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Exemption for non-residents

special exemptions can apply to non-residents selling their property in France

     a. Allowance of  €150,000 (art. 150 U – II 2° Tax Code).

Art. 150 U–II 2° of French Tax Code
Which requirements have you to fulfill ?

  • To be an individual and owning the property directly (you cannot benefit from the exemption if you are a partner in a French company « SCI »),
  • To be a citizen (nationality) of an European member State, as well as Iceland and Norway,(if not, please contact us ; an agreement between France and your country may exist and grant you the same treatment as an european citizen),
  • To have been fiscally domiciled in France for at least two consecutive years,
  • The allowance applies to a maximum of € 150,000 of taxable net gain, to the sales made : 
          a) Not later than December 31 of the tenth year following the transfer by the transferor of its tax residence outside France,     
          b) Without delay when the seller has the free disposal of the property at least since January 1st of the year preceding the year of the sale
  • Not to have already sold a property since January 1st 2006.


      a. Exemption for the sale of the principal residence (art. 244 Bis A I 1° 4è al. Tax Code).

No capital gains tax to the transfer of the principal residence in France.
 
Conditions :
• the transferred property is the principal residence of the seller on the date of the transfer of his tax residence outside France,
• the tax domicile has to be transferred to an EU State or a State that has concluded an administrative assistance agreement with France to combat tax evasion and avoidance and a mutual assistance agreement in recovery,
• the transfer has to be completed no later than December 31 of the year following the year of transfer of fiscal domicile,
• the property has not been made available to third parties, either free of charge or for a fee, between this transfer and the transfer.
 
Limits :
• the exemption referred to above is not applicable if the seller has benefited from the exemption provided for in art. 150 U, II-2 ° of the CGI,
• conversely, the exemption provided for in article 150 U, II-2 ° of the CGI is not applicable if the seller has benefited from the exemption known as "principal residence".
 

Exemption for sales lower than €15,000

If you are a particular and you are selling real estate for a price lower than or equal to €15,000, you will be exempted of capital gain tax.

That threshold applies for each sale you make, not annually.

If you are not the sole owner of the property (married or not), you have to consider the rights of each partner, not the whole price.

If you are selling only the usufruct or the bare property, you have to consider the rights of each partner (for the whole property of their rights not the only usufruct or not the only bare property), not the whole price.

If you are selling several properties to a same person in the same act, you have to consider the whole price.