Article 790 G of the General Tax Code outlines a specific mechanism: the exemption from gift tax on monetary gifts made within a family context, up to a limit of 31,865 euros per beneficiary. This provision, often referred to as the “Sarkozy gift,” differs from the standard allowances provided by other articles of the CGI and can be combined with them, making it a significant tool for wealth transmission.
Relationship between the Sarkozy gift and the standard allowances of the CGI
The most common confusion concerns the difference between article 790 G and article 757 of the CGI. The former creates a specific exemption for monetary gifts between family members, subject to age conditions. The latter governs the general regime of manual gifts, with no restrictions on form or age, but subject to gift tax after applying the standard allowance.
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In practical terms, a parent can transfer to each child 31,865 euros exempt under article 790 G, in addition to the 100,000 euro allowance provided by article 779 of the CGI. These two provisions operate in parallel and renew every fifteen years. An article that presents the details on article 790 G of the CGI helps to better understand this often-misunderstood cumulative mechanism.
Since the finance law for 2025, a third layer has been added with article 790 A bis of the CGI: a temporary exemption of 100,000 euros per donor and per beneficiary, reserved for gifts allocated to a new real estate project or energy renovation works. This provision, active during the 2025-2026 window, raises the theoretical total exemption ceiling to 231,865 euros per parent and per child when the three mechanisms are combined.
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Age conditions and beneficiaries of the 790 G exemption
Two age conditions strictly govern the application of article 790 G. The donor must be under 80 years old on the day of the gift. The donee must be of legal age or emancipated at the time they receive the sum.
The circle of beneficiaries is broader than often thought. Three categories of family ties qualify for the exemption:
- The donor’s children, which is the most common and tax-advantageous case
- Grandchildren and great-grandchildren, with the same ceiling of 31,865 euros per beneficiary
- Nephews and nieces, but only in the absence of direct descendants of the donor
This last point is crucial. A donor with children cannot use article 790 G for the benefit of their nephews. The condition of absence of descendants is assessed on the day of the gift, not at the time of declaration.
Forms of the gift and declaration obligation to the tax administration
Article 790 G only covers monetary gifts made in full ownership. The term “monetary gifts” includes bank transfers, checks, and cash gifts. Movable property, company shares, or real estate do not fall under this provision.
Declaring the gift to the tax office is a step not to be overlooked. The donee must declare the gift received, even when it is fully exempt. This declaration is now done online on the impots.gouv.fr website, via the beneficiary’s personal space. The paper form remains usable in certain limited cases.
A common mistake is to check the wrong box on the declaration form: the regime for manual gifts (article 757) and that for exempt family gifts (article 790 G) correspond to two distinct boxes. Confusing the two can lead to an erroneous calculation of taxes or the loss of the exemption.
Renewal of the ceiling and long-term transmission strategy
The exemption of 31,865 euros provided by article 790 G fully renews after fifteen years. This period starts from the date of the previous gift declared under this regime, not from an external tax event.
For a family with two parents and two adult children, the mechanism allows for significant amounts to be transmitted across two generations without gift tax:
- Each parent can give 31,865 euros to each child under article 790 G, totaling 127,460 euros for the couple over two children
- This amount is in addition to the 100,000 euro allowances per parent and per child under article 779
- If the grandparents are still within the age conditions, they can also use the same mechanism for their grandchildren
However, the age condition for the donor (under 80 years) requires planning ahead. Waiting too long to make a first 790 G gift may reduce the possibility of utilizing a second fifteen-year cycle.
Article 790 G remains a distinct tax tool from the standard allowances, with its own age conditions, its own ceiling, and its own renewal cycle. Since 2025, its relationship with the temporary exemption of article 790 A bis of the CGI opens a particularly favorable transmission window, provided that the declaration formalities are respected and that the applicable regimes are not confused on the administration’s form.