Disclaimer: This article is for general informational purposes only and does not constitute tax, legal, or financial advice. French tax rules change frequently and individual circumstances vary. Always consult a qualified advisor before acting on any information presented here.
Introduction
You’ve sold — or you’re about to sell — a property in France. You’re not a French tax resident. And you want to know: how much of the gain will the French tax authorities take?
The short answer: potentially a lot. France applies a dual-layer system — income tax plus social charges — that can push the headline rate to 37.6% of your gain. If you’re resident in the EEA, Switzerland, or the UK, that drops to 26.5% thanks to a social charges exemption that many sellers don’t even know about.
The better answer: it depends on how long you’ve held the property, where you live, how you’ve structured ownership, and whether you’ve claimed every deduction available to you. Get those right and your effective rate can fall well below the headline figures — in some cases to zero.
This guide breaks down exactly how French capital gains tax (plus-value immobilière) works for non-residents in 2026, including the new accelerated taper relief schedule enacted in the Loi de Finances pour 2026 and the social charges increase introduced by LFSS 2026.
Scope: This article covers direct property sales and sales through SCIs under the income tax regime (régime IR). SCIs that have opted for corporate tax (régime IS) follow different rules — see the SCI section below. If you’re not sure what regime your SCI is under, check out our article What Is an SCI?
How French Capital Gains Tax Works
When you sell a property in France, the capital gain (plus-value) is the difference between the selling price and the acquisition price, each subject to certain adjustments (more on those below).
France taxes this gain at source. That means the notaire withholds the tax from your sale proceeds at closing and pays it directly to the French tax authorities (Direction Générale des Finances Publiques). You don’t file a separate return for this — the notaire handles the declaration (déclaration de plus-value, form 2048-IMM) and the payment.
One thing that catches non-EU sellers off guard: if you are resident outside the EU/EEA/Switzerland and the sale price exceeds €150,000, you are generally required to appoint a fiscal representative (représentant fiscal accrédité). This is a licensed professional who guarantees the accuracy of the tax calculation to the French authorities and is personally liable for any underpayment. Their fees typically range from €1,500 to €3,000+, depending on the complexity of the transaction (Article 244 bis A of the CGI).
EU/EEA/Swiss residents are exempt from the fiscal representative requirement.
The Two Components: Income Tax and Social Charges
French capital gains tax on property has two separate components, and understanding the distinction matters — because they follow different taper schedules and different rules depending on where you live.
1. Income Tax (Impôt sur le revenu): 19%
This flat rate applies to all sellers, regardless of residency. It’s the base capital gains tax rate on property disposals in France (Article 200 B of the CGI).
2. Social Charges (Prélèvements sociaux): 18.6%
Since 1 January 2026, the standard social charges rate for non-residents is 18.6%, up from 17.2% previously. The increase comes from the LFSS 2026 (Loi de financement de la sécurité sociale pour 2026), which raised the CSG component from 9.2% to 10.6% for income taxed under Article 244 bis A.
The breakdown: CSG at 10.6%, CRDS at 0.5%, solidarity levy at 7.5%.
But here’s the critical exception: if you are affiliated to the social security system of an EEA state, Switzerland, or the United Kingdom, you don’t pay the full 18.6%. You pay only the solidarity levy of 7.5%. This hasn’t changed. More on this in the EEA/Swiss/UK section below.
Combined headline rates:
| Your residence | Income tax | Social charges | Total (before taper) |
|---|---|---|---|
| EEA / Switzerland / UK | 19% | 7.5% | 26.5% |
| All other countries | 19% | 18.6% | 37.6% |
These are headline rates. The effective rate drops — often dramatically — with the length of time you’ve held the property.
Calculating Your Taxable Gain
The taxable gain is not simply “sale price minus purchase price.” French tax law allows several adjustments that can meaningfully reduce your liability.
Adjusted Sale Price
Start with the actual sale price stated in the notarial deed (acte authentique), then deduct:
Selling costs — real estate agent commissions, mandatory diagnostic reports (diagnostics immobiliers), and other costs directly tied to the sale. These must be supported by invoices. Unlike acquisition costs (below), there is no flat-rate option for selling costs — you can only deduct what you can document.
Adjusted Acquisition Price
Take the original purchase price (or declared value if inherited or received as a gift), then add:
Acquisition costs — registration fees (droits de mutation), notaire fees, and agency fees paid at the time of purchase. You have two options: use the actual documented costs, or claim a flat-rate deduction of 7.5% of the purchase price. You pick whichever gives you the higher deduction.
