Will my children’s university expenses be liable to French gift tax?

Reader Question: I live in France and my children will attend university abroad next year. They will be over 18. If I pay their tuition and housing expenses am I liable for gift tax in France?

If the money is paying for tuition and towards daily essentials (rent, food…) for a child who otherwise would not have the means to support themselves because they are studying, no, this should not be seen as a taxable gift by the French tax system.

The question also arises as to whether or not your child will remain ‘attached’ to your own tax household. Where they are not self-supporting and are in full-time study, this is possible up to the year in which they are aged 25 at the start of the calendar year.

If they are ‘attached’ to your household you obtain the usual income tax lowering from the fact of having their extra family quotient part, plus you can claim a tax reduction for higher education costs (for 2023 income this was €183 per child).

Read more: Inscription, fees, rent: the average cost of university in France

If your children are not ‘attached’ you can claim a deduction from taxable income under the obligation alimentaire rules – a legal responsibility that children and parents have towards each other, if either is in need for daily requirements. In this year’s declarations it was possible to claim expenses up to €6,674.

Money paid under obligation alimentaire should be proportional to your own means and your child’s needs.

Recipients who remain French fiscal residents should also declare the help in their own tax declaration.

Read more: French towns experiment minimum income for students