French property capital gains tax: 19%, 17.2%, relief

Which sales are taxed and which are exempt

The tax applies to gains made by private individuals in managing their private assets: flats, houses and land, but also split ownership rights (usufruit (usufruct), nue-propriété (bare ownership)) and sales through an SCI (société civile immobilière, property holding company) that is not subject to corporation tax (service-public.gouv.fr).

The main exemptions are set out in section II of article 150 U of the CGI:

• the seller’s main residence “on the day of the sale” (1°), together with its outbuildings. Service-public specifies that this means the home occupied for most of the year;
• the first sale of a home other than the main residence (1° bis), if the seller has not owned their main residence in the previous 4 years and reinvests the proceeds within 24 months to buy or build their main residence;
• properties sold for €15,000 or less (6°), a threshold assessed on each owner’s share in the case of indivision (joint ownership);
• sales to a social housing body, until 31 December 2027 (7°).

Some pensioners and holders of the carte mobilité inclusion (disability mobility card) are also exempt, subject to means testing: for a sale in 2026, the 2024 revenu fiscal de référence (reference taxable income) must not exceed €12,793 for the first part (tax unit) (+ €3,428 per half-part), according to service-public.gouv.fr.

How to calculate the gross capital gain

The gross gain is the difference between the sale price and the purchase price (CGI, art. 150 V; BOI-RFPI-PVI-20-10).

Sale price: the price stated in the deed, less documented selling costs (for example the mandatory surveys).

Purchase price: the price paid, increased by (CGI, art. 150 VB, II):

• acquisition costs (registration duties, notary’s fees) at their actual amount or, as a flat rate, 7.5% of the purchase price (3°). The flat rate only applies to a purchase for value;
• building works (construction, reconstruction, extension, improvement) carried out by a firm, at their actual amount or, if the property is sold more than 5 years after purchase, a flat rate of 15% of the purchase price (4°). The BOFiP (official tax guidance) specifies that this flat rate is simply an option and requires no proof of the works.

For a property received by gift or inheritance, the purchase price is the value used to calculate the duties. For sales made from 15 February 2025, depreciation deducted under the location meublée non professionnelle (non-professional furnished letting) regime is added back, subject to conditions (service-public.gouv.fr).

Taper relief for length of ownership

Since 1 September 2014, the rates differ between income tax and social charges (BOI-RFPI-PVI-20-20, § 50 to 70; CGI, art. 150 VC):

In total, the income tax exemption is reached after 22 years of ownership, and the social charges exemption after 30 years. Official example: for 10 years of ownership, relief is 30% for income tax (6% × 5) and 8.25% for social charges (1.65% × 5).

The surcharge on gains over €50,000

Article 1609 nonies G of the CGI applies to taxable gains over €50,000, excluding building land. The threshold is assessed after taper relief for length of ownership, and on each person’s share for joint owners or unmarried partners (BOI-RFPI-TPVIE-20). The rate applies to the whole gain from the first euro, with smoothing at the bottom of each band:

In practice, the notaire (notary) calculates, declares and pays the capital gains tax at the time of the sale; the seller then reports the amount on their income tax return (service-public.gouv.fr).

Which professional to consult

The notaire calculates the gain, files the return and pays the tax when the deed is signed: this is who to ask before setting a net sale price. The agent immobilier (estate agent) helps you position the sale price, which directly determines the gain and whether it may exceed the €50,000 threshold.