Improvement works (travaux) — construction, renovation, enlargement, or improvement works carried out by a professional contractor. The works must be evidenced by invoices and must not have already been deducted from rental income. Alternatively, if you’ve owned the property for more than 5 years, you can claim a flat-rate deduction of 15% of the purchase price — even if you haven’t spent a centime on improvements (Article 150 VB II 4° of the CGI).
This is worth repeating. The 15% flat-rate for works after 5 years of ownership is one of the most valuable deductions in this regime. You don’t need invoices. You don’t need to prove any works took place. You simply add 15% of your purchase price to the acquisition cost. Always compare it with your actual documented costs — use whichever is higher.
The Formula
Taxable Gain = Adjusted Sale Price − Adjusted Acquisition Price
You then apply taper relief to this gain — separately for income tax and social charges — to arrive at the net taxable amount for each component.
Taper Relief: The Holding Period Advantage
This is where the numbers change dramatically. France rewards long-term property holders with a generous taper relief system (abattement pour durée de détention) that can reduce your liability to zero — but only if you hold long enough.
The taper schedules are different for income tax and social charges. And the income tax schedule changed significantly with the Loi de Finances pour 2026, which accelerated the taper from 22 years to 17 years for full exemption.
Taper Relief for Income Tax (19%) — New 2026 Schedule
| Years of Ownership | Annual Allowance | Cumulative Allowance |
|---|---|---|
| Years 1–5 | 0% | 0% |
| Years 6–17 | 8% per year | 8% → 96% |
| Year 17+ | 4% | 100% |
| Full exemption after 17 years |
This is the schedule enacted by the Loi de Finances pour 2026 (published in the Journal Officiel on 20 February 2026). The previous schedule required 22 years for full income tax exemption; the new one gets you there at 17.
Taper Relief for Social Charges (18.6% or 7.5%)
| Years of Ownership | Annual Allowance | Cumulative Allowance |
|---|---|---|
| Years 1–5 | 0% | 0% |
| Years 6–21 | 1.65% per year | 1.65% → 26.4% |
| Year 22 | 1.60% | 28% |
| Years 23–30 | 9% per year | 28% → 100% |
| Full exemption after 30 years |
The social charges taper was not changed by the 2026 finance law. It still takes 30 years to reach full exemption.
What This Means in Practice
After 17 years: you pay zero income tax, but still owe social charges on 80.2% of the gain (only 19.8% has been tapered away under the SC schedule at that point).
After 22 years: still zero income tax, and social charges are now reduced — you owe them on 72% of the gain.
After 30 years: you pay nothing. Full exemption from both components.
The new sweet spot is the 17-year mark. Under the old rules, you needed to hold for 22 years to eliminate the income tax component. The 2026 reform shaves five years off that, which matters enormously in practice — particularly for holiday homes and investment properties where the holding period is often 15–20 years.
The Surtax on Large Gains
If your net taxable gain — after taper relief for income tax purposes — exceeds €50,000, an additional surtax kicks in (Article 1609 nonies G of the CGI). It’s calculated on the income-tax-adjusted gain only.
| Net Taxable Gain (after IT taper) | Surtax Rate |
|---|---|
| €50,001 – €60,000 | 2% |
| €60,001 – €100,000 | 2% |
| €100,001 – €110,000 | 3% |
| €110,001 – €150,000 | 3% |
| €150,001 – €160,000 | 4% |
| €160,001 – €200,000 | 4% |
| €200,001 – €210,000 | 5% |
| €210,001 – €250,000 | 5% |
| €250,001 – €260,000 | 6% |
| Above €260,000 | 6% |
A smoothing mechanism (lissage) applies at the boundaries of each bracket to avoid cliff effects. At the top end, the surtax adds 6% on top of the 19% income tax, pushing the income tax component alone to 25%.
Exemptions Available to Non-Residents
Non-residents don’t get access to the most powerful exemption in French property tax — the principal residence exemption for current residents. But there are several others worth knowing about.
1. The €150,000 Non-Resident Exemption
If you are a national of an EU or EEA member state and you were fiscally resident in France for at least two consecutive years at any point before the sale, you can claim an exemption of up to €150,000 of net taxable gain (after taper relief). This is a lifetime allowance per taxpayer, not per property — you can use it across multiple sales until the ceiling is exhausted (Article 150 U II 2° of the CGI).
