With the enactment of the 2025 Finance Act on 15th February, the French government has implemented a series of robust measures aimed at revitalising the housing and construction sector. The initiatives are designed to encourage home ownership, enable the transfer of wealth and safeguard first-time buyers.
France’s 2025 Finance Act seeks to correct public finances by €50 billion and reduce the public deficit to 5.4% of GDP within the year. To achieve this, the government is introducing spending cuts and imposing exceptional taxes on the wealthiest individuals and largest corporations.
Among the most significant reforms are those pertaining to property and construction, including the expansion of the Zero Rate Loan (PTZ). From 1st April, banks will be able to offer PTZ loans to first-time buyers across the country, irrespective of location, for the purchase of new properties, whether individual or collective. For existing properties, the PTZ scheme remains unchanged, allowing eligible households in designated areas to benefit from financial assistance on the condition that they undertake energy renovation work.
Another key point is the exemption on financial gifts of up to €300,000. Parents and grandparents will be permitted to transfer up to €100,000 each to a child or grandchild, up to a maximum of €300,000 per beneficiary toward buying a home. This initiative can be used for both primary residences and long-term rental purposes.
Additionally, the government is acting to shield first-time buyers from rising notary fees. While departmental councils will have the authority to raise transfer taxes (DMTO) to fund social policies, first-time buyers will be exempt from these potential increases. This move is aimed at easing the path to home ownership for new purchasers.
Beyond the housing sector, the 2025 Finance Act introduces several fiscal and environmental policies impacting individuals. These include a differential contribution on the highest incomes (CDHR) and an increase in the ecotax, which strengthens CO2 and weight penalties on polluting vehicles. Furthermore, the reduced VAT rate on the purchase and installation of gas boilers is being abolished, while the solidarity tax on airline tickets (TSBA), commonly referred to as the ‘Chirac tax’, is set to rise, albeit to a lesser extent than initially planned.
In an effort to offset the impact of inflation, the Finance Act also indexes the income tax scale to inflation at a rate of 1.8%, thereby ensuring that household taxation levels remain stable despite economic fluctuations.
The Musée de l’Annonciade in Saint-Tropez is poised for a major €9 million transformation, with an ambitious expansion and modernisation project designed to enhance its collections and cultural appeal.
Founded in 1922, the museum is housed in a 16th-century chapel on the water’s edge of Saint-Tropez and showcases an impressive collection of modern art from 1890 to 1950, featuring works by renowned artists such as Matisse, Derain and Marquet.
The planned expansion will add approximately 1,000 square metres to the historic site, providing the museum with the space to host high-quality temporary exhibitions while enhancing the display of its permanent collection. A beautifully designed garden will complement the new-look venue, providing an additional area for cultural events linked to Saint-Tropez’s rich maritime heritage.
An initial design plan of the new Musée de l’Annonciade. Photo source: Ville de Saint-Tropez
The renovation aims to double the museum’s annual visitors to 80,000 by offering an immersive experience and ensuring accessibility for all. The total cost of the project is estimated at €9.27 million, with funding sourced partly from the State, the Région Sud and the Département du Var.
Construction is scheduled to begin in 2026, with the grand reopening expected in 2028. While initial design sketches have been selected, they are not yet final and will be refined in collaboration with architectural heritage services. The project also includes creating new openings in the historic “torpilleurs” building overlooking the port’s quays.
This year marks three decades of diplomatic relations between Monaco and China, a milestone that reflects an evolving partnership between two vastly different nations. Despite contrasts in size, history and political systems, Monaco and China have developed strong ties in environmental collaboration, cultural exchanges, tourism and economic cooperation.
In an interview with Monaco Life’s Cassandra Tanti, Monaco’s Ambassador to China Marie-Pascale Boisson highlights the significance of this anniversary and the continued efforts to deepen ties between the two countries. From diplomatic visits to business opportunities, the relationship has strengthened in areas where common values align, particularly in environmental protection and cultural diplomacy.
Prince Albert II and Princess Charlene welcomed President Xi Jinping and his wife Peng Liyuan in Monaco on 24th March 2019. Photo source: Palais Princier de Monaco
A diplomatic bridge: environmental collaboration and shared values
One of the most significant achievements in Monaco-China relations is environmental collaboration. Monaco, under the leadership of Prince Albert II, has positioned itself as a strong advocate for environmental preservation, a priority that China has increasingly embraced. A testament to this growing cooperation is the authorisation for the Prince Albert II of Monaco Foundation to establish a branch in Beijing—an exceptional recognition of Monaco’s environmental expertise.
