11. French Capital Gains Tax

1. 11.1. Capital Gains Tax Rates
2. 11.2. Allowances on Sale of Property
3. 11.3. Allowable Costs on Sale of Property
4. 11.4. Shares and Personal Property
5. 11.5. Building Land
6. 11.6. Your Former Home
7. 11.7. Fiscal Representative for Non-Residents

11.1. French Capital Gains Tax Rates

Capital gains tax in France is called impôt sur les plus values and is a tax payable on the sale of land or buildings, on shares, and certain other personal property.

Capital gains tax on land and buildings is called impôt sur les plus values immobiliere.

The applicable tax rate for gains on real estate will depend upon your country of residence for taxation purposes.

In all cases of the sale of property in France the tax is applied at the time of the sale in the offices of the notaire, and will be deducted from the sale proceeds before the cheque is handed over.

Where you sell a property outside of France, but you are tax resident in France, then you will need to declare your capital gain with your tax return.

The various rates are as follows:

i. Resident of France

If you are a resident of France then the applicable tax rate is 32.5%.

This sum comprises capital gains tax at the rate of 19%, plus 13.5% social charges.

ii. EU Resident

If you are not resident in France, but you are resident in the EU, then the applicable tax rate is 19%, as no social charges are payable.

You should note, however, that you may also be liable for capital gains tax in your home country. The extent of the liability will depend on the terms of any tax treaty that exists.

In relation to those from the UK, then a liability does arise in the UK, but with any French tax paid set off against tax that may be due in the UK.

iii. Non-Resident of France

Those who are neither resident in France nor the EU pay capital gains tax at the rate of 33.3%.

However, if you are based in a tax haven that does not have a tax agreement with France, then the rate that applies is 50%.

Again, as with EU residents, you may also be liable in your home country.