There’s a timing condition. The sale must occur within 10 years of your departure from France. However, there’s an alternative: if you have had free disposal (libre disposition) of the property since at least 1 January of the year preceding the sale — meaning it hasn’t been rented out or occupied by a third party — there is no time limit. You can sell 20 years after leaving France and still claim this exemption, as long as the property has been sitting empty (or available to you) since the prior 1 January.
The exemption applies to both income tax and social charges. It covers one property per taxpayer and cannot be combined with the former principal residence exemption (below) on the same sale — you must choose one or the other.
For British nationals: post-Brexit, UK nationals are generally still eligible under the terms of the EU-UK Withdrawal Agreement, provided the other conditions are met. The position is nuanced, though, so confirm with your tax advisor.
2. Former Principal Residence Exemption
If the property was your principal residence and you sell it by 31 December of the year following the year you left France, the gain is fully exempt — regardless of how long you owned the property (Article 150 U II 2° of the CGI).
Conditions: the property must have been your actual principal residence up until your departure, the sale must complete before the deadline, and the property must not have been rented or made available to third parties since you left. There’s one more requirement that’s easy to miss: your new country of residence must be an EU member state, or a state that has signed a convention with France providing for administrative assistance against tax fraud and evasion and mutual assistance on tax recovery. Most developed countries qualify, but it’s worth checking.
This exemption cannot be combined with the €150,000 non-resident exemption on the same sale. If both apply to your situation, you’ll need to work out which one gives you the bigger saving.
3. Full Taper Exemption (17/30 Years)
As covered above — hold for 17+ years and the income tax component disappears. Hold for 30+ years and you owe nothing on either component.
4. Sale Price Under €15,000
If the total sale price is under €15,000, the gain is fully exempt. For co-owned properties, this threshold applies per co-owner’s share. For SCI sales, it applies to the total sale price — not each partner’s share — which makes this exemption rarely useful in practice for SCI transactions.
Special Rules for EEA, Swiss, and UK Residents
This is one of the most important — and most frequently overlooked — distinctions for non-resident sellers in France.
If you are affiliated to the social security system of an EEA country, Switzerland, or the United Kingdom at the time of sale, you are exempt from the CSG and CRDS components of the social charges. You pay only the solidarity levy (prélèvement de solidarité) of 7.5% (Article L.136-7 of the Social Security Code, as modified by EU Regulation 883/2004).
The legal basis is straightforward: you shouldn’t pay into France’s social security system if you’re already contributing to another EEA/Swiss system. The UK’s continued inclusion is part of the post-Brexit social security coordination arrangements.
What this saves you
| Residence at time of sale | Social charges rate | Saving vs. standard rate |
|---|---|---|
| EEA / Switzerland / UK | 7.5% | 11.1 percentage points |
| All other countries | 18.6% | — |
On a €100,000 taxable gain (before social charges taper), that’s a difference of €11,100. It’s real money.
Note that this is based on where you are tax-resident at the time of the sale, not your nationality. A French national living in the United States pays 18.6%. An American national living in Germany pays 7.5%.
Practical note: to benefit from the reduced rate, provide your notaire with a certificate of affiliation (attestation d’affiliation) to your home country’s social security system, or equivalent proof of tax residency in an EEA/Swiss/UK jurisdiction. Without this documentation, the notaire will apply the full 18.6% rate by default.
Selling Through an SCI: What Changes?
If you hold French property through an SCI, the capital gains tax treatment depends entirely on the SCI’s tax regime. If you’re new to SCIs, start with our guide What Is an SCI?
SCI Under Income Tax (Régime IR) — The Default
Most SCIs are “transparent” for tax purposes — the gain is calculated and taxed at the level of each individual partner (associé), in proportion to their share in the SCI.
If the SCI sells the property directly, the rules are identical to a direct sale by an individual: 19% income tax + social charges, the same taper relief schedules, the same exemptions (€150,000 for EU/EEA nationals, etc.). The holding period is counted from the date the SCI acquired the property, not when you personally joined the SCI.
If you sell your shares in the SCI, the property capital gains regime also applies — but only if the SCI qualifies as an SPI (société à prépondérance immobilière). An SCI is an SPI when more than 50% of its gross assets consist of non-professional real estate (immeubles ou droits portant sur des immeubles non affectés à une activité professionnelle). Most SCIs holding residential property will meet this test easily. If your SCI qualifies, selling your shares is taxed under the same 19% + social charges regime as a direct property sale (Article 244 bis A of the CGI).