“This might seem surprising given our differences, particularly in size, but Monaco has an important voice, especially because of Prince Albert II and his Foundation, which plays a key role in environmental initiatives,” says Ambassador Boisson.
The Foundation has played a pivotal role in conservation projects, including efforts to protect the Amur tiger, known in Russia as the Siberian tiger. Through this initiative, a protected area was established to ensure the species’ survival. Additionally, a joint scientific project between Monaco and China has focused on studying pollution in aquatic ecosystems, particularly in Taihu Lake and the Yangtze River. Findings from this research are shared with international organisations and Monaco’s own scientific institutions, reinforcing the Principality’s commitment to ocean conservation.
Prince Albert II’s dedication to environmental diplomacy has also been well received in China. Each year, during Monaco Ocean Week, the Chinese Minister responsible for ocean protection delivers a keynote address at the Monaco Blue Initiative forum. This ongoing dialogue highlights the shared interest in tackling environmental challenges.
Monaco’s star Formula 1 driver Charles Leclerc has a large fan base in China. As an APM Monaco brand ambassador, the driver appeared at an event during last year’s Beijing Grand Prix, pictured here with Ambassador Marie-Pascale Boisson
Charles Leclerc, Monaco’s star Formula 1 driver, has become an unexpected yet powerful ambassador for the Principality in China. His popularity soared following his performances in Shanghai and Beijing, where Chinese motorsport fans enthusiastically embraced the Ferrari driver. Ambassador Boisson witnessed this firsthand during the 2024 Beijing Grand Prix, noting the immense admiration he commands.
“When I was in Beijing for the Grand Prix, I saw just how much the Chinese love Charles Leclerc,” she recalls. “They cheer for him not only because he drives for Ferrari, a brand with a strong following in China, but also because of his personality and talent.”
His presence on the F1 grid reinforces Monaco’s image as a hub of prestige and sporting excellence, strengthening the connection between Chinese fans and the Principality.
Cultural exchanges: strengthening people-to-people connections
Cultural diplomacy has been another key pillar of Monaco-China relations, says Boisson. Over the years, Monaco has hosted and participated in numerous high-profile exhibitions and performances that have captivated audiences in both nations. In 2017, the Grimaldi Forum held a successful exhibition called The Forbidden City, Imperial Court Life in China, while a year later, a collection showcasing Monaco’s European dynasty was displayed inside the Forbidden City itself.
“These exhibitions strengthened historical and artistic connections between the two countries,” confirms the ambassador.
Monaco’s renowned arts institutions, including the Monte-Carlo Philharmonic Orchestra and the Ballets de Monte-Carlo, have also contributed to fostering cultural ties. The ballet performed in Shanghai in 2023 to great acclaim, and in 2025, it will take part in special performances in Macau as part of the 30th-anniversary celebrations of Monaco-China relations.
Tourism, an essential aspect of cultural exchange, has also seen significant developments. In a major step forward, as of November 2024, Monegasque citizens no longer require a visa for stays under 30 days in China. This unilateral decision by Chinese authorities aligns Monaco with several European nations that enjoy similar exemptions. The ease of travel is expected to encourage more Monegasques to visit China, further deepening mutual understanding.
Monaco delegation at the CII in November 2024. Photo source: Embassy of Monaco in China
Economic ties: business opportunities and Monaco’s growing presence in China
China represents an important economic partner for Monaco, and the Principality has made concerted efforts to establish itself in the Chinese market. Since 2019, Monaco has participated in the China International Import Expo (CIIE) in Shanghai, a prestigious trade fair promoting foreign businesses.
“As an embassy, we organise a Monaco Pavilion at the CIIE, one of the most significant trade fairs in the country,” notes Boisson. “It’s not an easy market due to competition, but the opportunities for Monegasque entrepreneurs to showcase their products and services are significant.”
Despite fierce competition, Monaco-based businesses have found incredible opportunities in China. Large brands like APM Monaco and skincare company Lancaster are leveraging their ties to Monaco, resulting in considerable success in China, reveals Boisson.
The 2019 state visit of Chinese President Xi Jinping to Monaco was another pivotal moment in economic relations. The visit, widely covered by Chinese media, led to a surge in Chinese tourism to the Principality.
