Non-residents · property in France

Non-resident owner of property in France

Rents, sale, real estate wealth tax, company shares: property located in France remains taxable in France, wherever the owner lives. The firm organises how the property is held, declared and sold, with the tax representative where the sale requires one.

Present my property The guide to non-resident taxation
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What taxes does a non-resident pay on property located in France?

Three, depending on the event. Rents are taxed in France as property income, at a minimum rate of 20% then 30% unless the average rate is more favourable (French Tax Code, art. 197 A). A sale triggers a 19% levy on the capital gain for an individual, paid when the deed is registered under the responsibility of an accredited tax representative, except for sellers established in the European Union or the European Economic Area where administrative assistance conditions are met (French Tax Code, art. 244 bis A). Holding the property is subject to the real estate wealth tax (IFI) above the statutory threshold. Social levies come on top, at a rate that depends on the owner's social security affiliation.

Tax treaties can shift the right to tax. For real estate, they generally leave taxation to the State where the property is located: France.

French Tax Code, art. 197 A and 244 bis A; French Tax Code, art. 150 U and 150 VC.

— In brief
Rents
Property income taxable in France: 20% up to the upper limit of the second bracket of the scale, 30% beyond, or the average rate if more favourable
Sale
19% levy for an individual, paid at the deed (French Tax Code, art. 244 bis A)
Representative
Accredited in France, except for a seller from the EU or the EEA covered by the assistance conventions
Residence
Possible exemption up to EUR 150,000 of gain for certain European nationals (French Tax Code, art. 150 U, II, 2°)
— Rents

Property income of a non-resident

  • A minimum tax. The tax of a non-resident who receives French-source income cannot be lower than an amount computed at 20% on the part of net taxable income up to the upper limit of the second bracket of the scale, and at 30% beyond (French Tax Code, art. 197 A). That limit is EUR 29,579 for 2025 income. The rates of 20% and 30% become 14.4% and 20% for income sourced in the overseas departments.
  • The average rate. Where the taxpayer shows that the rate of French tax on all of their income, French or foreign, would be lower than these minimums, that rate applies to their French-source income (French Tax Code, art. 197 A). The proof is the tax assessment notice or the worldwide income; residents of the European Union or of a State bound by an assistance convention may, pending the documents, attach a statement on honour.
  • Social levies. They come on top of the tax. For unfurnished lettings, the rate is 17.2%; it is 18.6% for furnished lettings that are not already subject to social contributions on activity, from income received in 2025. An owner affiliated to a compulsory health insurance scheme of another State of the European Economic Area, of Switzerland or of the United Kingdom, and not dependent on a French scheme, is exempt from CSG and CRDS but remains liable for the 7.5% solidarity levy. The firm sets the rate with the owner's certificate of affiliation. See our page on CSG and social levies for non-residents.
  • The return. Rents are declared each year with the non-resident return: see our page on the tax return for non-residents.
— The sale

The levy on the capital gain, paid at the deed

The principle. Subject to international conventions, capital gains made by non-residents on the sale of real estate or of rights in such property are subject to a levy (French Tax Code, art. 244 bis A, I). For individuals, and for individual partners of companies whose profits are taxed in their name, the rate is 19% (III bis). Legal entities are subject to the corporate income tax rate, on a gain computed without any holding-period allowance but with a reduction of the acquisition price of 2% per full year for built property (III); those of the European Union or the EEA that meet the assistance conditions fall under the base and rate rules of corporate income tax applicable to French companies.

The calculation. For a taxpayer subject to income tax, the gain is determined as for a resident: sale price less costs, acquisition price increased by costs and works, holding-period allowance (French Tax Code, art. 244 bis A, II, referring to articles 150 U, 150 UB and 150 V to 150 VE). Exemption from income tax is acquired after twenty-two years of ownership and exemption from social levies after thirty years (French Tax Code, art. 150 VC).

