Capital Gains Tax on Property Sales in France Clarified

Taxation of French Property Sales for Residents

Individuals who reside in France are subject to capital gains tax (CGT) when they sell a property. The tax is calculated based on the difference between the purchase price and the sale price, minus any applicable expenses. The tax rate is progressive, ranging from 19% to 34.5%.

Taxation of French Property Sales for Non-Residents

Non-residents are subject to a flat rate of 19% CGT on the sale of French property. Additionally, they are subject to a 7.5% "social contribution" tax. These taxes are deducted directly from the proceeds of the sale.

Exemptions and Reductions

There are certain exemptions and reductions available for both residents and non-residents. These include:

• Exemption for main residences sold after 15 years of ownership
• Reduction for long-term ownership (lower rates for properties held for more than 5 years)
• Exemption for certain types of property, such as agricultural land and historical monuments

Reporting and Payment

Capital gains tax must be reported to the French tax authorities within 60 days of the sale. The tax is due within 30 days of filing the return.

Professional Advice Recommended

Due to the complexities of French property taxation, it is advisable to consult with a qualified tax advisor or accountant to ensure compliance with all relevant laws and regulations.