, because it settles the division while the parent can still explain the reasons for it.
Forced heirship and international families
French law protects children as forced heirs (héritiers réservataires). Their reserved share is one half of the estate with one child, two thirds with two children and three quarters with three or more (article 913 of the Civil Code). The remainder, the disposable portion (quotité disponible), can be left freely. Gifts exceeding it may be reduced at the request of a child.
Within the European Union, Regulation No 650/2012 applies the law of the deceased's last habitual residence to the whole estate, unless the deceased chose, in a will, the law of a country of which they are a national. Where the applicable foreign law does not protect children, and the deceased or a child is a national or resident of an EU Member State, each child may, since 1 November 2021, claim a compensatory share from the property located in France. Our page on inheritance for non-residents completes these rules.
Life insurance and wills
The capital paid on death under a life insurance policy (assurance-vie) goes to the named beneficiary outside the estate (article L132-12 of the Insurance Code), subject to the reintegration of premiums manifestly excessive in view of the policyholder's means. For premiums paid before the age of 70, each beneficiary has an allowance of €152,500; for premiums paid after 70, a global allowance of €30,500 applies to the premiums, the interest earned being exempt. A surviving spouse or PACS partner is fully exempt.
A will distributes the disposable portion, designates a guardian for minor children and may choose the law of the testator's nationality. The notarial will (testament authentique), dictated to the notary before two witnesses or a second notary, is kept by the office and registered in the central register of wills (fichier central des dispositions de dernières volontés), which the notary settling the estate always consults. A handwritten will must be written entirely, dated and signed by the testator.
Donors and recipients living abroad
When the donor has their tax domicile in France, French gift tax applies to all property given, wherever it is located. When the donor lives abroad, only property located in France is taxable, unless the recipient lives in France and has done so for at least six of the ten years preceding the gift, in which case foreign property is also taxable (article 750 ter of the General Tax Code). Tax treaties may change these rules, and the country of residence may tax the same gift.
We review these points with your advisers abroad before the deed is signed. Donors and recipients can sign remotely through a notarial power of attorney: see remote notarial signing. For a broader review of your assets, our page on wealth planning with a French notary describes our advice service.