Payment and the tax representative. The tax is paid when the deed is registered or, failing registration, within one month of the sale, under the responsibility of a representative established in France and accredited by the tax authorities (French Tax Code, art. 244 bis A, IV). The obligation to appoint a representative does not apply where the seller is domiciled, established or incorporated in a Member State of the European Union or of the EEA that has concluded with France an administrative assistance convention and a recovery assistance convention (IV bis). For a partnership, the assessment is made partner by partner.

Exemptions. A non-resident who is a national of a State of the European Union or of the EEA that has concluded an administrative assistance convention, and who was continuously tax-domiciled in France for at least two years at any time before the sale, is exempt within the limit of one residence and EUR 150,000 of net taxable gain, if the sale takes place no later than 31 December of the tenth year following departure, or with no time limit if they have had free availability of the property since at least 1 January of the year before the sale (French Tax Code, art. 150 U, II, 2°). An owner leaving France may also sell their main residence in France without the levy if they move to a Member State of the European Union, or to a State that has concluded with France the required administrative and recovery assistance conventions and is not a non-cooperative State or territory, sell no later than 31 December of the year following departure and have not made the property available to third parties in the meantime (French Tax Code, art. 244 bis A, I, 1). The text prohibits combining these two exemptions in either direction (French Tax Code, art. 244 bis A, I, 1 and II, 1°). The EUR 15,000 sale price threshold also exempts small sales (French Tax Code, art. 150 U, II, 6°).

Rights in companies. The levy also covers the sale of shares in unlisted companies whose assets, at the close of the three preceding financial years, consist mainly, directly or indirectly, of real estate or real estate rights located in France (French Tax Code, art. 244 bis A, I, 3, h). A foreign company that holds a building in France is therefore within scope.

— Holding: real estate wealth tax and companies

What it costs to keep the property

  • The real estate wealth tax (IFI). Non-residents are subject to it on their real estate and real estate rights located in France, and on company shares in proportion to the value of such property, as soon as the net taxable value of that wealth exceeds EUR 1.3 million (French Tax Code, art. 964 et seq.). Acquisition debts and certain loans are deductible. See our page on the IFI for non-residents and foreign companies.
  • The 3% tax on entities. A legal entity, French or foreign, that owns real estate or real estate rights in France directly or indirectly is exposed to the annual 3% tax on their market value (French Tax Code, art. 990 D), unless the exemption of article 990 E applies, which most often requires an annual declaration of the property and of its holders. A company established outside France is also subject to corporate income tax on the income of the property. See our page on the foreign company in France.
  • The French SCI. A société civile immobilière subject to income tax, some of whose partners are non-residents, is liable for the levy on the capital gain in proportion to the rights held by its non-resident partners (French Tax Code, art. 244 bis A, I, 2, c); the partners are taxed personally on the rents, under the transparency rule of article 8.
  • Transfer on death or by gift. A building located in France is in principle within the scope of French gift and inheritance tax, even if the owner and the heirs live abroad, subject to the applicable treaties; estate treaties, such as the one with Belgium, allocate the taxing rights: see France-Belgium estate tax and the tax treaty atlas.
— Before the courts

Two recent decisions on the levy of article 244 bis A

The levy is disputed before the courts on the price and on the way the tax authorities collect it. These two decisions set markers.

  • The price in the deed prevails. To compute the gain subject to the levy of article 244 bis A, the sale price is the one stated in the deed, unless the tax authorities prove that the price was concealed; they cannot depart from it to substitute the market value of the property (Conseil d'État, 9th and 10th chambers sitting together, 24 February 2026, no. 496482, in French).
  • Corporate income tax or levy, not both for the same gain. For a foreign company that sells a building located in France, the tax authorities cannot collect concurrently the additional corporate income tax and the levy of article 244 bis A due on the same gain, the levy being credited against corporate income tax; discharge of the levy on that ground has no effect on the condition of evaded duties for the penalty of article 1761, which is maintained in principle for a company that had neither filed the gain return nor paid the levy (Paris Administrative Court of Appeal, 5th chamber, 29 May 2026, no. 25PA01835, in French).
— What you need to understand

The property is in France, and so is the tax

A non-resident is taxable in France only on French-source income. Real estate is the first example: rents from property located in France, the capital gain on its sale, shares in companies that hold it. The non-resident chooses neither the place nor the timing of these taxes, but does choose how to hold the property, when to sell and how to prepare the sale.

