Income tax - Real estate capital gains
Verified 07 April 2022 - Legal and Administrative Information Directorate (Prime Minister)
The capital gain you realise by selling real estate is taxable, except for your principal residence. You can benefit from exemptions depending on the nature of the property or your personal situation.
You are subject to income tax for capital gains realised in the course of the management of your private property in the following cases:
- Sale of real estate (flat, house, land)
- Sale of rights attaching to real property (easements for example)
- Sale through a civil real estate business (not subject to business tax) or a real estate investment fund (FPI)
- Exchange of goods, sharing or business
Please note
real estate surplus value is subject to social.
The main exemptions from capital gains tax on real estate are related to the nature of the property sold, the quality of the seller and the purchaser.
Most exemptions are conditional.
Exemptions from the transferred property
You are exempt in the following cases:
- Sale of main residence and outbuildings (garages, parking areas, courses, etc.)
- Sale of a home other than the principal residence, if you use the sale price to buy or build your principal home within 2 years
In addition, you must not have owned your principal residence in the 4 years preceding the sale. - Sale of an elevation right until 31 December 2022
- Exchanged under certain consolidation operations
- Property with a selling price not exceeding €15 000
- Well held for more than 22 years
Please note
property that has been held for more than 30 years is also exempt from social security contributions.
Buyer Exemptions
You are exempt in the following cases:
- Property sold directly or indirectly to a social housing agency (until December 31, 2022)
- Sold to a private operator who undertakes to realise or complete social housing (until 31 December 2022)
- Property expropriated on condition that all compensation is repaid by the acquisition, construction, reconstruction or extension of one or more buildings within 12 months
- Property transferred by an individual who has exercised his or her right of abandonment under certain conditions, subject to the full cost of the transfer being repaid by the acquisition, construction, reconstruction or extension of one or more buildings within 12 months
Seller Exemptions
You may be exempt if you are in one of the following situations:
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You receive an old age pension
You are exempt if your income does not exceed €11,276 for 1re share family quotient (+ €3,011 per additional half share) in 2020 for an assignment in 2022.
You must not be subject to theIFI: titleContent.
You have a mobility inclusion card (CMI)
You are exempt if your income does not exceed €11,276 for 1re share family quotient (+ €3,011 per additional half share) in 2020 for an assignment in 2022.
You must not be subject to theIFI: titleContent.
You live in an elderly care facility
You are exempt, subject to conditions, in the event of the transfer of your former principal residence.
Your income must not exceed €26,462 for 1re share family quotient (+ €6,182 for 1re additional half share and €4,867 for the next half-shares) in 2020 for a sale in 2022.
You must not be subject to theIFI: titleContent.
You are staying in an accommodation for disabled adults
You are exempt, subject to conditions, in the event of the transfer of your former principal residence.
Your income must not exceed €26,462 for 1re share family quotient (+ €6,182 for 1re additional half share and €4,867 for the next half-shares) in 2020 for a sale in 2022.
You must not be subject to theIFI: titleContent.
You are a non-resident of France
You're exonerated.
You did not own your principal residence in the previous 4 years
The sale of a dwelling other than the principal residence is exempt. But you must use the sale price to buy or build your main home within 2 years.
The capital gain is equal to the difference between the following amounts:
- Sales price of the property
- Asset acquisition price
If you realise a capital loss, you can deduct it from a capital gain realised when you sell another property only exceptionally. For example: block sale of a building acquired by successive fractions.
Sales price
The selling price is the price indicated in the deed.
You can deduct from the price, on supporting documents, the fees paid at the time of the sale (for example, the fees related to the required diagnostics).
The selling price must be increased by the amounts paid to your profit (for example, a predatory payment made by the buyer to the current tenant).
Acquisition price
Good
If you bought the property, the purchase price is indicated in the bill of sale.
The following fees may be increased, upon proof:
- Expenses and allowances paid to the seller on purchase
- Acquisition fees (registration fees, notary fees). If you cannot justify them, you can deduct a lump sum of 7.5% the purchase price.
- Construction expenditure (construction, reconstruction, expansion, improvement under conditions). For property held for more than 5 years, you can deduct either the actual amount justified or a lump sum payment 15% the purchase price.
- Road, network and distribution costs (e.g. development costs for housing development)
Received Free
If you received the property by gift or estate, the acquisition price is the value used to calculate the estate or donation rights.
Slackening
The surplus value is reduced by abasement which depends on the time you owned the property.
The plate is different for the calculation of income tax and social levies.
Detention period | Reduction rate per year of detention | |
---|---|---|
Income Tax Base | Social tax base | |
Under 6 years | 0 | 0 |
From 6e to 21e year | 6% | 1.65% |
22e past year | 4% | 1.6% |
Beyond 22e year | Exemption | 9% |
Beyond 30e year | Exemption | Exemption |
Example :
You sold a property that you had owned for 10 years. You have realised with this sale a surplus value of €10 000.
- You receive a tax rebate on 6% per year ofe to 10e year 30% (6% x 5). This will give you a discount of €10 000 x 30%either €3,000. You will then report income €7 000 ( €10 000 - €3,000).
- You benefit from a deduction on social contributions from 1.65% per year ofe to 10e year 8,25% (1.65% x 5). This will give you a discount of €10 000 x 8,25% either €825. You will have to pay social levies on the basis of €9,175 (€10 000 - €825).
Exceptional drop
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Slaughter linked to city planning or revitalisation operations
An exceptional reduction of 70% shall apply in areas covered by a major city planning operation or a revitalisation operation.
The purchaser undertakes to demolish the existing buildings to reconstruct one or more collective housing buildings, under certain conditions.
