When the sale of a property, the gain is in principle subject to a high taxation. But we can avoid it.

Before you sell a property, verify the fate that will be reserved for your real appreciation. With a little luck, you are affected by one of the cases of exemption established by the general tax Code.

1 • Sale of primary residence . This is the main exemption. Regardless of the amount of your gain, and the duration of ownership or occupation of the property as a principal residence (even six months, according to the case-law *), the capital gain is never taxed. The advantage applies even if the slot is empty during the sale. A reasonable time should only be passed between the move and the sale. A year is still tolerated, beyond that, it is necessary to argue (characteristics of the property, prices, real estate market situation…).

In case of separation, the exemption is granted even for one who has left the apartment (including if it is owner of a new principal residence) and even if the sale comes years after the break-up. The other, however, must have occupied the property until its sale (in the official tax Bulletin BOI-RFPI-PVI-10-40-10 the 19/12/2018).

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2 • Enter in a retirement home. people with modest incomes living in retirement homes may be exempt from value-added on the occasion of the sale of their old principal residence. The transfer must be made within two years after the entry in the institution. For sale in 2019, the tax income in 2017 and the seller should not exceed 25 432 € for a share of the family quotient (36 051 € for two units).

Attention, the housing must be kept empty of occupancy (with the exception of the occupation by the spouse, common-law partner or a dependant).

3 • First sale of a dwelling (other than your principal residence). On this occasion, you will benefit from an exemption of the capital gain if you are not the owner of your main home (and have not been the past four years). Instead, you must commit to re-use the sale price in the purchase or construction of a main residence within two years.

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4 • Property held for more than thirty years. as Soon as you separate yourself from a property other than your principal residence and that it is not your first assignment, you are subject to tax (secondary residences, rental housing, land…). But from five years of detention, the gain undergoes an allowance which reduces the tax, or removes it if the property is held for more than thirty years.

5 • Abatement for special land. You have a field (built or not) in the area tense ? By selling before December 31, 2020 (the date of the promise of sale) you get a special tax allowance of 70 % on the gain. Your buyer must undertake to achieve one or several housing buildings as a collective and to complete them within four years after purchase.

6 • Amount not exceeding 15 000 €. If the sale price does not exceed the sum of (parking lot, garage, or units of ownership, for example), the exemption is granted.

7 • new for expats. In case of departure abroad and the selling of the principal residence, you now enjoy an exemption from capital gain tax. Two conditions are required : the property must be sold prior to December 31 of the year following the year of the transfer of tax residence out of France and he must remain unoccupied. If you put your property in the rental, you take advantage of, in the event of subsequent disposal, for an exemption of up to 150 000 € of capital gain if the property is sold not later than ten years after the departure out of France, as opposed to five years previously (finance law for 2019).

numbers to know

36.2 per cent. This is the tax rate flat rate of capital gains on real estate (19 % of tax on income, and 17.2% in respect of social security contributions).

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capital gains on real estate – Taxation – Taxation

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2 6 % . It is the surcharge applicable to capital gains superior to € 50,000 (excluding building land).

(1) administrative Court of appeal of Douai n° 16DA01692 of the 6/02/2018)