Whether it is for receiving a transfer from a relative or the receipt of an amount from a money pot, the funds received may be classified as a "manual donation" and may be subject to a declaration obligation with the French tax authorities.

Following the latest clarifications from the Ministry of Economics, it is essential to review your declaration obligations regarding manual donation.

Why is it called a "manual donation"? A manual donation is the hand-to-hand transfer (or by bank transfer) of a movable asset (e.g., a sum of money).

Unlike a donation before a notary, a manual donation does not require an authentic deed and may be subject to declaration to tax authorities.

Do I have to declare every amount received by transfer or from a money pot? It is necessary to distinguish whether you are dealing with a "donation of customary nature" (non-taxable and non-declarable) or a true "manual donation" (subject to declaration). In the case of money pots, a money pot with multiple donors may, depending on the circumstances, constitute several distinct manual donations.

Although there is no legal or quantified threshold defined by law to differentiate these two categories, the Ministry of Economics website notably clarified that: only donation of an "unusual" amount (generally, exceeding 2% of the donor's assets or 2.5% of the donor's net annual income) or valuable goods must be declared.

In summary:

• A simple administrative tolerance: The above thresholds are indicators provided by tax authorities intended to assist self-assessment.
• On the "unusual" nature: If the amount received is considered modest relative to the wealth of the person sending it, it is a donation of a customary nature. Conversely, if it is deemed "unusual" for their lifestyle, the declaration becomes mandatory for you.
• The risk of interpretation: Tax authorities retains its discretionary power. Therefore, as soon as the amounts become significant, prudence recommends consulting a specialist.

Who must make the declaration? Only the person receiving the donation (the beneficiary) is obliged to declare it.

When must the declaration be made? The declaration must be made within one month following the revelation of the donation to tax authorities. In practice, it is advised to do so as soon as the funds are received if they exceed the tolerance thresholds mentioned above.

Otherwise, you risk late payment interest and/or penalties.

How and to whom should the declaration be sent? This is one of the major new points: the declaration must now be made online.

1. Log in to your personal space on the website impots.gouv.fr.
2. Go to the section "Declare" then "Declare a donation or transfer of social rights."
3. The service automatically calculates any duties to be paid and allows you to pay directly by credit card or direct debit.

Note: Some exceptions remain for paper forms, but they are very limited (e.g., lack of internet access).

What exactly must be declared? The beneficiary must declare:

• The identity of the donor and the beneficiary;
• The date the funds were received;
• The amount of funds received (or the estimated value if it is a valuable asset).

Summary of key points

Indicative declaration threshold	Approximately > 2% of the donor's assets or > 2.5% of the donor's annual income
Declaration method	Mandatory online at impots.gouv.fr.
Responsible for the declaration	The beneficiary (the person receiving the money)
Deadline for declaration	1 month after receipt of funds

Sources:

• https://www.economie.gouv.fr/particuliers/preparer-ma-retraite-et-ma-succession/comment-faire-une-donation​
• https://www.service-public.gouv.fr/particuliers/actualites/A18707#:~:text=Seuls les dons d'un,de consulter un juriste fiscal

This article is provided for informational and educational purposes. It does not replace personalized consultation. In case of doubt about the usual or unusual nature of the funds received, it is recommended to consult a tax advisor of your choice who will study your situation."

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