A donation is the irrevocable transfer by one person of the rights or ownership of movable or immovable assets to another person during their lifetime.

Donations made to ELA, which has been recognised as a public utility since 1996, are fully exempt from property transfer tax.

Types of donations

Freehold

The asset is transferred in its entirety to the association, which becomes the final owner.

Bare ownership with a usufruct

ELA becomes the permanent owner of the asset but you (or someone you designate) use it or receive the benefits of it, for a specified period of time.

Please note that it is the usufructuary who is liable for the solidarity tax on wealth (ISF) if applicable.

Usufruct

You remain the owner, but ELA can use the asset (e.g. to receive rental profits from a flat or dividends from a share).

In this case, the asset is not included in the ISF tax basis if you are liable for it.

The form of the act

A donation, to be valid, must be made before a notary and take into account the inheritance reserve.

A deed of gift written on plain paper is of no value.