Capital gains tax when selling property in France can apply when the sale price exceeds the property’s adjusted acquisition cost. For an international owner, the calculation is not simply the difference between purchase and resale prices. Acquisition costs, qualifying works, the holding period, tax residence and social-security position can all change the final amount due.
France generally retains the right to tax gains arising from French real estate, including when the seller lives abroad. This is especially relevant for second homes and investment properties.
Our article on French property taxes for foreign buyers covers the wider ownership framework. Here, the focus is specifically on capital gains at resale.
How a French property capital gain is calculated
The starting point is the difference between the sale price and the adjusted acquisition price.
The sale price is generally the amount stated in the deed. Certain seller-borne costs directly connected with the sale can be deducted when documented, including mandatory diagnostic costs, seller-paid agency fees and certain mortgage-release expenses.
The acquisition price may generally be increased by:
actual acquisition costs supported by evidence, or a flat 7.5% of the purchase price;
qualifying construction, reconstruction, extension or improvement works not already deducted for income-tax purposes;
a flat 15% works allowance where a built property has been owned for more than five years;
certain qualifying infrastructure, road or network costs.
These adjustments can materially change the taxable gain. Purchase and renovation records should therefore be retained throughout ownership.
Our article on the cost of buying property in Provence explains the wider acquisition-cost structure.
The standard income-tax rate is 19%
Once the taxable gain and any holding-period allowance have been calculated, the French income-tax element is generally charged at 19%.
This applies to taxable French real-estate gains realised by individuals, including non-residents. Residence abroad does not itself remove French tax because the property is situated in France, although an applicable treaty may still need to be considered.
The notaire normally calculates the gain, prepares the relevant declaration and pays the tax from the sale proceeds.
Holding the property longer reduces the taxable gain
Holding-period allowances begin after the fifth year.
For the 19% income-tax element, the allowance is:
6% for each year beyond the fifth through the twenty-first year;
4% for the twenty-second year.
The gain is fully exempt from income tax after 22 years.
For social levies, the allowance is 1.65% for each year beyond the fifth through the twenty-first year, 1.60% for the twenty-second year, then 9% for each year beyond the twenty-second.
Full exemption from social levies is reached after 30 years.
A property sold after 22 years may therefore escape the 19% income-tax charge while still carrying social levies until the 30-year point.
Social levies depend on the seller’s position
A taxable property gain can also be subject to French social levies at the standard rate of 17.2%.
An exception applies to people affiliated to a compulsory social-security system other than the French system in an EU or EEA country or Switzerland. Where the conditions are met, they are exempt from CSG and CRDS and instead remain subject to the 7.5% solidarity levy.
Current French guidance also confirms that qualifying UK residents continue to benefit from this CSG and CRDS exemption.
The seller’s social-security affiliation should therefore be checked before the gain is estimated.
Higher gains can attract an additional surtax
A separate surtax can apply where the taxable real-estate capital gain, after the relevant income-tax holding-period allowance, exceeds €50,000.
The surtax rises from 2% to 6%, with the highest rate applying once the taxable gain exceeds €260,000. It applies to qualifying gains on real estate other than building land.
For jointly owned property, the threshold and calculation are assessed according to each seller’s share of the taxable gain.
The surtax is separate from the 19% income-tax rate and any social levies.
Main residences and second homes are treated differently
A gain on the sale of a French principal residence is generally exempt when the statutory conditions are met. A second home or investment property is normally within the capital-gains regime unless another exemption applies.
For an owner who leaves France, a former principal residence can remain fully exempt in specific circumstances. The home must have been the seller’s principal residence in France when tax residence was transferred abroad. The sale must take place no later than 31 December of the year following the year of departure, and the property must not have been made available to a third party, whether free of charge or for payment, between departure and sale.
The new country of residence must be an EU Member State or another qualifying state or territory with the required administrative-assistance and mutual tax-recovery arrangements with France and must not be classified as a non-cooperative jurisdiction.
This exemption is separate from the specific €150,000 exemption available to some non-residents, and the same sale cannot benefit from both.
The €150,000 non-resident exemption has strict conditions
A separate exemption may apply to certain former French residents who are nationals of an EU Member State or another qualifying EEA state.
