Certain rules must be respected if you wish to place an envelope at the foot of the tree.
For a third of French people, it is the gift they like the most at Christmas. It’s not always easy to admit it or put it on your list, but receiving money at this time is highly anticipated. For the donor, it is the assurance of hitting the mark. An envelope with cash, a check, a transfer… Whatever. This ensures that you don’t make the wrong size, model or color.
If financial gifts at Christmas are commonplace, it is also to be able to pass on, over the years, part of one’s assets while avoiding tax. Legally, any parent can give €100,000 free to each of their children every 15 years. But for some, once this ceiling is reached, it is a matter of trickery to give without paying tax.
All French people are free to pay money to their loved ones without declaring it for taxes. But it is better to always be able to justify the gesture: end of year celebrations, birthday, participation in a trip… The reasons are legion. Saying that we are giving money as a Christmas present is completely acceptable. And above all a very good opportunity.
However, one should not do anything with the sums donated, even if very large amounts of generosity exist. There is no maximum amount that cannot be exceeded to avoid taxes, but your generosity should not be too excessive. Payments must be adapted to your resources and assets.
According to notaries and tax lawyers, it is better not to exceed certain ceilings: either 2.5% of your annual income or 1.5% of your assets. Thus, it is tolerated to pay (according to income)…
- 405€ per person on minimum wage
- 630€ per person at the median salary (2091€ net per month)
- 1200€ for a person earning 4000€ net per month
Note that there is significant uncertainty regarding these amounts: are they only valid for one payment or for all payments made over a period? Nothing clarifies this. The tax authorities are therefore free to judge the situation, file by file.
Be careful, however, that this gift does not turn against you. If you have exceeded these proportions and the tax authorities dig in, they could reclassify this as a donation. This would have no impact if the base of €100,000 in free donations has not been entirely used. Otherwise, this will result in additional donation costs. Unless you opt for cash payment, which is more difficult to trace.