One important nuance when selling SCI-IR shares: the acquisition price of your shares must be corrected for any retained profits that were already taxed in your hands as revenus fonciers. Because the SCI is transparent, you’ve already been taxed on the rental income each year — even if those profits were never actually distributed to you. If the correction isn’t made, the same income gets taxed once as rental income and again as part of your capital gain. Make sure your notaire or advisor applies this correction (prix d’acquisition corrigé des résultats non distribués) to avoid double taxation.
Former principal residence exemption for SCI share sales: if the property held by the SCI was your principal residence before you left France, and you sell your shares within the same deadline (31 December of the year following your departure), the former principal residence exemption can apply to the share sale — but only in proportion to the housing value relative to the SCI’s total assets. If the SCI holds one apartment worth €400,000 and has €50,000 in cash, the exemption covers 400/450 of the gain. The same conditions apply as for a direct sale: property not rented since departure, and new country of residence meeting the convention requirements mentioned above.
SCI Under Corporate Tax (Régime IS)
If the SCI has opted for corporate tax (or has been deemed liable for it), the rules change fundamentally:
The gain is taxed at corporate income tax (25% in 2026) at the SCI level. There is no taper relief — the gain is taxed in full regardless of how long the SCI has held the property. Any depreciation that was previously deducted from rental income is added back to the gain, which can substantially inflate the taxable amount.
When the after-tax profits are then distributed to you as a non-resident partner, a further layer of tax applies. For non-residents, this is not the PFU (which is a domestic regime for French tax residents). Instead, distributions from an SCI-IS to non-resident partners are subject to withholding tax (retenue à la source) at rates set by the applicable double tax treaty between France and your country of residence. Under most French treaties, the dividend withholding rate is 15%, though this varies — check your specific treaty.
This double layer — 25% at the SCI level, then 15% (typical) on distribution — is one of the key reasons many advisors recommend keeping SCIs under the IR regime for long-term property holdings, despite the short-term advantages of IS for deducting depreciation and other costs. For a deeper dive into the IR vs. IS decision, see our SCI Guides series.
Practical Strategies to Reduce Your Tax Bill
1. Time Your Sale Around the New 17-Year Threshold
The most powerful lever you have is time. Under the 2026 taper schedule, holding for 17 years eliminates the 19% income tax component entirely. If you’re at year 14 or 15, the difference between selling now and waiting a couple of years can be tens of thousands of euros.
The social charges side takes longer — 30 years for full exemption — but the income tax saving alone at year 17 is usually the bigger prize.
2. Maximise Your Deductible Costs
Claim everything you’re entitled to. Compare the flat 7.5% acquisition cost deduction with your actual notaire and registration fees — use whichever is higher. If you’ve owned for 5+ years, compare the 15% flat-rate works deduction against your actual documented improvement costs. Keep all invoices for agent fees, mandatory diagnostics, and sale-related expenses.
3. Use the €150,000 Exemption if You Qualify
If you’re an EU/EEA national who was previously tax-resident in France for at least two consecutive years, this exemption is per taxpayer. A couple selling jointly could potentially shelter up to €300,000 of gain. Remember the timing: within 10 years of departure, or no time limit if the property has been freely available to you since 1 January of the prior year. And remember: you can’t stack this with the former principal residence exemption on the same sale — pick the one that saves you more.
4. Sell Before the Deadline if It Was Your Home
If the property was your principal residence when you left France, sell by 31 December of the following year to claim the full exemption. Miss this deadline by a day and you lose one of the most generous exemptions in the French tax code.
5. Consider Where You Live at the Time of Sale
If you have flexibility in your tax residency, being resident in an EEA country, Switzerland, or the UK at the time of sale saves you 11.1 percentage points on social charges compared to a non-EEA country. On a large gain, that’s a substantial difference.
6. Keep Your SCI Under IR for Long-Term Holdings
If you hold through an SCI and plan to sell after many years, the IR regime’s taper relief can take you to zero tax after 30 years. Under IS there is no taper, depreciation gets added back, and you face a second layer of withholding tax on distribution. The short-term deductions of IS rarely outweigh the long-term benefits of IR for properties you intend to hold for a decade or more.
Worked Example: A Step-by-Step Calculation
Let’s run through a realistic scenario using the 2026 rates and taper schedule.
The situation:
A British couple, tax-resident in the UK. They bought an apartment in Nice in 2012 for €300,000 and are selling in 2026 for €450,000. They’ve owned the property for 14 years. No major works were carried out. The estate agent commission on the sale is €18,000.