Promise to sell must be signed between 1to January 2021 and December 31, 2023.
The allowance is applicable to determine the base of income tax and social levies.
This allowance shall apply to the capital gain depending on the duration of the holding of the property.
It may be increased to 85% if social housing (or intermediate housing) represents at least 50% of the total surface of the buildings.
The allowance may not apply if the seller and buyer have family ties (for example, if they are couple).
FYI
the construction work must be completed within 4 years from the date of acquisition.
Exceptional slackening in tense zone
An exceptional reduction of 70% applies in zones A or A bis where the purchaser undertakes to demolish existing buildings in order to reconstruct one or more collective buildings, under certain conditions.
Promise to sell must be signed between the 1to January 2018 and December 31, 2020.
The transfer must be completed by 31 December 2022.
To find out whether the accommodation is in zone A or A bis, you can use the following online service:
Know the area of your town: A, Abis, B1, B2 or C
The allowance is applicable to determine the base of income tax and social levies.
This allowance shall apply to the capital gain depending on the duration of the holding of the property.
It may be increased to 85% if social housing at least 50% of the total surface of the buildings.
The allowance may not apply if the seller and buyer have family ties (for example, if they are couple).
FYI
the construction work must be completed within 4 years from the date of acquisition.
Tax rate
Capital gain is taxed on income tax at the rate of 19%.
Example :
For a taxable capital gain of €20,000, income tax is €3,800 (€20,000 x 19%).
An additional tax applies in the case of taxable capital gains exceeding €50 000. The rate varies from 2% to 6% depending on the amount of the capital gain realised.
Form 2048-IMM-SD contains a table to establish the amount (in practice, this is calculated by the notary).
The tax does not apply to exempt sales or sales of building land.
FYI
you can see examples of real estate capital gains calculations on the tax administration information leaflet and site imitts.gov.fr .
Formalities by the notary
The notary responsible for the sale carries out the following operations:
- Representations to the Tax Authority
- Calculation of taxable capital gain and amount of tax payable
- Reporting
- Payment of the tax on the real estate capital gain to the services of the land advertising of the place of the property
Specifying the capital gain on your tax return
You must include the following information on your tax return:
- Amount of surplus value declared by the notary
- If necessary, exempt surplus value in case of 1re assignment of a dwelling other than your own main residence
The 2022 2021 income tax return commenced on April 7, 2022.
The deadline varies depending on whether you file your return on paper or online.
Online Declaration
Department | Reporting deadline |
---|---|
1 to 19 | Tuesday 24 May 2022 at 23:59 |
20 to 54 (including 2A and 2B) | Tuesday 31 May 2022 at 23:59 |
55 to 974/976 | Wednesday 8 June 2022 at 11.59pm |
Non-residents | Tuesday 24 May 2022 at 23:59 |
Paper Declaration
The tax return must be filed before Thursday 19 May 2022 at 23:59, including for foreigner residents.
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Service in charge of taxes (treasury, tax department...)- National Habitat Agency (Anah)
- General tax code: Articles 150a to 150VHCapital gains from the sale for consideration of movable and immovable property and rights (Articles 150 U to 150 VH)
- General tax code: Articles 170 to 175aIndication of the amount of capital gains on the income tax return
- General tax code: Article 200bCapital gains tax rate
- General tax code: Article 1609h GHigh capital gains tax
- Article 28 of Law No. 2017-1775 of 28 December 2017 of Amending Finances for 2017Exceptional reduction for tense areas
- General Tax Code, Annexe 3: Articles 41xD to 41xIMandatory particulars on the deed of sale in case of application for exemption for 1st assignment of a dwelling (Article 41u-0h), determination of the transfer and acquisition price (Articles 41u H and 41vI)
- Social Security Code: Article L136-7Social contribution on investment products (including real estate capital gains: 2° of I)
- Bofip-Taxes n°BOI-RFPI-PVI relating to capital gains
- Bofip-Taxes n°BOI-RFPI-PVI-20-10 relating to the determination of gross real estate capital gains
- Bofip-Taxes n°BOI-RFPI-PVI-20-20 relating to the determination of taxable real estate capital gains
- Bofip-Taxes n°BOI-RFPI-TPVIE relating to the tax on high real estate capital gains
- Order of 29 December 2017 fixing the list of communes for the application of the reduction provided for in Article 28 of the Amending Finance Act for 2017
- Bofip-Taxes No. BOI-RFPI-PVI6-10-40 on capital gains exemptions
- Taxes: access your Home
Online service
- Calculator for 2022: 2021 income tax
Simulator
- 2022 Online 2021 Income Statement
Online service
- 2021 Income Supplement 2020
Form
- 2020 Statement of Appreciation - Assignments of Real Estate or Real Estate
Form
- 2021 Statement of Capital Gains on Disposals of Building Land
Form
- 2021 Statement of Appreciation - Assignments of Moveable Property or Predominantly Real Estate businesses
Form
- 2021 declaration of capital gains for exchange of real estate-predominant business securities
Form
- Estimate the amount of real estate capital gain
Simulator
FAQ
- Income tax: return and incomeService-Public.fr
- Income tax: deductions, reductions and tax creditsService-Public.fr
- Social levies (CSG, CRDS...) on income from wealthService-Public.fr
- Selling Real EstateMinistry of Finance
- Tax SiteMinistry of Finance
- Income tax: information leafletsMinistry of Finance
- 2022 Practice Brochure - 2021 Income Tax ReturnMinistry of Finance
- You live in the foreigner and sell a property located in FranceMinistry of Finance