Understanding Capital Gains Tax for Non-Residents in France
If you’re a non-resident selling real estate in France, it’s important to understand how capital gains tax (CGT) applies to your situation. While the tax rules are largely the same for residents and non-residents, there are a few key differences — especially in terms of legal obligations, available exemptions, and cross-border regulations.
When you sell a property in France for more than you originally paid, the profit — or capital gain — is subject to tax. As of today, the combined rate for non-residents is 36.2%, which includes 19% capital gains tax and 17.2% in social charges. However, some countries outside the European Economic Area (EEA) may benefit from reduced or exempted social charges under specific bilateral agreements.
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
Residency status doesn’t exempt you from French taxation. If the property is located in France, the gain is taxable in France, even if you live in the UK, the US, Switzerland, or elsewhere. That said, many tax treaties exist to avoid double taxation, so it’s essential to check how French tax obligations interact with those of your country of residence.
Another key point: if you are a non-resident and your capital gain exceeds €150,000, and you are not a tax resident in the EU, EEA or Switzerland, you are legally required to appoint a fiscal representative (“représentant fiscal accrédité”). This representative ensures that the French administration receives accurate and compliant reporting and is jointly liable with you for the tax due. French Tax Online is officially accredited by the French Ministry of Finance to act as a fiscal representative and can assist you throughout the process.
Why Appoint a Tax Representative When Selling French Property?
If you’re a non-resident selling real estate in France, French law may require you to appoint an accredited tax representative — and even when it’s not strictly mandatory, doing so can make a significant difference.
A tax representative is legally required when the sale price exceeds €150,000 and the property has been owned for less than 30 years, provided you’re not a resident of the EU, EEA, or Switzerland. This rule applies even if you don’t make a profit. The goal is to ensure that French tax authorities receive accurate declarations and that any tax owed is correctly paid.
But beyond simple compliance, working with a professional tax representative can help you avoid costly mistakes and reduce your tax liability. Calculating French capital gains tax isn’t always straightforward — it involves more than subtracting the purchase price from the sale price. Notary fees, agency commissions, and eligible renovation work can all increase your acquisition cost and lower the taxable gain. Long-term ownership can also trigger automatic allowances, but only if they’re properly applied.
At French Tax Online (FTO), we guide you through the entire process — from reviewing your documents to filing your declarations and dealing directly with the tax office if needed. We make sure your gain is calculated correctly, exemptions are properly claimed, and nothing is left to chance. You stay informed at every step, with no hidden actions or last-minute surprises.
Many sellers leave money on the table by missing deductions, misreporting figures, or assuming that certain tax reliefs apply when they don’t. Our role is to help you pay only what you owe — no more, no less — while giving you peace of mind that everything is handled professionally and in full compliance with French law.
Exemptions and Reductions Available to Non-Residents
Although non-residents are subject to capital gains tax in France, they are not without options when it comes to reducing their tax liability — and in some cases, avoiding it altogether. The French tax code provides several mechanisms for exemption or reduction, many of which apply equally to residents and non-residents.
One of the most significant factors that can reduce or eliminate capital gains tax is the duration of property ownership. As a general rule, capital gains tax (the 19% portion) is progressively reduced after five years of ownership and becomes fully exempt after 22 years. The social charges (17.2%) follow a separate scale, and are fully exempt after 30 years. These abatements are automatic and calculated by the notaire during the sale process.
However, this progressive tax relief does not apply to properties owned through companies such as French SCI taxed under the corporate tax regime (IS) or foreign entities. In those cases, the exemption rules for individuals do not apply, and a different tax treatment must be considered.
Non-residents can also benefit from an exemption when selling a former main residence in France — but this is only possible under specific conditions. For example, if you moved abroad and sell your former primary residence within a “reasonable time” (typically within one year), and you haven’t rented it out in the meantime, the sale may be fully exempt from capital gains tax. This exemption may also require that you were previously tax-resident in France and that the sale is your only property there.
