Gifting a property transfers it during your lifetime, with duty calculated at the time of the gift rather than at death. The mechanism is regional: the competent Region is that of the donor's tax residence, not where the property stands.
A notarial deed, without exception
That is the first difference from a gift of money. A sum can be given hand to hand or by transfer, with no formality. Real estate can only be gifted by notarial deed, subsequently registered. There is no simplified version, and a non-notarial property gift is void.
The notary's fees and deed costs therefore come on top of the gift duty.
Progressive scales, by band
The three Regions use the same scheme: a progressive scale by value band, with two distinct grids depending on the relationship.
- In the direct line — children, grandchildren, parents — as well as between spouses and cohabitants: the lowest rates.
- Between all other persons: markedly higher rates, which rise quickly.
The exact rates, band thresholds and applicable reductions — notably for properties undergoing energy renovation or being let — differ from Region to Region and change over time. Always check the scale in force with the tax administration of the donor's Region, listed at the end of this article.
Aggregating successive gifts
This is the mechanism most often forgotten. Property gifts made by the same donor to the same beneficiary are aggregated over a three-year reference period: the new gift is taxed starting from the band the previous one reached.
Practical consequence: gifting a property in several instalments only has a tax benefit if the gifts are more than three years apart. Two gifts eighteen months apart are taxed as one.
The gift with reserved usufruct
It allows the bare ownership to be gifted while keeping the usufruct: the donor continues to live in the property or collect the rent until their death, at which point the beneficiary becomes full owner with no further inheritance tax on that extinction.
Gift duty is then calculated on the full ownership value, but the operation locks in the transfer at the rate and value of the day. It is the most common arrangement, and it assumes the donor accepts no longer being able to sell alone.
Gift or inheritance: the calculation to make
Gift duty is generally more favourable than inheritance tax on the same value, particularly outside the direct line. But a gift is immediate and irrevocable: it takes the property out of the estate, with everything that implies should the donor later need to sell it.
The calculation needs a solid base: the value the administration retains is the market value on the day of the gift. Declaring too low exposes you to reassessment and a penalty; declaring too high means paying duty for nothing. Situating the property in the real market of its municipality before going to the notary is therefore no minor precaution.