Taxation Donation
Taxation Donation
In France, the taxation of gifts is subject to a particularly complex tax regime with high, even confiscatory, tax rates that can reach up to 60% of the value of the transferred assets.
The tax regime applicable to a gift operation may vary depending on several factors: the family relationship between the donor and the recipient, their ages, the amount or value of the transferred assets, tax residence, etc.
Donation and tax optimization
The taxation applicable to a gift operation is not inevitable, and there are solutions and tax schemes aimed at optimizing and reducing gift taxes.
Can we reduce gift taxes?
Yes, it is possible to significantly reduce the gift taxes applicable to certain gift transactions, whether it is a donation of a sum of money, shares in a family-owned company, real estate, or a business.
How to reduce gift tax?
There are numerous tax strategies aimed at reducing gift taxes: exemptions, usufruct, implementation of complex transmission structures, and donation tax strategies… The tax strategy to adopt will depend on the tax situation of the donor as well as the recipient. Our tax lawyers offer tailor-made tax optimization schemes based on the taxpayers’ situations.
Tax lawyer and tax optimization of donations
Our tax lawyers are experts in gift tax and can advise you on the best tax choices for gifts (cash gifts, real estate gifts, business gifts, gifts of company shares…).
Our tax lawyers also provide guidance and support in all declarative aspects of your gift transactions.
Taxation Donation of money
Reduce the tax applicable to donating money with the advice of your tax lawyer
What is the tax treatment for cash gifts?
The taxation of cash gifts is relatively complex as there are various scenarios in which a taxpayer may find themselves, directly impacting the applicable tax regime for cash gifts.
Indeed, as in all gifts, the tax allowances and benefits may vary depending on the family relationship between the donor (the giver) and the donee (the receiver). This also depends on their ages, the existence of a direct line of succession, and more.
Are there declarative formalities to be completed for cash gifts?
The formalities to be completed following a cash gift may vary depending on the amount of the gift and the objective pursued by the parties involved. In some cases, a simple declaration may be made to the tax authorities, while in other cases, it may be recommended to formalize the gift transaction with a written agreement.
Is it possible to reduce the tax on cash gifts?
There are tax strategies to reduce the tax on a cash gift (allowances, exemptions, or the implementation of a wealth strategy, etc.). The tax strategy to be implemented will depend on the amount of the gift and the personal situation of both the donor and the donee.
What is the role of a tax lawyer in cash gift matters?
The role of a tax lawyer in cash gift matters is to determine the best tax strategy for the gift transaction while securing the tax aspects to avoid a tax audit for the taxpayer. In this regard, the role of the tax lawyer is also to assist the taxpayer in all declarative aspects of the cash gift transaction to ensure that all declarative obligations are correctly fulfilled.
The tax lawyers at LEXPERTAX are experts in cash gift taxation. We advise you on the best tax strategies to optimize your transactions. Our tax lawyers also assist you in all declarative aspects related to cash gifts.
