Capital Gains Tax on French Real Estate for Non-Residents: Rates, Exemptions and Tax Representative in 2026
Selling a property located in France while living in Geneva, Brussels, London or Dubai does not release you from French tax. France retains the right to tax real estate situated on its territory, a right that most tax treaties expressly recognise, and it is on that basis that it taxes the capital gains of non-residents on French real estate.
In practice, the seller bears 19 % income tax on the gain, plus social charges of 7.5 % or 17.2 % depending on their social security status. Exemptions exist, notably the €150,000 exemption and the exemption for a former main residence, but they are strictly framed and require compliance with precise deadlines.
Here is, point by point, the framework applicable in 2026 to the taxation of non-residents’ capital gains on French property: rates, holding-period allowances, exemptions, the tax representative and the precautions to take before signing the deed of sale.
Who is subject to French tax on a non-resident’s real estate capital gain?
Any taxpayer whose tax residence is outside France, within the meaning of article 4 B of the French Tax Code (CGI), who realises a gain is concerned:
on the sale of real estate located in France, or any other transfer for consideration: apartment, house, land, investment building;
on the sale of shares in a property-rich company, that is, a company whose assets mainly consist of real estate located in France, such as a société civile immobilière (SCI).
The seller’s nationality is irrelevant: it is their tax residence that triggers this regime, set out in article 244 bis A CGI.
What is the capital gains tax rate for a non-resident in 2026?
The tax is made up of several levies:
Income tax, 19%: flat levy, whatever the seller’s country of residence;
Social charges, 17.2%: CSG of 9.2%, CRDS of 0.5% and solidarity levy of 7.5%;
Solidarity levy only, 7.5%: rate applicable to a taxpayer affiliated to a social security scheme of the European Economic Area (EEA) or Switzerland, who is not covered by a compulsory French scheme and can prove it;
75% rate: where the seller is domiciled, established or incorporated in a non-cooperative State or territory;
Surtax on high real estate gains: progressive surtax of 2% to 6% where the taxable gain exceeds €50,000.
A useful clarification: the increase in the CSG on investment income that took effect in 2026 does not, as matters stand, apply to real estate capital gains, which remain subject to social charges at 17.2%.
Example: Mrs X, tax resident in Geneva, sells an apartment in Nice with a taxable gain of €200,000 (the base is assumed identical for income tax and social charges, for simplicity). She pays €38,000 of income tax (19%). If she proves her affiliation to a Swiss scheme, she owes only €15,000 of solidarity levy (7.5%); otherwise she owes €34,400 of social charges (17.2%). The surtax on high gains comes on top.
Holding-period allowances
The gain is computed under the same rules as for a French resident, taking holding-period allowances into account:
Income tax: 6% per year from the 6th to the 21st year of ownership and 4% for the 22nd year, i.e. a full exemption after 22 years;
Social charges: 1.65% per year from the 6th to the 21st year, 1.60% for the 22nd year, then 9% per year thereafter, i.e. a full exemption after 30 years.
The gap between these two thresholds has a practical consequence: a property held for 25 years escapes income tax but remains subject to social charges.
The €150,000 exemption: a relief reserved for certain non-residents
Article 150 U, II-2° CGI exempts the gain realised on the sale of a dwelling located in France by a non-resident, limited to one residence per taxpayer and to €150,000 of net taxable gain. The seller must, however, meet four cumulative conditions:
Be a national of an EU Member State or of another EEA State that has concluded with France an administrative assistance agreement to combat tax fraud and evasion;
Have been continuously tax resident in France for at least two years at some point before the sale;
Sell within the time limit: no later than 31 December of the fifth year following the year in which tax residence was transferred outside France, or, with no time limit, if the seller has had free use of the property since at least 1 January of the year preceding the sale;
Not have already benefited from this exemption since 1 January 2006.
The €150,000 ceiling is assessed per seller. For unmarried partners or co-owners, it is assessed on each person’s share of the gain. For a married couple selling jointly owned property, it is accepted that it be assessed in the same way: the exemption can thus reach €300,000 of gain in total. The portion above €150,000 is taxed under ordinary rules.
The former main residence. Under article 244 bis A, I-1° CGI, the gain is fully exempt where the property was the seller’s main residence on the date their tax residence moved outside France, subject to three conditions: the sale must take place no later than 31 December of the year following the departure, the property must not have been made available to a third party, free of charge or for consideration, and the taxpayer must not have already benefited from the €150,000 exemption.
By contrast, a non-resident cannot rely on the ordinary exemption for the sale of a main residence, nor on the one applicable to the first sale of a dwelling that is not a main residence.
Is a tax representative required?
A non-resident selling real estate in France must in principle appoint an accredited tax representative, who guarantees payment of the tax. An automatic exemption applies in four situations:
the seller is domiciled, established or incorporated in an EU Member State, or in Iceland or Norway;
the sale price is €150,000 or less, assessed per seller;
the sale is exempt from income tax and social charges because of the holding period (22 and 30 years);
the sale concerns the former main residence exempt under article 244 bis A, I-1° CGI.