The seller must have been French tax resident continuously for at least two years at some point before the sale. The disposal must generally take place no later than 31 December of the tenth year following the year in which the seller transferred tax residence outside France.
After that period, the exemption can still apply without a time limit where the seller has had free disposal of the property since at least 1 January of the year preceding the sale.
It is limited to one French residence per taxpayer and up to €150,000 of net taxable gain per seller. Where spouses jointly own the property, each qualifying seller’s position is assessed separately.
The exemption does not apply where the home is held through a legal entity such as an SCI. Nationality, previous French tax residence, timing and ownership structure must therefore all be checked.
Non-resident sellers may need a fiscal representative
A non-resident seller may need to appoint an accredited fiscal representative.
Automatic exemptions currently include sellers resident in an EU Member State or qualifying EEA state, sales for €150,000 or less per seller, and sales fully exempt from both income tax and social levies because of the ownership period.
Where none applies, a fiscal representative may be required to take responsibility for the capital-gains declaration and related obligations.
The €150,000 threshold here refers to the sale price per seller, not the amount of the gain. It is separate from the €150,000 capital-gain exemption for certain former French residents.
The notaire will normally confirm whether a representative is required.
Renovation history can change the calculation
For a renovated Provence property, works can materially affect the taxable gain, but not every expense qualifies.
Eligible expenditure generally concerns construction, reconstruction, extension or improvement carried out by an enterprise. Routine maintenance and repair do not necessarily receive the same treatment, and costs already deducted for income-tax purposes cannot normally be used again when actual expenditure is claimed.
Where a built property has been held for more than five years, the seller can instead elect for the 15% flat-rate works addition. This forfait does not require proof that works were actually carried out or that they reached 15% of the purchase price.
For sales completed from 15 February 2025, an LMNP owner taxed under the real BIC regime must generally reintegrate depreciation previously deducted for tax purposes when calculating the taxable capital gain, before the holding-period allowance is applied. Specific exceptions remain for certain service-residence properties.
Ownership through an SCI changes what must be reviewed
An SCI does not automatically remove French capital gains tax.
Where an SCI remains within the income-tax regime and the private-property capital-gains framework applies to its individual shareholders, the holding period is generally measured from the date on which the SCI acquired the property.
An SCI subject to corporate income tax follows a different framework, where accounting depreciation and corporate-tax rules can materially alter the resale calculation.
Our article on buying property via an SCI in France explains the wider implications of this structure.
Estimate the net resale proceeds before accepting an offer
A seller should gather the tax information early enough to understand the likely net amount after completion.
The file should normally include:
the original acquisition deed;
evidence of acquisition costs where actual costs will be claimed;
qualifying renovation and improvement invoices;
information on any rental or LMNP history;
the ownership date and ownership shares;
the seller’s tax residence, nationality and social-security affiliation;
details relevant to any former-main-residence or non-resident exemption;
the ownership structure, including any SCI.
This gives the notaire and tax advisers a reliable basis for the calculation before the final deed.
Planning the resale of a French property
Capital gains tax on French property is driven by more than the increase in market value. The adjusted acquisition cost, holding period, social-security position, exemptions, ownership structure and size of the gain can all change the amount ultimately retained.
For an international owner, the useful approach is to calculate the likely tax position before accepting an offer, especially for a second home, a renovated property, a high-value gain, a former French residence or a property held through an SCI.
Understanding the resale tax early makes it easier to evaluate the real net proceeds and plan the next property decision with greater clarity.
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Sources
Impots.gouv.fr - Capital gains on French property for non-residents
Impots.gouv.fr - Real-estate capital gains tax rates and holding-period exemptions
Légifrance - Article 244 bis A of the French General Tax Code
Impots.gouv.fr - Fiscal representative requirements for non-resident sellers
Impots.gouv.fr - Capital gains calculation when selling furnished rental property
Impots.gouv.fr - Additional tax on high real-estate capital gains
This article is provided for general guidance only and does not constitute legal or tax advice. French capital-gains rules, exemptions, social levies, surtaxes and non-resident requirements may change or depend on the seller’s residence, nationality, social-security affiliation, ownership structure, property use and holding period. Sellers should verify their position with a French notaire and appropriately qualified tax adviser before completing a sale.