There is another potential exemption for EU and EEA residents who sell a French property. If the seller is an individual and has been fiscally resident in France for at least two years at some point before the sale, and the sale occurs within 10 years of their departure, they may benefit from an allowance up to €150,000 of net taxable gain, provided certain administrative and ownership conditions are met.
In all cases, the status of your residency, the use of the property, and the duration of ownership are crucial in determining what you owe — and what you may avoid. While some abatements apply automatically, others require proper documentation, specific timing, and formal requests through your notaire or fiscal representative.
How Does France Compare to Other Countries
Many non-residents who own property in France are also familiar with how capital gains tax works in their country of residence. When compared internationally, France’s capital gains tax regime sits somewhere in the middle. The combined 36.2% rate (including social charges) is higher than in countries like Portugal or Germany but generally lower than the top rates found in places like the United States or the United Kingdom, especially when surtaxes or state-level taxes are considered.
However, what sets France apart is its strict documentation requirements and the fact that the tax is due immediately upon sale. There’s little room for retrospective planning. If you want to reduce your capital gains tax burden as a non-resident, it’s essential to act before the sale — not after.
One of the most effective strategies is to maximize your deductible costs. That means carefully tracking all your eligible property-related expenses over the years: notary fees, agency commissions, major renovation work, and any other costs that can legally increase your acquisition value and reduce the taxable gain. If you’ve held the property for more than five years, and don’t have receipts for the work, French tax law allows a flat 15% deduction on the purchase price — a valuable option that’s often overlooked.
Another approach is to time your sale strategically. Since the French system offers progressive exemptions over time — with full tax relief after 22 years for capital gains tax and 30 years for social charges — holding on to your property just a little longer can sometimes make a significant difference. For high-value properties, delaying the sale by even a few months may move you into a more favorable tax bracket.
If you once lived in the property as your main residence before moving abroad, you might also qualify for partial or full exemption — provided you meet the criteria and sell within a defined time period. In that case, providing official proof of residence (utility bills, tax returns, etc.) will be essential.
Finally, if you’re still in the planning phase and haven’t yet bought or sold, consider consulting a tax advisor to optimize the ownership structure. For some non-residents, purchasing through an SCI (Société Civile Immobilière) or as a couple with a well-defined ownership split can provide flexibility and tax benefits down the line.
FAQ: Capital Gains Tax in France for Non-Residents
Do non-residents have to pay capital gains tax in France?
Yes. If you sell a property located in France, you must pay capital gains tax in France, even if you live abroad. The standard rate is 19%, plus 17.2% in social charges, totaling 36.2%. However, depending on your country of residence, some or all of the social charges may be waived.
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
Are there any exemptions for non-residents?
Non-residents may benefit from several exemptions. If the property was your main residence before leaving France, and you sell it within a certain period, you may be fully exempt. In other cases, you may qualify for a €150,000 exemption if you were a former French tax resident and meet specific conditions. Long-term ownership also provides automatic reductions, with full relief after 22 years for capital gains tax and 30 years for social charges. To read : Taxes on capital gains in LMP
What if I live outside the EU?
If your taxable capital gain exceeds €150,000 and you live outside the EU, EEA or Switzerland, you must appoint a fiscal representative approved by the French tax authorities. This representative is jointly liable for the correct declaration and payment of the tax and will usually charge a fee for their services.
How can I reduce the taxable gain?
You can reduce your taxable capital gain by adding deductible costs to your acquisition price. These may include notary fees, agency commissions, and renovation work — either with actual receipts or a 15% flat-rate deduction if you’ve held the property for more than five years. The notaire will apply these deductions when calculating your tax due.
Do I need to declare the sale in my home country?
In most cases, yes. While you’ll pay capital gains tax in France, you may also need to declare the sale in your country of residence, depending on its tax laws. However, many countries have double taxation treaties with France, allowing you to offset the French tax against your local liability. To read : The French real estate capital gain for UK tax residents and French Taxes for US Expats
When is the capital gains tax paid?
The tax is paid at the time of sale, directly by the notaire. The gain is calculated, the tax is withheld, and the net amount is transferred to you. There is no separate payment deadline or annual return to complete in France — the process is handled during the transaction.