Donations: notaries propose halving the taxes up to 552.324 euros

Faced with inheritances being passed on later and later in life, notaries want to encourage gifts made during the donor's lifetime. Their key proposal is to halve the tax rates applicable to gifts of full ownership or usufruct , up to a limit of €552.324 in net taxable value.

This measure is one of 21 proposals developed after two years of work on tax law. They still need to be put to a vote at the 122nd ^Congress of French Notaries in October 2026. However, their adoption by the Congress would not be enough to make them applicable: a change in tax legislation would then be necessary.

Reduced rates regardless of the relationship

The system devised by the notaries would benefit all beneficiaries, whether they are children, spouses, civil partners, brothers and sisters, nephews and nieces or people with no family ties to the donor.

For the taxable portion below the proposed ceiling, the rates applicable to direct descendants would thus decrease from the current 5% to 20% to a range between 2,5% and 10%. Between siblings, the rates of 35% and 45% would be reduced to 17,5% and 22,5%, respectively. The rate applicable to nephews and nieces would decrease from 55% to 27,5%, while the rate for unrelated individuals would be reduced from 60% to 30%.

According to simulations presented by Congress, the taxes due on a taxable share of €230.000 would decrease, for example, from €44.194 to €22.097 for a gift in the direct line. They would be reduced from €138.000 to €69.000 between unrelated individuals.

Mobilize heritage earlier for housing and works

Notaries observe that the average age of heirs is now over 50. At this stage of life, many have already acquired their primary residence, started their own business, or established their family. The assets passed on upon death therefore often arrive after the period during which they would have been most useful.

By encouraging advance donations, the profession aims to make it easier for beneficiaries to finance home purchases, renovations, business projects, or investments. Notaries also believe that this faster circulation of capital could support economic activity, while allowing the government to collect certain tax revenues earlier.

Beyond the threshold of €552.324, the currently applicable rates would continue to apply. Furthermore, the proposal does not include any changes to existing allowances or the elimination of the standard tax clawback.

Tax breaks extended to multigenerational inheritances

Another proposal aims to extend to inheritances the allowances currently reserved for gifts made to grandchildren and great-grandchildren. These amount to 31.865 euros and 5.310 euros respectively.

Apart from situations involving inheritance by representation, these descendants currently only benefit from a tax allowance of €1.594 upon the death of their grandparent. The Congress therefore proposes amending the General Tax Code to better reflect intergenerational transfers and the needs of young people in terms of housing, training, and education.

A proposed reform to streamline real estate sales

Notaries also want to review the taxation of capital gains on real estate for individuals. They note that some owners are postponing the sale of a property in order to wait for a more favorable exemption linked to the length of ownership, which would contribute to reducing the number of properties put back on the market.

Congress is proposing, among other things, to align the holding period for full exemption from social security contributions at 22 years with the period already applicable to income tax. Currently, full exemption from social security contributions is only granted after 30 years of ownership.

A tax exemption proportional to the sale price reinvested in certain investments or projects specifically defined by law is also being considered. The reinvestment must take place within two years of the sale and concern a property held for more than five years. Among the uses mentioned are certain rental investments, particularly those meeting the criteria of the Jeanbrun or Denormandie schemes.

A "major transfer" at the heart of the tax debate

Over the next fifteen years, the aging of the baby boom generation could lead to the transfer of several trillion euros in wealth. This prospect puts the taxation of gifts and inheritances back at the heart of the political debate, between the desire to support younger generations and calls to increase taxes on the wealthiest individuals.

For Gilles Bonnet, president of the 122nd ^Congress of French notaries, the proposals developed should help to stabilize the rules, secure the practice of professionals and "encourage economic agents" rather than "restrict" them.

The vote scheduled for October will allow the profession to finalize its position. The proposals adopted will then have to be taken up by the government and incorporated into legislation before they can have any effect on personal taxation.