Non-residents: selling in France and capital gains tax

The calculation: the rules for residents

The gain is calculated in the same way as for a resident (impots.gouv.fr; see our guide on plus-value immobilière (property capital gains)). The holding-period allowances are identical:

• income tax: 6% a year from the 6th to the 21st year, 4% in the 22nd; full exemption after 22 years;
• social security levies: 1.65% a year from the 6th to the 21st year, 1.60% in the 22nd, 9% a year thereafter; full exemption after 30 years.

The levy also covers the sale of shares in a company whose assets consist mainly of property in France (impots.gouv.fr; see our guide on cession de parts de SCI (selling shares in an SCI)).

The rates: 19% and social security levies

The levy under article 244 bis A of the CGI (code général des impôts, the General Tax Code) is 19% for individuals, and for partnerships in proportion to the rights of their partners who are individuals (BOI-RFPI-PVINR-20-20, § 50). Legal entities are subject to a rate aligned with corporation tax (§ 1 and 60).

Social security levies depend on the seller’s social security cover (impots.gouv.fr; BOI-RFPI-PVINR-20-20, § 80):

The exemption from CSG and CRDS (social contributions) has applied since 1 January 2019. For people covered by British social security, the BOFiP has maintained it since 1 January 2021 if they are nationals or legal residents of France, the United Kingdom or another EU State and are not covered by a French scheme (BOI-RFPI-PVINR-20-20, § 80). Above €50,000 of taxable gain, the 2% to 6% surtax also applies to non-residents (BOI-RFPI-TPVIE-20, § 10).

Exemption for the former main home

Since 1 January 2019, the gain on the home that was the main home in France at departure is fully exempt if (impots.gouv.fr):

• the sale takes place no later than 31 December of the year following the year in which the tax residence was transferred out of France;
• the home has not been made available to any third party, free of charge or for rent, between departure and the sale;
• the seller’s new residence is in an EU State or in a State bound to France by an administrative assistance agreement to combat tax fraud and evasion and an agreement on assistance in tax recovery.

The deed states the basis for the exemption, which removes the need to file a capital gains return; the seller can no longer claim the €150,000 exemption (impots.gouv.fr).

Exemption up to €150,000

Article 150 U, II, 2° of the CGI exempts the gain on a home located in France sold by a non-resident individual who is a national of the EU or the EEA (a State bound to France by an administrative assistance agreement), under the following conditions (impots.gouv.fr; service-public.gouv.fr):

• having been tax-resident in France continuously for at least two years at any time before the sale;
• selling no later than 31 December of the tenth year following departure, or with no time limit if the seller has had free use of the property since at least 1 January of the year preceding the sale;
• only one residence per taxpayer, with a cap of €150,000 of net taxable gain.

The cap applies per seller (co-owner in indivision (joint ownership), cohabiting partner, PACS (civil partnership) partner); a married couple selling a jointly owned property can be exempt up to €300,000 in total, since the tax authority accepts that the cap is assessed on each spouse’s share (§ 420). The exemption does not apply to a property held by a company, an SCI (property-holding company) for example. The fraction above €150,000 is subject to the levy, social security levies and, where applicable, the surtax; the exempt fraction is calculated separately for income tax and for social security levies (BOI-RFPI-PVINR-10-20, § 410 to 430).

Among the exemptions available to residents, set out in our guide on cas d’exonération (capital gains exemptions), non-residents keep in particular the one for prices of €15,000 or less and the one for sales to a social housing body. They cannot rely on the main-home exemption, the exemption for a first sale with reinvestment, or the one for people who have moved into a care home (BOI-RFPI-PVINR-10-20, § 190 and 200).

Return and payment by the notaire

The sale of a property is declared on form 2048-IMM-SD, and that of shares in a company whose assets are mainly property on form 2048-M-SD. The tax and social security levies are paid by the notaire at the time of sale. If they have other taxable income in France, the seller carries the gain over to box 3VZ of form 2042 C (impots.gouv.fr).

Outside the EU, Iceland and Norway, an accredited tax representative is in principle compulsory, except notably where the price is €150,000 or less. This threshold concerns the price, and a married couple counts as a single seller (BOI-RFPI-PVINR-30-20, § 170 to 225; see our guide on the représentant fiscal (tax representative)).

Recalculated example, a seller resident in Canada, not covered by social security in the EEA: sale price €400,000, purchase price plus costs €280,000, 10 full years of ownership. Gross gain: €120,000.

• Income tax: allowance of 30% (6% × 5), base €84,000, 19% levy = €15,960.
• Social security levies: allowance of 8.25% (1.65% × 5), base €110,100, 17.2% = €18,937.20 (€8,257.50 at 7.5% for someone insured in the EEA, Switzerland or the United Kingdom).
• Surtax: €84,000 falls between €60,001 and €100,000, 2% = €1,680.
• Total: €36,577.20, and a tax representative to appoint.

Which professional to consult

The notaire (notary) calculates the gain, checks the conditions for exemption, completes form 2048-IMM-SD and pays the tax at the signing of the deed. The agent immobilier (estate agent) organises the sale remotely and helps set the price, on which the gain, the surtax and the need for a tax representative depend. The calculateur de plus-value (capital gains calculator) gives an estimate.