Temporary Tax Breaks in Real Estate Transfers and New Housing
The Finance Act introduces a new exceptional tax reduction for monetary gifts intended to finance new housing. This temporary measure combines family wealth transfer, real estate stimulation, and asset optimization.
A Tax Lever to Boost Housing
In a stagnant real estate market, the government is banking on family solidarity. A temporary exemption now complements the traditional donation schemes to encourage individuals to support their relatives in buying or building a new home. The idea: turn private savings into a driver for economic recovery while facilitating the transfer of wealth.
Presented by Lazard Frères Gestion, this measure, included in the 2025 finance law, follows a dual economic and social logic: reactivating construction and easing intergenerational transfers. It comes in a context of still high interest rates, tightened credit conditions, and a decline in new housing (-40% in new construction starts since 2022).
Specifically, the measure allows a parent, grandparent, or relative to make a cash donation (cash, transfer, check, or money order) with a specific exemption, provided the amount is used to acquire or build a new home that meets current energy standards.
Strict Conditions but Advantageous Combination
The new scheme is based on several criteria:
- The beneficiary must be of legal age and use the funds for a new home intended as their primary residence.
- The exceptional allowance, with a maximum amount of approximately €100,000, is temporary.
- It can be combined with existing allowances (€100,000 per parent, €31,865 per grandparent, etc.), subject to compliance with legal ceilings and deadlines.
- The funds must actually be disbursed and the transaction justified by a notarial deed or a statement of use.
This combination opens the door to a highly effective wealth strategy: donors can transfer up to several hundred thousand euros exempt from taxes, while helping their children or grandchildren overcome the hurdle of homeownership.
For beneficiaries, it offers a dual advantage: enhanced funds to borrow under better conditions and easier acquisition in a context where credit is constrained.
A Temporary Yet Structuring Measure
Behind this mechanism lies a clear philosophy: repositioning taxation to serve the collective good. By directing family donations towards new construction, the State aims to revitalize an essential sector for growth and employment while supporting solvent demand.
From an asset management perspective, this mechanism offers a flexible tool for planning succession, reducing the taxable base, and balancing transfers between generations. Donors can thus use their liquid assets more effectively, instead of letting them languish in low-interest accounts.
For Lazard Frères Gestion, this measure « illustrates the reconciliation between taxation and economic efficiency. » It gives new meaning to the concept of inheritance by linking it to a tangible project: housing one's children, supporting real estate, and stimulating growth.
Even though its application is time-limited, this tax exemption indicates a lasting trend: the government's desire to involve savers in housing finance. In the medium term, it could inspire other incentive mechanisms combining taxation, savings, and housing policy.
By facilitating useful donations, the State encourages a form of virtuous asset solidarity: giving today to build tomorrow. It is a measure to seize quickly before it vanishes like so many other exceptional exemptions.
This content has been automatically translated using artificial intelligence. While we strive for accuracy, some nuances may differ from the original French version.
