The real-estate capital gain realised by an individual on the sale of a property is taxed under a specific regime set out in articles 150 U and following of the French Tax Code. The overall tax rate is 36.2% (19% income tax + 17.2% social levies), increased by a progressive surtax (2% to 6%) for net gains above €50,000. Several holding-period allowances lead to a progressive exemption: 22 years for income tax (allowance of 6%/year from the 6th to the 21st year + 4% in the 22nd), 30 years for social levies. Several exemptions exist — the best known being that of the principal residence (Tax Code art. 150 U II 1°). This page summarises the applicable rules.
The regime for real-estate capital gains of individuals rests on articles 150 U to 150 VH of the Tax Code. The gross capital gain is the difference between the sale price (reduced by costs and taxes) and the acquisition price (increased by costs and substantiated works). This gross gain is then reduced by the holding-period allowances, which lead to a full exemption after 22 years (income tax) or 30 years (social levies).
The overall rate is 36.2% (19% income tax + 17.2% social levies), increased by a progressive surtax of 2% to 6% for net taxable gains above €50,000. But numerous exemption cases exist: principal residence (the most important), first sale of a dwelling other than the principal residence subject to conditions, sale of a dwelling by modest-income retirees or disabled persons, sales for social housing, expropriations, and several other specific cases.
The firm structures high-stakes real-estate disposals to optimise the applicable regime: characterisation of the principal residence, coordination with a property-dealer operation, trade-off between a direct sale and a sale through an SCI, anticipation of exemption cases.
Gross capital gain = sale price (reduced by the costs and taxes borne by the seller) − acquisition price (increased by costs and works). The acquisition price may be increased on a flat-rate basis (works: 15% of the acquisition price after 5 years of holding, or the actual amount on supporting documents) or by acquisition costs (7.5% flat rate or actual). These increases reduce the taxable base.
Income tax: allowance of 6% per year of holding from the 6th to the 21st, then 4% in the 22nd year → full exemption after 22 years. Social levies: a different progressive allowance → full exemption after 30 years (1.65%/year from the 6th to the 21st + 1.60% in the 22nd + 9%/year beyond). Consequence: between 22 and 30 years, income tax is exempt but social levies remain partly due.
Article 150 U II 1° of the Tax Code exempts the gain on the sale of the owner's habitual and effective residence at the time of sale. Strict conditions: effective occupation on the day of sale (or shortly before where the property is put up for sale together with a move), no rental or professional use. Special cases: secondary residences (not exempt), houses under construction, property held in split ownership.
A progressive surtax applies to net taxable gains above €50,000: 2% from €50,000 to €60,000, 3% from €60,000 to €100,000, 4% from €100,000 to €150,000, 5% from €150,000 to €200,000, 6% above €200,000 (Tax Code art. 1609 nonies G). This surtax can significantly increase the overall tax burden.
French tax non-residents are taxed on French real-estate gains under a specific regime in article 244 bis A of the Tax Code: a withholding of 19% (EU/EEA) or 19% with a fiscal representative depending on the case. For social levies, it is affiliation to a social-security scheme that governs — not tax residence alone. Since the De Ruyter ruling (CJEU 26 February 2015, case C-623/13) and articles L.136-1 and following of the Social Security Code, a non-resident affiliated to the social-security scheme of another EU/EEA Member State or of Switzerland is exempt from CSG/CRDS on the French gain and is only liable for the 7.5% solidarity levy (substituted for CSG/CRDS by the 2019 Social Security Financing Act for this population). This applies to sales of buildings and of real-estate-heavy SCIs. Coordination with the applicable bilateral treaty.
The firm structures high-stakes real-estate operations by integrating capital-gains taxation: characterisation of the principal residence (attention to effective occupation), timing of the sale dates (holding period to optimise the allowances), coordination with the other mechanisms (property dealer's undertaking to resell, split ownership, transfer), management of the surtax.
For non-residents selling a French property, we coordinate the calculation (Tax Code art. 244 bis A), any fiscal-representative mandate, the coordination with the bilateral treaty, and the defence against social levies that are questionable in light of the De Ruyter case law.
The overall rate is 36.2% on the taxable gain: 19% for income tax (Tax Code art. 200 B) + 17.2% for social levies. A progressive surtax of 2% to 6% is added for net gains above €50,000 (Tax Code art. 1609 nonies G).
Full exemption occurs after 30 years of holding (income tax + social levies). At 22 years, income tax is exempt but the social levies remain partly due (decreasing rate from 22 to 30 years). At 30 years, no levy is due. Important: these periods are calculated in full years from the acquisition date.
The main exemptions (Tax Code art. 150 U II): (1) sale of the principal residence (1°); (2) first sale of a dwelling other than the principal residence subject to reinvestment conditions (1° bis); (3) sale for social housing; (4) sale by modest-income retirees (≤ certain reference-taxable-income thresholds); (5) expropriations; (6) sale in the event of disability, retirement pension or low reference taxable income. Around ten cases exist — a case-by-case analysis.
Article 150 U II 1° of the Tax Code exempts the sale of the owner's habitual and effective residence at the time of sale. The central criterion: effective occupation as principal residence on the day of the sale (case law accepts a short period of non-occupation between the listing and the effective sale if justified by the sale efforts). A secondary residence, a rental property, or a property occupied by a third party are not covered.
Taxable capital gain = (Sale price − costs and taxes) − (Acquisition price + acquisition costs + substantiated works). The acquisition price may be increased on a flat-rate basis by 15% for works after 5 years of holding (unless a higher actual amount is proven on supporting documents). Acquisition costs may be taken into account at the 7.5% flat rate or at the actual amount. The gross gain is then reduced by the holding-period allowances to arrive at the net taxable gain.
Yes. Article 244 bis A of the Tax Code provides a specific regime: a 19% withholding at the time of sale (with a fiscal representative for non-EU/EEA residents). For social levies, it is social affiliation that prevails — not tax residence: since the De Ruyter ruling (CJEU 26 February 2015, case C-623/13) and articles L.136-1 and following of the Social Security Code, a non-resident affiliated to the social-security scheme of another EU/EEA/Swiss State is exempt from CSG/CRDS and is only liable for the 7.5% solidarity levy. The holding-period allowances apply under the same conditions as for residents. See our analysis of CSG & social levies of non-residents.
The reporting and payment of the capital gain take place at the time of sale through the notary, who draws up form 2048-IMM and remits the tax to the authorities. The taxpayer has no specific subsequent return to file (the withholding is in full discharge of the tax). For non-residents, the arrangements may include the intervention of an accredited fiscal representative.
General framework: property dealer, VAT, transfer duties, capital gains.
Voir la page Property dealerProperty-dealer regime vs regime for individuals.
Voir la page Non-residents practiceTax Code art. 244 bis A regime for non-residents' capital gains.
Voir la page CSGInteraction with the De Ruyter case law for social levies.
Voir la pageA confidential initial consultation to calculate the capital gain, identify the applicable exemptions and decide on the disposal timetable.
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