Two questions on property capital gains outside France
I live in France and have a flat in the UK which I bought in 1995. I understand if I sell it after 2025 (30 years), I will avoid French capital gains tax and social charges but I may have UK CGT to pay. If I were to apply for an Irish passport, would this change? I sold a property in Portugal last year for which I will have to pay some capital gains tax in Portugal. Do I need to make a declaration on the French tax forms?
France's double tax treaties for the UK and Portugal are similar, in that first and foremost capital gains on a property are declared and paid in the country in which it is situated. Hence, you need to declare to the UK or Portugal, according to their national tax rules.
The UK only applies capital gains tax to any gains that accrued between April 6, 2015 and the date of sale.
The gains are also declarable to France but with the allocation of a tax credit equal to the foreign tax, which comes off any French tax or social charges that may be payable. No French tax or charges are payable by a French resident if a property is sold after 30 years of ownership and a person’s nationality has no effect on this.
Otherwise, strictly speaking, a property capital gain, including one made abroad, is meant to be declared to the tax authorities within a month, on form 2048-IMM-SD.
It includes a line at 120 to show the tax credit amount if the sale was abroad.
We suggest talking to your tax office if in doubt.