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. Sale of Building Land
6. 11.6. Your Former Home
7. 11.7. Fiscal Representative for Non-Residents

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11.4. Capital Gains on Shares and Personal Property

Capital gains tax on shares and personal property is called plus values mobilières.

i. Shares

French capital gains tax is payable on the gain realised from the sale of shares by anyone resident in France at the rate of 32.5% (19% CGT + 13.5% social charges). The rate applies from 1st Oct 2011, prior to which it is 31.3%.

You can carry forward losses for 10 years to offset gains.

The rules are different if you are a professional punter as all gains are taxable at the rate of 33.3%, or on a progressive basis under income tax rules, depending on how you elect to be taxed.

For shares held since Jan 06, then you are entitled to a progressive reduction in capital gains tax if you hold the shares for over 5 years. The reduction is 1/3 for each subsequent year, giving full exemption after eight years.

Accordingly, under the terms of this provision, no full exemption will be available until 2014 at the earliest.

If you are not resident in France then the rules will depend on the terms of any double taxation treaty with your home country.

Normally you are exempt from capital gains tax in France on the sale of shares if you are non-resident.

ii. Personal Property

In relation to capital gains on personal property other than real estate, such gains are exempt if the sale proceeds are under €5000.

There is also 10% relief for each year owned over 2 years, granting complete relief if held for 12 years.

There is no capital gains tax payable on the sale of household furniture or your car.

Special rules apply in relation to the sale of jewellery or precious objects, where a standard tax charge is applied, whether or not you realised a capital gain. Jewellery and works of art or antiques are charged a flat rate of 5% without allowances. You can also elect to choose the standard form of capital gains tax if you so wish, against which you can offset eligible costs.

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