As always in France, you have two sets of tax to pay: capital gains tax and social charges. The standard capital gains tax rate on the sale of real estate is 19%. Progressive surcharges are added for gains over €50,000, starting at 2% and rising to 6% for gains over €260,000.
How much is capital gains tax on property in France?
The standard rate of French capital gains tax for real estate is 19%, but there are surcharges for higher gains and you also need to pay social charges. However, there are various exemptions and reliefs which could benefit you.
Do you pay tax on capital gains on sale of property in France?
For sales allowing for capital gains exemption both in terms of income tax and social levies owing to the duration of ownership of the property (22 years for income tax and 30 years for social levies) Or any other person who is resident of France for tax purposes, except notaries and lawyers.
What happens if I Sell my House in France?
Where property is sold by a non-EU, Iceland or Norway resident, they must use a tax representative accredited by the French Tax Authority to make a capital gains tax declaration. Don’t forget, if your main home is in France then your UK home may be regarded as a second home and therefore taxable.
When do you have to pay CGT to sell in France?
Any UK citizens looking to sell their second home in France will see their capital gains tax (CGT) levy significantly increase once the Brexit transition period comes to an end on 31 December 2020. People who sell property in France are usually subject to both CGT and social charges.
Do you need a notary to sell a property in France?
You need to use a notary when selling real estate. They will calculate the tax due, withhold it at time of sale, then pay the tax for you. Where property is sold by a non-EU, Iceland or Norway resident, they must use a tax representative accredited by the French Tax Authority to make a capital gains tax declaration.