What the firm checks first: the date and price of acquisition, the costs and works that can be justified, the holding period, whether the seller is a European national, the years of residence in France, and the way the property is held (directly, through a société civile immobilière, through a foreign company). On these depend the possible exemption, the tax representative and the settlement of the tax at the deed.

— The situations we handle

Five profiles of non-resident owners

Expatriate who keeps a home in France

A French national living abroad lets or keeps their residence in France: property income, then, on sale, a possible exemption for the main residence transferred within the statutory period.

Foreigner investing in France

Purchase directly or through a company, furnished or unfurnished letting, sale after a few years: the capital gain calculation and the tax representative are prepared at the time of purchase.

European national who has left France

Former resident of France for at least two years: EUR 150,000 exemption on the capital gain on a home, subject to conditions of timing or free availability.

Non-resident heirs

A building received by inheritance and sold: the declared value becomes the acquisition price; the levy is calculated on the difference with the sale price.

Holding through a company

French SCI subject to income tax, or foreign company: the levy and the other taxes are determined at the level of the partners or of the company, as the case may be.

— Frequently asked questions

What we are asked about non-residents' property

Must a non-resident appoint a tax representative to sell property in France?

In principle, yes: the tax is paid at the deed under the responsibility of a representative established in France and accredited (French Tax Code, art. 244 bis A, IV). The obligation does not apply where the seller is domiciled, established or incorporated in a State of the European Union or of the EEA bound to France by the administrative and recovery assistance conventions required by the text (IV bis).

What is the tax rate on a non-resident's real estate capital gain?

19% for an individual, in addition to social levies, after the holding-period allowance (French Tax Code, art. 244 bis A, III bis, and art. 150 VC). A legal entity is subject to a rate linked to corporate income tax.

Can a non-resident be exempt from capital gains tax on a residence in France?

In two cases: when they sell the main residence they occupied at the time of their departure, within the period and on the conditions of article 244 bis A, I, 1; or, if they are a national of the European Union or of the EEA and were domiciled in France for two continuous years at any time before the sale, within the limit of EUR 150,000 of net gain and one home (French Tax Code, art. 150 U, II, 2°). The text prohibits combining the two.

Is rent from property in France taxed at the scale rates?

It is taxed at a minimum of 20%, then 30% beyond the upper limit of the second bracket of the scale, unless the taxpayer shows a lower average rate on all of their income (French Tax Code, art. 197 A).

Must the IFI be declared when living abroad?

Yes if the net taxable value of the real estate and real estate rights located in France exceeds EUR 1.3 million on 1 January. Company shares are taken into account in proportion to the value of the French real estate they hold.

Does the tax treaty of my country of residence change the rule?

For income and gains from a building, treaties generally leave taxation to the State where it is located. They mainly operate on the elimination of double taxation in the country of residence. The exact text can be read in the firm's atlas.

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Property in France to sell, let or pass on from abroad?

A confidential initial discussion with Jonathan Bensaid, member of the Paris and Geneva bars, who advises non-resident owners.

Request an initial discussion The non-resident guide

© BENSAID Avocats. The information on this site does not constitute legal advice. Sources: French Tax Code, art. 150 U, 150 VC, 197 A, 244 bis A, 964 et seq., 990 D et seq.; Conseil d'État, 24 February 2026, no. 496482; Paris Administrative Court of Appeal, 29 May 2026, no. 25PA01835. Law as at 6 October 2026.