Schemes to help children and grandchildren buy a home

There is a new tax exemption for donations of up to €100,000 from parents or grandparents to their descendants for the purchase of a new home. This is in addition to other measures.

Do you want to help your children or grandchildren buy their own home? There are some attractive schemes available to help them access property ownership. To encourage and support the construction of new housing, which is struggling, the latest Finance Act introduced new tax exemptions to encourage donations and help people access property.

For two years, you can transfer €100,000 – from each parent and grandparent – to your descendants, whether children or grandchildren. The condition is that the donee, the recipient, uses this money to purchase a new home, whether as a primary residence or even for rental purposes.

The donee can also use this money to carry out energy renovations in their existing home. This is a great opportunity, and don't miss out on this tax exemption; it applies from 2025 until the end of 2026. The limit is therefore €100,000 per donor and €300,000 per donee. This means that a donee — a child or grandchild—can receive up to €300,000 in total for their home.

This scheme is in addition to other possible donations. Each child can, for example, receive up to €131,865 from their parents, tax-free, every fifteen years, but they are not required to use it for housing. They can do what they want with it.

If we stick to new housing, it is also possible to benefit from a zero-interest loan (PTZ). From April 2025 until December 31, 2027, the zero-interest loan has been extended to purchase new housing. Previously, it was limited to so-called high-demand areas, but again, to encourage construction, the scheme has been extended to the entire territory. Whether for new collective or individual houses, or apartments.

Obtaining a PTZ, however, depends on the buyer's income. This PTZ also works in some cases for older homes, but only if you commit to carrying out major renovation work.