Understanding Capital Gains Tax on French Property Sales
When you sell a property in France — whether you’re a resident or not — you may be liable to pay capital gains tax (CGT) on the profit made from the sale. This tax applies to the difference between the purchase price and the resale price, after accounting for eligible deductions such as notary fees, renovation work, and holding duration.
In France, the capital gains tax on real estate is composed of two parts:
- A 19% fixed rate for the standard capital gains tax;
- Plus 17.2% in social charges, for a total potential rate of 36.2%.
Note: For residents of the EU, EEA, Switzerland, or the UK, the social contributions may be replaced by a 7.5% solidarity levy instead. Learn more
However, there are numerous exceptions and reductions available depending on the type of property, how long you’ve owned it, and whether it’s your main residence. For instance, after 22 years of ownership, the capital gains tax portion is entirely exempt, and after 30 years, social charges no longer apply.
Understanding how this tax is calculated — and how to legally reduce it — is essential to avoid costly mistakes. To help property owners make accurate estimations, we’ve developed an interactive capital gains tax simulator, available here: Use the Capital Gains Tax Simulator
This tool allows you to input your purchase and sale details and instantly receive an estimate of the taxes owed, taking into account applicable allowances and duration of ownership.
How to Calculate Capital Gains Tax in France
Although the principle behind capital gains tax is simple — you’re taxed on the profit from selling your property — the actual calculation in France involves several important considerations. It’s not just a matter of subtracting the purchase price from the sale price. The French tax authorities allow (and sometimes require) various adjustments that can significantly affect the final amount due.
It all starts with determining the acquisition value of the property. This includes the original purchase price, of course, but also associated costs like notary fees and registration taxes. If you’ve done substantial renovation work, you may be able to include those expenses as well — either by providing invoices or, if you’ve held the property for more than five years, by applying a standard 15% increase to the purchase value. To read : Deductible charges on French income tax
The next step involves looking at the sale price, but this too can be adjusted. If you paid agency fees or diagnostic costs, or if you’re a non-resident who had to appoint a tax representative, these expenses can be deducted from the sale amount to arrive at your taxable gain.
Once you’ve determined the difference between the adjusted purchase and sale prices, you obtain the gross capital gain. From there, the French system applies a series of reductions based on how long you’ve owned the property. These allowances increase over time, gradually reducing the taxable base. After 22 years, you’re entirely exempt from capital gains tax, and after 30 years, social charges are also eliminated.
The remaining amount — after all deductions and abatements — is subject to tax. Typically, this includes a 19% capital gains tax and 17.2% in social charges. For high-value gains (over €50,000), an additional surtax may apply, ranging from 2% to 6%, depending on the amount.
Given the complexity of this calculation, especially if you’re unsure which deductions or abatements apply to your case, we recommend using our Capital Gains Tax Simulator. It’s a simple tool that guides you step by step and gives you an estimate tailored to your situation. You can try it here: Capital Gains Tax Simulator
To read : Taxes on capital gain in LMNP and Legislation for a “Réel Simplifié” in case of furnished rental
Can You Avoid Capital Gains Tax?
While capital gains tax may seem inevitable when selling a property in France, there are several cases where you can partially or even fully avoid paying it. The French tax code includes multiple exemptions and reductions, but eligibility depends heavily on your personal situation and the nature of the property.
The most well-known exemption concerns your main residence — but only when it has been your principal home while you were a French tax resident. If the property you’re selling was your official main residence as a resident of France for tax purposes up until the date of sale, the capital gain is generally not taxable, regardless of the amount or how long you’ve owned it.
This exemption requires clear and official proof that the property was your habitual and primary place of residence during that time — such as utility bills, tax returns, or insurance contracts.
Important: This relief does not apply simply because the property is your only home in France. What matters is your actual residence status and use of the property while you were subject to French tax.
If the property is not your primary residence, the key factor that can reduce your tax burden is the duration of ownership. As mentioned earlier, the longer you’ve held the property, the less you’ll pay. After six years, the French tax authorities begin applying automatic abatements, which increase annually. These lead to a full exemption after 22 years for the capital gains tax (19%) and after 30 years for social charges (17.2%).
However, these time-based abatements only apply to individuals. They do not apply to properties held through certain legal entities, such as French companies taxed under the corporate tax regime (e.g., SCI à l’IS) or foreign companies. In such cases, different rules apply, and the capital gain remains fully taxable regardless of how long the property has been owned.
In some specific cases, additional exemptions may apply. For example, if the sale price is relatively low (under €15,000 per seller), or if the property is being sold after an expropriation or due to serious health or financial hardship, you may qualify for special treatment. There are also cases where a non-resident can benefit from partial exemption if the property was formerly their main home and the sale occurs within a certain timeframe after leaving France.
It’s worth noting that these exemptions are not always applied automatically. You or your notaire must ensure that the correct documentation is provided and that the proper legal basis for the exemption is referenced in the sale documents. Mistakes or omissions at this stage can lead to unnecessary tax payments — or disputes with the administration later.
FAQ: Calculating Capital Gains Tax in France
What is the current capital gains tax rate in France for property sales?
For most property sales, capital gains are taxed at a flat rate of 19%, to which are added 17.2% in social charges, bringing the total to 36.2%. For large capital gains above €50,000, a surtax ranging from 2% to 6% may apply. However, these rates can be reduced or eliminated entirely depending on the holding period or applicable exemptions.
Note: For residents of the EU, EEA, Switzerland, or the UK, the social contributions may be replaced by a 7.5% solidarity levy instead. Learn more
Do non-residents pay capital gains tax in France?
Yes. Non-residents selling property in France are subject to the same capital gains tax as residents. If the gain exceeds €150,000 and the seller is from outside the European Economic Area (EEA), a tax representative (représentant fiscal accrédité in French) must be appointed. Certain partial exemptions may apply if the property was once the seller’s main residence before leaving France.
How long do I need to hold a property in France to avoid capital gains tax?
To qualify for full exemption from capital gains tax, you must have owned the property for at least 22 years. To be exempt from social charges, you must hold the property for 30 years. These durations are calculated from the date of acquisition to the date of sale, and partial reductions apply progressively from the 6th year onward.
What documents do I need to calculate my capital gain?
You will need:
- The original purchase deed, including purchase price and notary fees
- The “décompte notaire” from the purchase
- Any invoices for renovation or construction work
- The pre-sale contract (compromis de vente or promesse de vente in French)
- Proof of use as a main residence (if applicable)
- Any documentation showing agency fees or selling costs
Accurate records are essential, as the notaire or the tax representative uses them to determine your taxable gain and apply the correct abatements.
What if I disagree with the tax calculated by the notaire?
In most cases, the notaire’s calculation is final and based on legal formulas. However, if you believe there has been an error or omission — for example, failure to apply an exemption or include deductible costs — you can challenge the calculation with supporting documentation. In more complex disputes, especially involving foreign sellers, it may be appropriate to seek legal or tax expert advice.
Is there a tool to estimate my capital gains tax in France?
Yes, French Tax Online provides a free and easy-to-use capital gains tax simulator. You can input your purchase and sale data, and the tool will instantly calculate an estimate, including holding period abatements and applicable social charges.
Try it here: Capital Gains Tax Simulator