New rates for Capital Gains Tax in France

tax

Capital gains tax (or plus value) is due when you sell a property in France that is not your main residence. It is calculated on the difference between the sum you paid for the property and what you sold it for, i.e. the profit you made. The cost of certain restoration work will be taken into consideration.

The rate decreases for each year you own the property until after 30 years there is no capital gains tax due. So, the longer you own the property, the less capital gains there is to pay. There are discussions currently underway to reduce this again down to 22 years. As soon as a decision has been reached, we will inform you in our Newsletter.

house for sale

With effect from 17th August 2012 the rate of capital gains tax has been increased by 15.5% (social security payments).

For those whose main residence is in a country which

  • is a Member State of the European Union, the capital gains tax rate is 34.50% (19% + 15.50%).
  • is not within the European Union, the rate is 48.83% (33.33% + 15.50%)
  • and for those resident in non-cooperative States (Brunei, Guatemala, Marshall Islands, Montserrat, Nauru, Niue, the Philippines and Botswana), the rate is 65.50% (50% + 15.50%).

As always, seek professional advice if you have any queries.