Here is the maximum amount to give your children to help them buy a property without paying taxes

Considering helping your children acquire their first residence can seem complex given tax constraints. However, there are legal solutions to support them financially without being imposed by the tax administration.

Acquiring real estate is a major life project, especially when it involves the purchase of a first main residence. However, in the current economic context, marked by inflation and rising credit rates, this approach is becoming increasingly difficult for young first-time buyers. The need to have a personal contribution, generally required by banks, often constitutes a major obstacle for them. Indeed, banking establishments generally impose a minimum contribution of 10 to 30% of the amount of the property envisaged, an amount which can quickly increase, particularly in areas where property prices are high.

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Faced with this situation, many parents wish to financially support their children to help them realize their real estate project. In addition to intra-family loans or acquisition in joint ownership, the simplest and most common solution remains donation. But how much money can you legally pass on to your children without paying taxes? French law allows you to donate up to a certain amount, without this amount being taxed.

Support your children with a tax-exempt donation

The French tax system offers specific mechanisms to encourage donations between parents and children, particularly for projects such as the purchase of real estate. The first lever available is the classic donation. Every 15 years, each parent can transmit up to 100,000 euros to each childwithout this sum being subject to tax. This reduction applies to different types of propertywhether it is a sum of money, company shares or even real estate.

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This donation is exempt from taxes under certain conditions and allows young people to more easily access property without having to save years to build up their personal contribution. In the majority of cases, parents opt for this form of support in order to facilitate their children’s entry into the real estate market.

The exceptional donation of a sum of money

Furthermore, there is a second form of donation, less known, but just as interesting, the exceptional gift amount of money. This system makes it possible to supplement the classic reduction of 100,000 euros by adding an additional donation. Therefore, it authorizes parents to give up to 31,865 euros additional every 15 years, always without being subject to taxt, provided that the latter are under the age of 80 and that the child is an adult.

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It is also important to note that this amount only concerns monetary donations and not material goods. This type of donation can be made simply with the help of a Cerfa form without the need to go before a notary. By combining these two measures, a single parent can give up to 131,865 euros to his childand it can climb up to 263,730 euros for a couplewhich can constitute a significant contribution for many young first-time buyers when making their purchase.

Joanna Magot

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