Capital Gains Tax on French Property for Non-Residents
- 17 mars
- 3 min de lecture
Dernière mise à jour : il y a 7 jours
A complete guide to the 22-year exemption, social charges, fiscal representative rules, and worked examples for UK and US sellers.
Introduction
Selling property in France as a non-resident can be complex, particularly when it comes to understanding capital gains tax (CGT). Many foreign owners are surprised to learn that French tax rules differ significantly from those in their home country.
This guide explains:
The 22-year tax exemption rule
The 30-year exemption for social charges
The role of a fiscal representative
Practical worked examples for UK and US sellers
If you are planning to sell your French property, understanding these rules is essential to avoid unexpected costs and delays.
What Is Capital Gains Tax in France?
Capital gains tax applies to the profit realised on the sale of real estate (difference between purchase price and sale price, adjusted for certain costs).
For non-residents, the tax regime is broadly aligned with that of French residents.
Current Tax Rates (2024–2025)
19%: standard capital gains tax rate
17.2%: social charges
👉 Total potential taxation: 36.2%
Source:
French Tax Code (CGI, Article 150 U)
The 22-Year Exemption Rule (Income Tax)
You benefit from a full exemption from income tax (19%) after 22 years of ownership.
How the Reduction Works
No reduction for the first 5 years
Progressive reduction from year 6
Full exemption at year 22
This applies equally to non-residents.
The 30-Year Exemption Rule (Social Charges)
Social charges follow a different timeline.
👉 Full exemption from social charges (17.2%) is only achieved after 30 years
Key Distinction
22 years → income tax exempt
30 years → full exemption
Between years 22 and 30, only social charges remain payable.
Source:
Additional Surtax on Large Capital Gains
If your capital gain exceeds €50,000, an additional surtax applies.
Surtax Scale
From 2% to 6%
Progressive depending on gain amount
This is frequently overlooked and can increase the total tax burden.
Do Non-Residents Have to Pay Social Charges?
Yes, but with distinctions depending on residency status.
EU / EEA Residents
Reduced rate: 7.5%
Non-EU Residents (UK, US, etc.)
Standard rate: 17.2%
Source:
Is a Fiscal Representative Mandatory?
A fiscal representative (représentant fiscal accrédité) ensures compliance with French tax obligations.
When Is It Required?
Non-EU residents
Sale price above €150,000
Exceptions
EU / EEA residents are generally exempt
Source:
How Is the Capital Gain Calculated?
The taxable gain is adjusted through various deductions.
Deductible Costs
Notary fees (actual or flat 7.5%)
Renovation works (or flat 15% after 5 years)
Agency fees
Certain selling costs
These deductions can significantly reduce the taxable base.
Worked Example – UK Seller
Scenario
Purchase price: €200,000
Sale price: €400,000
Ownership: 15 years
Simplified Calculation
Raw gain: €200,000
Partial exemption applies
Tax due includes:
Reduced income tax
Social charges
👉 Estimated tax: €40,000–€60,000
Worked Example – US Seller
Scenario
Purchase price: €300,000
Sale price: €550,000
Ownership: 25 years
Outcome
No income tax (22-year rule reached)
Reduced social charges still apply
👉 Estimated tax: €10,000–€25,000
Double Taxation Considerations
Non-residents may also be taxed in their country of residence.
Examples
UK residents → UK CGT may apply
US citizens → worldwide taxation applies
Tax treaties usually prevent double taxation via:
Tax credits
Relief mechanisms
Source:
Why Working with a Notaire Is Essential
The notaire:
Calculates and withholds tax
Ensures legal compliance
Coordinates with fiscal representatives
For non-residents, this role is critical.
Get Help from an English-Speaking Notaire
If you are unsure how these rules apply to your situation, professional guidance is essential.
With French Notaires, you can:
Find a qualified English-speaking notaire
Locate one near your property in France
Receive clear, tailored advice
👉 This ensures a smooth, compliant transaction.
Key Takeaways
Maximum taxation: 36.2%
Full exemptions:
22 years (income tax)
30 years (social charges)
Fiscal representative may be required
Multiple deductions reduce taxable gain
Double taxation depends on your country