We regularly receive the same question when preparing a donation to a child or grandchild: can we give a sum of money without paying taxes, and if so, how much? The answer largely lies in Article 790 G of the General Tax Code, which regulates family gifts of money.
This provision, often referred to as the “Sarkozy gift,” allows for an exemption from transfer taxes up to 31,865 euros, subject to the age conditions of the donor and the recipient.
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The Calendar Trap: Why the Date of the Gift Changes Everything
Most guides focus on the ceiling of 31,865 euros and the age conditions. It is often forgotten that the real lever is the calendar. The exemption provided by Article 790 G renews every fifteen years. In practical terms, a parent who gives 31,865 euros to their child in 2026 will be able to do the same again, tax-free, in 2041.
This fifteen-year period starts from the date of the previous gift, not from a birthday or a calendar year. If a gift is made on March 15, 2026, the countdown restarts on March 15, 2041. A delay of a few months can cost several thousand euros in taxes.
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A common mistake on the ground is to confuse this period with the standard exemption provided by Article 779 of the CGI (exemption of 100,000 euros between parent and child). The two provisions operate in parallel, each with its own fifteen-year countdown. Therefore, it is possible to combine both, but one must track the dates of each donation separately.
To fully understand how Article 790 G of the General Tax Code works, it is essential to remember that this ceiling of 31,865 euros applies per donor and per recipient. A couple with two children can therefore transfer up to 127,460 euros (4 times 31,865 euros) completely exempt from transfer taxes in a single fifteen-year cycle.
Combining with the 790 A bis Provision: The Situation for 2025-2026
Since the finance law for 2025, a new temporary provision has modified the transmission strategy. Article 790 A bis of the CGI allows for much higher exempt donations, up to 100,000 euros per donor and 300,000 euros per beneficiary (across all donors), provided that the funds are used for the purchase of a new home or for energy renovation work.
This provision applies between February 15, 2025, and December 31, 2026. It does not replace 790 G; it adds to it. For a family with a concrete real estate project, the hierarchy of tools changes: 790 A bis becomes the primary lever, and 790 G an additional layer.
Let’s take a concrete example. A 72-year-old parent wants to help their adult son buy a new apartment. They can mobilize:
- 100,000 euros via the standard exemption (Article 779 of the CGI), if the previous gift was made more than fifteen years ago
- 100,000 euros via the temporary provision 790 A bis, earmarked for the purchase of the new home
- 31,865 euros via Article 790 G, as a gift of money without mandatory allocation
The total exempt amount can reach 231,865 euros for a single parent towards a single child, provided that each condition specific to each provision is met. This window will close at the end of 2026 for the 790 A bis aspect.
Reporting Obligations: What Has Changed Since 2025
The administrative part is often overlooked, and this is where errors multiply. Historically, a manual gift of money was declared using the Cerfa form 2735, submitted in paper form to the recipient’s tax office within a month following the donation.
Since January 1, 2026, online reporting is mandatory. The 2735 form is now filled out online at the impots.gouv.fr website. The deadline remains one month after the date of the gift. A delay exposes one to late penalties, even if the gift itself is exempt.
Here are some practical points confirmed by field feedback:
- The declaration is the responsibility of the recipient (the one receiving), not the donor
- A gift in cash, by transfer, or by check falls under the scope of 790 G, provided that it is indeed money (no securities, no movable property)
- Involvement of a notary is not mandatory for a simple manual gift, but it becomes necessary if one wishes to make a donation-sharing or if the amount exceeds the available exemptions
The Tax Implications at Death
A gift declared under the 790 G regime, within the limit of 31,865 euros, is not reportable to the donor’s estate for the calculation of transfer taxes. This is a net advantage compared to a classic donation, which is reportable for tax purposes at death if it dates back less than fifteen years.
However, if the amount given exceeds the ceiling of 31,865 euros, the excess follows the common tax regime and consumes the exemption of Article 779. Exceeding the ceiling, even by a few euros, changes the tax treatment of the entire excess portion.
Age Conditions and Eligible Beneficiaries for the 790 G Gift
The donor must be under 80 years old on the day of the transfer. The recipient must be an adult or emancipated. This provision cannot be used to give to a minor child, even through a legal representative.
Eligible beneficiaries are children, grandchildren, and great-grandchildren. In the absence of descendants, the gift can be made in favor of a nephew or niece, or by representation of a great-nephew or great-niece. The ceiling of 31,865 euros remains the same regardless of the relationship among these categories.
The age condition for the donor is strict: it is assessed on the day of the gift, not on the day of the declaration. A transfer made the day before the 80th birthday is valid. A transfer made on the same day is no longer valid. On this specific point, feedback varies among tax offices regarding the proof of the actual date of the gift, hence the usefulness of a timestamped bank transfer rather than a check or cash.
The 790 G provision remains a simple and accessible tool for organizing the transmission of family wealth, especially when combined with other available exemptions. The window opened by 790 A bis until the end of 2026 makes the current period particularly favorable for structuring family donations, provided that the reporting deadlines are not missed.