Is the sale of real estate subject to real estate VAT?
Verified 24 August 2023 - Legal and Administrative Information Directorate (Prime Minister)
The sale ofa new property ora building site by a professional seller is subject to real estate VAT. It is a tax collected by the state. What is the VAT: titleContent applicable real estate? We'll show you what you need to know.
You owe the VAT: titleContent real estate if you are a professional salesman subject to VAT: titleContent such as a property dealer, a developer or a developer.
The VAT: titleContent real estate is due on the occasion of the sale of a new housing or a building land.
Sale of a new dwelling
A dwelling is considered new if it is built for 5 years or less.
Otherwise, it must have been work completed less than 5 years ago. This work must be an elevation, or else it must restore the dwelling to a new state by replacing:
- Or the majority of foundations
- The majority of the non-foundation elements determining the strength and rigidity of the structure
- Or the majority of the consistency of the facades without reworking
- Or 2/3 of each of the elements of the second work: floors not determining the strength or rigidity of the structure, exterior doors, interior partitions, sanitary and plumbing installations, electrical installations and, for the metropolis only, heating system
Sale of building land
A plot of land is considered as building land if future constructions are permitted there by the local city planning document (local city planning plan, municipal map...).
The following transactions shall be exempt from VAT: titleContent real estate:
- Sales of old dwellings: a dwelling is considered old if it has been built for more than 5 years or if it has not been raised or has been restored to new condition
- Sales by individuals, regardless of the nature of the transaction (sale of building land, new or old housing)
- Sales of real estate for a symbolic price, i.e. a price that is derisory in relation to the real value of the property (this is for example the case if you sell for €1 a property that is actually worth it €200,000)
- Mfree transfers (donation, inheritance), pure and simple shares, payments division of inheritance or marital community
You have an obligation to report every month all sales made in the previous month.
When the VAT: titleContent the amount of immovable property due is less than €4,000, declarations shall be made by calendar quarter.
You can do this via the Internet or by using a form to deposit with your service taxes for the subscription of the returns.
For more information, you can contact the tax information service.
Who shall I contact
Tax Information Service
By telephone:
0809 401 401
Monday to Friday from 8:30 am to 7 pm, excluding public holidays.
Free service + call price
The rate of VAT: titleContent real estate when a new dwelling or building land is sold varies according to the nature and situation of the dwelling or the building land.
Please note
the rate applicable is different for Corsica.
New housing (built for less than 5 years)
Sectors or premises concerned | Tat the VAT: titleContent |
New housing - General case | 20% |
New housing in Corsica | 10% |
Social rental housing financed by an assisted integration rental loan (PLAi), the recipient of which is a beneficiary of grants or loans qualifying for personalized housing assistance (PLA) | 5.50% |
Social rental housing financed by a rental loan for social use and falling under the urban renewal policy, the recipient of which is a beneficiary of aid or loans qualifying for the PLA | 5.50% |
Other social rental housing of which the recipient is a beneficiary of aid or loans qualifying for the PLA | 10% |
Local subject to acquisition-improvement financed by an assisted integration rental loan (PLAi) or a social rental loan (PLUS) or a social rental loan (PLS) | 5.50% |
Social housing where the work carried out has made the building new | 5.50% |
Housing treated as social rental housing intended to be occupied as a principal residence by means-tested households and situated in a district subject to an urban renewal agreement or an urban renewal agreement or situated within 300 m of these districts | 10% |
Housing that is the subject of a homebuyers' agreement or is intended to be occupied by a homeowner and is located in or within 300m of a district that is the subject of an urban renewal agreement or in a priority area of city policy | 5.50% |
Building land
Sectors or land concerned | Rate of VAT: titleContent |
Building land - General case | 20% |
Building land in Corsica | 10% |
Building land intended for the construction of premises subject to a taxable transaction at the reduced rate where the buyer certifies this destination in the bill of sale | 10% |
Sales subject to real estate VAT
Article 257: Real estate VAT rates depending on the transaction
Transactions exempt from real estate VAT
Real estate VAT at the standard rate
Articles 278e and 278e-0A: Property VAT at reduced rate
Real estate VAT applicable in Corsica
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