Step 1: Calculate the Gross Gain
Adjusted sale price:
€450,000 − €18,000 (agent fees) = €432,000
Adjusted acquisition price:
€300,000 + €22,500 (7.5% flat-rate acquisition costs) + €45,000 (15% flat-rate works, owned 5+ years) = €367,500
Gross gain: €432,000 − €367,500 = €64,500
Step 2: Apply Taper Relief
Ownership: 14 years, so 9 years of taper relief apply (years 6–14).
Income tax taper (2026 schedule): 9 × 8% = 72% allowance
Taxable gain for IT: €64,500 × (1 − 0.72) = €18,060
Social charges taper: 9 × 1.65% = 14.85% allowance
Taxable gain for SC: €64,500 × (1 − 0.1485) = €54,922
Step 3: Calculate the Tax
Income tax: €18,060 × 19% = €3,431
Social charges (UK residents pay 7.5%):
€54,922 × 7.5% = €4,119
Surtax: Net taxable gain for IT is €18,060 — well below the €50,000 threshold. No surtax.
Step 4: Total Tax
Total: €3,431 + €4,119 = €7,550
Effective tax rate on the gross gain: 11.7%
Under the old taper schedule (6% per year), the income tax taper at 14 years would have been 54%, giving a taxable gain of €29,670 and income tax of €5,637. The 2026 reform saves this couple €2,206 on the income tax component alone.
Without the EEA/UK social charges exemption, social charges would have been €54,922 × 18.6% = €10,216 — pushing the total to €13,647, or an effective rate of 21.2%. The combination of UK residency and the new taper schedule saves this couple over €6,000 compared to what a non-EEA seller would have paid under the old rules.
Frequently Asked Questions
Q: Do I need to pay capital gains tax in France if I’m already taxed in my home country?
A: Yes — France taxes the gain at source regardless of your home country’s rules. However, most countries have double tax treaties with France that prevent true double taxation, typically through a foreign tax credit in your home country. Check the specific terms of your country’s treaty with France, or ask your tax advisor.
Q: Can I deduct mortgage interest from my capital gain?
A: No. Mortgage interest is not a deductible cost for capital gains tax purposes. The gain is calculated based on the purchase and sale prices, not on how the purchase was financed.
Q: What if I inherited the property?
A: The acquisition price is the declared value at the time of inheritance (as stated in the inheritance declaration), plus any inheritance taxes paid. Taper relief runs from the date of death, not the date the original owner purchased the property.
Q: Is the tax withheld automatically at closing?
A: Yes. The notaire calculates the tax, withholds it from the sale proceeds, and pays it to the French tax authorities on your behalf. You receive the net amount.
Q: Do I need a fiscal representative?
A: If you are resident outside the EU/EEA/Switzerland and the sale price exceeds €150,000, you generally need one. This is a licensed professional who is jointly liable for the tax. Fees typically range from €1,500 to €3,000+ depending on complexity. EU/EEA/Swiss residents are exempt from this requirement.
Q: What about furnished rental properties (LMNP)?
A: If the property was rented furnished under LMNP status, the capital gains are still subject to the private capital gains regime (not business profits), provided you are not classified as a professional landlord (LMP). The same rates and taper relief apply. Note that the Loi de Finances pour 2025 modified the LMP/LMNP qualification criteria — check with your advisor if you’re close to the thresholds.
Q: Can I offset a loss on one French property against a gain on another?
A: No. French property capital gains are calculated per transaction. Losses cannot be carried forward or offset against gains on other sales.
Q: How does Brexit affect UK residents?
A: UK residents continue to benefit from the reduced social charges rate (7.5% instead of 18.6%) under post-Brexit social security coordination arrangements. UK nationals who previously lived in France can still access the €150,000 non-resident exemption, subject to conditions. The post-Brexit position is stable for now, but it’s worth monitoring — these arrangements could theoretically be renegotiated.
Q: Does the PFU (flat tax) apply to non-residents selling French property?
A: No. The PFU (prélèvement forfaitaire unique) is a domestic French regime that applies to financial income (dividends, interest, etc.) received by French tax residents. Property capital gains for non-residents are taxed under their own specific regime (19% + social charges under Article 244 bis A of the CGI). If you hold through an SCI-IS and receive dividend distributions, those are subject to withholding tax under the applicable double tax treaty, not the PFU.
