2027 Budget: a zero-rate loan for parents, family gifts… what the announcements could change for your project

A budget presented in a constrained context

The draft Finance Bill (PLF) for 2027 is due to be presented to the Council of Ministers at the end of September, then tabled in Parliament in early October. It comes against a tight budget backdrop, with public debt above 117% of GDP and French government borrowing costs at their highest since 2008. The government has nevertheless announced several measures supporting housing and wealth transfer.

Important: at this stage, these are announcements. They must be debated and voted on by year-end and may still change. Source: Kohen Avocats.

The "parenthood PTZ": up to €180,000 to move somewhere bigger

This is the flagship measure for buyers: a new zero-interest loan for families who need a larger home when a child arrives. According to the details presented:

• it would be available from pregnancy until the child turns 3;

• it would not be limited to first-time buyers: households who already own could use it to move up;

• it would cover both new and existing homes;

• it could reach €180,000 depending on income, household size and location, and finance up to 50% of the purchase for lower-income households;

• it would be combinable with the standard PTZ, subject to income ceilings (for example €88,200 for a couple with one child in Paris);

• it would be repayable over 15 to 25 years, with possible deferral, and available until 31 December 2027.

Its cost is estimated at around €100 million a year. Sources: MoneyVox, Médicis Immobilier Neuf.

The standard PTZ extended and broadened

As a reminder, since 1 April 2025 the current PTZ has been available for new homes in all zones, and for existing homes with renovation works in certain zones, for first-time buyers subject to income ceilings. The Prime Minister has confirmed that the scheme will be extended beyond 2027 and broadened, although details are not yet known (Batiactu). Other schemes are covered in our first-time buyer guide.

"Transmissions 2027": giving earlier, and at a lower cost

Announced by the Prime Minister on 12 September, this plan aims to speed up the transfer of wealth to younger generations, in particular to help them buy a home. On a temporary basis, it would:

• raise the tax-free family cash gift allowance from €31,865 to €50,000;

• apply a flat 6% rate to taxable gifts above the allowances, up to €100,000 per donor and per beneficiary. For €100,000 taxable between parent and child, gift tax would fall from about €18,200 to €6,000;

• offer a reduced 5% rate if part of the tax saved is donated to anti-poverty charities.

These measures would come on top of the €100,000 allowance per parent and per child, renewable every 15 years. Source: Médicis Immobilier Neuf.

Don't forget: the temporary €100,000 exemption (up to €300,000 per beneficiary) for gifts used to buy a new home or fund energy renovation works on a main residence ends on 31 December 2026. Families considering this kind of gift should act in the coming weeks.

Housing benefits frozen in 2027

The government has indicated that personal housing benefits (APL) will not be increased in 2027 and will stay at their 2026 level. This cost-saving measure will weigh on the purchasing power of low-income tenants at a time of rising rents.

Our advice

1. Don't sign on the strength of an announcement. Until the bill is passed, the terms can change. Treat any future aid as a bonus, not a condition of your financing.

2. Plan for known deadlines. The gift exemption for new-builds and renovation ends on 31 December 2026.

3. Prepare your family project. If you are expecting a child and thinking of moving somewhere bigger, review your borrowing capacity and the value of your current home now.

4. Get advice. For any gift, a notary's advice remains essential.

We will follow the bill's progress through Parliament in our upcoming newsletters. In the meantime, the LGH Patrimoine team is available to review your plans to buy, sell or move up.