Although the Covid pandemic temporarily disrupted this trend, Chinese tourists are now making a strong return to Monaco. Known as some of the highest-spending visitors, they are once again filling luxury hotels, shopping in high-end boutiques and attending prestigious events such as the Bal de la Rose.
Marie-Pascale Boisson, Ambassador of Monaco to the People’s Republic of China, presented her Letters of Credence to President XI Jinpin in April 2023
The perception of Monaco in China
According to the ambassador, who travels to the country regularly, Monaco enjoys a highly favourable reputation in China. Monaco, she says, is admired for its stability, high standard of living and prestigious status as a hub for sports and luxury. Chinese tourists are particularly drawn to Monaco’s history, culture and association with global icons.
Prince Albert II himself holds a unique appeal in China. His natural demeanour and strong family values resonate with Chinese audiences, as demonstrated by a viral moment during his visit to Beijing when he requested a second Olympic mascot for his twin children. The gesture, which garnered over a million views in a single day, highlighted the cultural connection between Monaco’s princely family and Chinese traditions that emphasise family and heritage.
“Chinese people admired his thoughtfulness and family values,” Boisson notes.
Although Monaco does not have a large Chinese resident community, those who do settle in the Principality tend to be high-net-worth individuals with business interests across multiple countries, reveals the ambassador. Monaco’s image as a discreet and well-managed destination makes it an attractive location for these individuals and their families.
The 30th anniversary of Monaco China relations and Chinese New Year Celebrations on 24th January. Photo credit: Cassandra Tanti, Monaco Life
Looking ahead: the future of Monaco-China relations
As Monaco and China celebrate 30 years of diplomatic relations, both nations are focused on further strengthening their partnership.
“We will continue strengthening ties in areas where we share common values,” says Boisson.
Plans are underway for more cultural exhibitions, performances and business collaborations, with Monaco aiming to expand its presence at the next China International Import Expo. Additionally, scientific cooperation is expected to grow, particularly in oceanographic research.
Diplomatic engagements will also continue to evolve, with the arrival of a new Chinese Ambassador to France and Monaco, as well as a new Chinese Consul General in Marseille. These changes are expected to facilitate further dialogue and cooperation.
Monaco’s relationship with China is a testament to how two vastly different nations can find common ground and build meaningful partnerships. While challenges remain, particularly in navigating China’s complex business environment and long-standing cultural traditions, “the foundations of this diplomatic relationship remain strong”, confirms Monaco’s Ambassador to China.
As both nations look to the future, the ties forged over the past 30 years will serve as a platform for deeper engagement, mutual growth and shared success.
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As of 15th February, financial gifts made between certain family members for the purchase of a new home or for energy renovation work are now exempt from gift tax under specific conditions. This follows the enactment of the 2025 Finance Act, which introduced this as a temporary, time-limited exemption scheme that will remain in effect until the end of 2026. Here’s more on how it works.
Under normal circumstances, monetary gifts are subject to taxation unless they fall under certain exceptions, such as birthday or wedding gifts. However, new provisions now allow tax-free financial gifts from family members, provided the money is used for property acquisition or energy-efficient home improvements.
Eligible donors include parents, grandparents, great-grandparents, and aunts and uncles with no direct descendants. The exemption applies to donations made for the purchase of a new home, a property in the process of completion, or for energy renovation work on a primary residence. The renovations must qualify for MaPrimeRénov’, a government scheme supporting energy efficiency improvements.
HOW IT WORKS
To benefit from this exemption, the recipient must utilise the funds within six months of receipt. The tax-free amount is capped at €100,000 per donor, with an overall limit of €300,000 per beneficiary for real estate projects. For example, a person could receive €100,000 from their grandfather and €100,000 from their mother, both exempt from taxation, to finance the purchase of a home.
This exemption scheme will remain in effect until 31st December 2026. A similar initiative, which ended on 30th June 2021, allowed tax-free donations of up to €100,000 for home construction or energy renovations by direct descendants.
It is important to note that if the exempted funds are used to purchase a home, the recipient must either reside in it as their main home or rent it out as a primary residence for at least five years. Renting to a member of one’s tax household is not permitted under this scheme.
February in the Côte d’Azur brings a dazzling display of golden mimosa, but for allergy sufferers, it also signals the start of a challenging season.
Covering the hills of Tanneron, the Croix des Gardes massif and beyond, the bright yellow flowers of the mimosa tree, or the Acacia dealbata to give it its scientific name, fill the air with their distinctive fragrance at this time of the year.
