Selling up in France? Know your tax liability

Whenever we buy an investment, even if it is the family home, we always expect it to increase in value. It feels good to find we have made a good profit when we come to sell, but that satisfaction can be tempered somewhat when we realise how much tax we have to pay.

So it is worth understanding now what capital gains tax rules apply to you as a French resident, or if you own property here.

The tax rules, rates and allowances differ for gains made on movable and immoveable assets. This article focuses on capital gains tax on property. I will look at tax on the sale of investments likes shares and bonds in a later article.

As always in France, you have two sets of tax to pay: capital gains tax and social charges.

The standard capital gains tax rate on the sale of real estate is 19%.

Progressive surcharges are added for gains over €50,000, starting at 2% and rising to 6% for gains over €260,000.

This makes a potential top tax rate (including full social charges) of 42.2% – but there are various reliefs and exemptions so you should not have to pay this much tax.

The standard social charges rate for investment income, including property ...

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