Are gifts to children taxable?

A question I’m often asked:

“I would like to gift some money to my daughter. How can I do this and what taxes do I need to be aware of? Will I need to use a Notaire?”

First, you need to determine if this is a gift or if you are providing financial assistance to a family member. You are allowed to provide financial help (subsistence support) to family members if their income is low, and in some circumstances, you can apply for tax relief on this. They will need to declare this income on their French tax return.

If it is a gift, is it for a wedding present? Is the amount you are gifting relative to your income, and have you gifted similar amounts to other children when they got married? You are allowed to gift up to 100,000€ to each child every fifteen years tax-free, but you must declare this to the tax authorities. If you die within those fifteen years, the amount you have declared will be used towards their inheritance tax allowances.

Your daughter will need to declare this amount to the relevant tax authorities. If she lives in France, she will need to make a Déclaration de don manuel if the amount is less than €15,000, and for amounts above €15,000, a Révélation de Don Manuel. If your daughter lives outside of France, she will need to contact the tax authorities in the country she resides in to declare this gift, and any taxes due will depend on the rules of that country.

The use of a Notaire is required if the gift involves a division of family assets or the transfer of property.

If you are unsure of what needs to be declared and when, you can easily email your local centre d’impôt. Their email address is on your Avis d’impôt.