The Massif de Tanneron, home to the largest mimosa forest in Europe, provides stunning views over Mandelieu-La Napoule and the Mediterranean Sea. The nearby Croix des Gardes nature reserve in Cannes offers a variety of hiking trails through its mimosa-covered hills. There’s also the Route du Mimosa, a 130-kilometre scenic drive stretching from Bormes-les-Mimosas to Grasse, which is dedicated to the region’s iconic flower and offers numerous stops for those wanting to immerse themselves in the golden bloom.
A protected resource
Mimosa farming is the primary economic activity in Tanneron, a Var commune where the flower, native to southeastern Australia, has been cultivated for over a century alongside eucalyptus.
A longstanding municipal decree prohibits the public from harvesting mimosa, whether growing wild or in cultivated fields, with a fine of €35 for those caught, yet many still choose to flout these rules. Visitors to the area can often be seen collecting branches from roadsides, the forests and even local farms, and the authorities have decided to increase surveillance on the Massif de Tanneron in 2025, with police patrols, gendarmerie reservists and cameras now monitoring the area. Farmers, too, have reportedly taken action by setting up communal WhatsApp groups to report suspicious activity.
Their message is clear: mimosa belongs to someone, whether private property or the commune, and taking even a small branch is theft.
Not a bloom for everyone
While mimosa is a highlight of the winter season in the Côte d’Azur, it is also a major trigger for seasonal allergies. This year, France is experiencing a severe pollen alert, with much of the country currently under ‘red’ risk.
The PACA region and Monaco are among the most affected areas, as pollen from mimosa, along with cypress, juniper and ash, are widespread, causing symptoms such as itchy eyes, runny noses and respiratory discomfort to those with allergies. The National Aerobiological Surveillance Network (RNSA) warns that recent mild and windy weather has intensified the spread of pollen, making conditions especially difficult for sufferers.
Experts recommend limiting time outdoors for those with allergies during peak pollen spread, as well as rinsing hair and changing clothes after exposure, and wearing sunglasses or masks to reduce irritation. For those with severe allergies, sticking to prescribed treatments is essential during this high-pollen season.
But for those unaffected by allergies, the mimosa season offers breathtaking landscapes. It is also an undeniably beautiful signal that spring is on its way at last.
Check out a Monaco Life reel of the 2024 mimosa season below:
Over the coming weeks, the Monaco Government will offer those eager to learn more about the Principality’s newest neighbourhood, the eco-district of Mareterra, four exclusive opportunities to explore its vast public spaces. From a quartz-encrusted meditation zone to the gardens—each a masterpiece of green, urban planning—those on the guided tour experience will have a chance to discover the fascinating history, visionary design and ecological innovations that shaped this extraordinary development.
Boasting more than 800 trees and an astonishing 35,000 plants across 9,400 square metres of verdant landscaping, as well as five serene pools and a gently cascading channel, the look and feel of Mareterra is closely interwoven with the ecologically conscious and sustainable principles that guided the €2 billion project.
In a bid to showcase the finer details of the neighbourhood, the Monaco Government has announced that the Department of Urban Planning will be running a series of four guided tours of Mareterra. The first will take place on 26th February, followed by excursions on 5th, 12th and 19th March.
The goal of the tours is to show participants the extent of public offerings within the new neighbourhood, including the two striking attractions of the Blue Cave, an awe-inspiring space providing an unparalleled view inside a Jarlan caisson, and the Meditation Space, a place of tranquillity adorned with quartz, glass and metal that provides visitors with an environment conducive to reflection and serenity.
Mareterra is special not only for its beauty but also for its commitment to sustainability. The pioneering infrastructure includes an innovative irrigation basin that collects rainwater to nourish the lush greenery, as well as a stormwater reservoir designed to regulate runoff into the sea, mitigating environmental impact. This is but one of the elements of the design that will be explained in greater depth to participants of the tours, alongside many of the other challenges, innovative techniques and intricate craftsmanship that brought Mareterra to life.
Simply put, these walks are a unique opportunity to step behind the scenes of one of Monaco’s most ambitious projects and appreciate the expertise that transformed this vision into reality.
The tours will all begin at 2pm in the Place Princesse Gabriella, in front of Alexandre Calder’s striking Four Lances sculpture. For more information on how to sign up for a tour, click here.