Where no exemption applies, the representative may be a credit institution operating in France, an organisation permanently accredited, or any person tax resident in France, excluding notaries and lawyers. Accreditation is requested from the departmental or regional public finance directorate for the place where the property is located: the process takes time and should be anticipated as soon as the preliminary sale agreement is signed.
Filing and payment: the notary’s role
Income tax and social charges are paid by the notary at the time of the sale, by deduction from the price. If the non-resident also receives French-source income subject to income tax, such as rental income, the gain must also be reported on tax return form no. 2042 C (box 3VZ) so that it is included in the computation of the reference tax income.
The French tax authorities detail these rules in their documentation on non-residents’ real estate capital gains.
Tax treaties and double taxation
Bilateral tax treaties override domestic law. Most give France the right to tax gains on real estate situated in its territory. The seller’s State of residence then eliminates double taxation, either through an exemption with or without a progression clause, or through a tax credit. Before signing, you must therefore examine the applicable treaty and how the gain will be treated in the country of residence.
Owning property in France may also make a non-resident liable to French real estate wealth tax (IFI), and its transfer on death follows specific rules, explained in our article on international successions and the applicable law.
Our advice before selling French property from abroad
Quantify the tax before the preliminary agreement, taking into account allowances, the surtax on high gains and the social charges rate applicable to your situation.
Check your eligibility for the €150,000 exemption and the timetable: the five-year period runs from your departure from France.
Anticipate the tax representative where no exemption applies, so as not to delay the signing of the notarial deed.
Prove your affiliation to an EEA or Swiss scheme to bear only 7.5% of social charges.
Analyse the tax treaty between France and your country of residence to avoid double taxation.
The sale of French property by a non-resident is often decided before signing: an exemption lost by a few months or a tax representative appointed too late can cost tens of thousands of euros. Our firm, admitted to the Marseille and Geneva bars, assists you in analysing your situation and securing the transaction. Contact D’Onorio di Méo Avocats.
FAQ: non-residents’ capital gains on French real estate
What is the capital gains tax rate on French real estate for a non-resident in 2026?
The gain is subject to income tax at a flat rate of 19 %, whatever the seller’s country of residence, plus social charges of 17.2 %. The social charges drop to 7.5 % (solidarity levy only) for a taxpayer affiliated to a social security scheme of the European Economic Area or Switzerland and not covered by a French scheme. The income tax rate rises to 75 % where the seller is domiciled in a non-cooperative State or territory. An additional surtax of 2 % to 6 % applies to taxable gains above €50,000.
Can a non-resident be exempt from capital gains tax when selling property in France?
Yes, in two main cases. Article 150 U, II-2° of the French Tax Code (CGI) exempts the net taxable gain up to €150,000 on the sale of a dwelling, subject to conditions on nationality (EU or EEA with an administrative assistance agreement), prior French tax residence of at least two years and the timing of the sale. Article 244 bis A, I-1° CGI fully exempts the sale of a former main residence where the sale takes place by 31 December of the year following the departure from France, and the property has not been made available to a third party.
After how many years is the capital gain exempt for a non-resident?
The holding-period allowances are the same as for a French resident. The gain is exempt from income tax after 22 years of ownership and from social charges after 30 years. A property held for 25 years therefore remains subject to social charges but no longer to income tax.
How can I pay only 7.5 % of social charges on my gain?
You must be covered by a social security scheme of an EEA State or Switzerland, without being a dependant of a compulsory French scheme, and be able to prove it. A mere insurance card is not enough: the certificate must establish that you are not covered by a French scheme. Otherwise, the 17.2 % rate applies.
Is a tax representative mandatory to sell a property in France from abroad?
In principle yes, unless an exemption applies. No representative is required where the seller is domiciled in an EU Member State (or in Iceland or Norway), where the sale price is €150,000 or less per seller, where the gain is fully exempt because of the holding period (22 and 30 years), or where the sale concerns a former main residence exempt under article 244 bis A, I-1° CGI.
Who pays the tax on the gain: the seller or the notary?
The notary pays the income tax and social charges at the time of the sale, by deduction from the sale price. If the non-resident also receives taxable French-source income, the gain must be reported on tax return form no. 2042 C (box 3VZ) to compute the reference tax income.
Does the sale of shares in a property-holding company (SCI) owning French real estate fall within the regime?
Yes. The sale of shares in a company whose assets are mainly made up of real estate located in France, such as a société civile immobilière (SCI), is taxed under the same regime as a direct sale of the property (article 244 bis A CGI).
How can double taxation of the gain be avoided?
The tax treaty between France and the seller’s country of residence must be examined. Most treaties give France the right to tax gains on real estate situated in its territory, and the State of residence then eliminates double taxation through an exemption (with or without progression clause) or a tax credit. The treatment of the gain in the country of residence must be checked before signing.
Eve d'Onorio di Méo
Avocat Spécialiste en Droit Fiscal
Barreau de Marseille et Genève (Avocat UE/AELE)
Comments