Selling property in France as a non-resident: tax and procedure

Selling property in France while living abroad is a technical process that requires forward planning. Capital gains are taxed differently depending on your country of residence, a tax representative may be mandatory, and the remote sale procedure requires meticulous organisation. At Home Select, our core business is buying: we do not sell. But our intimate knowledge of the Parisian market, built over more than 1,200 mandates since 2011, allows us to guide our former clients who are selling towards the right professionals and to oversee the process if needed.

How is a non-resident’s capital gain calculated?

It equals the difference between the selling price and the purchase price increased by costs, then taxed at 36.2%: 19% income tax plus 17.2% social contributions. Holding period abatements apply from the 6th year and lead to full income tax exemption after 22 years and full social contributions exemption after 30 years.

The principle

The capital gain on property (plus-value immobiliere) is the difference between the selling price and the purchase price. The purchase price is increased by actual acquisition costs (notary fees, buyer’s agency commission at the time) or a flat 7.5%, and by actual works expenditure (with receipts) or a flat 15% if the property has been held for more than 5 years.

The selling price is reduced by disposal costs (estate agent’s commission if paid by the seller, mandatory diagnostics).

The tax rate

For a non-resident, the net capital gain is taxed at 19% income tax plus 17.2% social contributions, for a total rate of 36.2%. This rate applies regardless of your nationality or country of residence.

For capital gains exceeding 50,000 euros, a progressive surcharge applies: 2% from 50,001 to 100,000 euros, 3% from 100,001 to 150,000 euros, and so on up to 6% above 260,000 euros. This surcharge can bring the total effective rate above 40% on large capital gains.

Holding period abatements

This is the mechanism that progressively reduces taxation. For income tax (19%), the abatement is 6% per year from the 6th to the 21st year of ownership, then 4% in the 22nd year, giving full exemption after 22 years of ownership. For social contributions (17.2%), the abatement is 1.65% per year from the 6th to the 21st year, 1.60% in the 22nd year, then 9% per year from the 23rd to the 30th year, giving full exemption after 30 years.

In practice: a property purchased in 2012 and sold in 2027 (15 years of ownership) benefits from a 60% abatement on income tax (10 years x 6%) and a 16.5% abatement on social contributions. On a gross capital gain of 200,000 euros, the income tax drops from 38,000 to 15,200 euros, and social contributions from 34,400 to 28,724 euros. The saving from the holding period is considerable, and is often the main argument against selling too early.

When is a tax representative mandatory?

As soon as the seller resides outside the European Union, the European Economic Area or a country bound to France by an administrative assistance agreement, and the selling price exceeds 150,000 euros. The representative costs 0.5 to 1% of the selling price, that is 5,000 to 10,000 euros on a property sold at 1 million euros.

When is it mandatory?

A tax representative (representant fiscal) is mandatory when the seller resides outside the European Union, the European Economic Area (Norway, Iceland, Liechtenstein) or a country with an administrative assistance agreement with France, and the selling price exceeds 150,000 euros. EU and EEA residents are exempt from this requirement.

In practice, a seller residing in the United States, the United Kingdom (post-Brexit), Dubai, Singapore or Australia must appoint an accredited tax representative. A seller residing in Germany, Spain or Italy does not need one.

The role and cost

The tax representative is jointly liable for payment of the capital gains tax to the French tax authorities. They verify the capital gains calculation, ensure the tax compliance of the transaction, and act as guarantor. The cost is generally 0.5 to 1% of the selling price, or 5,000 to 10,000 euros for a property sold at 1 million euros. This is a cost many non-resident sellers discover late and that deserves to be budgeted from the decision to sell.

The tax representative is chosen from among accredited firms (such as Sarf, Orbiss or Fiscal Reps). Your notary can recommend one.

Discover how Home Select supports international buyers

How does the sale unfold and what does the notary do?

The notary calculates the capital gains tax on the day the final deed is signed, withholds it from the selling price and pays it to the French Treasury: the seller receives only the net balance. They also draft the power of attorney that allows remote signing, and check the mandatory diagnostics file, which costs 400 to 800 euros for a Parisian apartment.

The notary’s role in the sale

The notary (notaire) calculates the capital gains tax on the day of signing the final deed (acte authentique), withholds it from the selling price, and pays it directly to the French Treasury. The seller receives only the net balance: selling price minus capital gains tax, minus estate agent’s commission, minus repayment of any outstanding loan, minus mortgage release costs.

This withholding mechanism is a French specificity that simplifies life for the non-resident seller: no need to set aside the tax or declare it separately. The notary handles everything.

Selling remotely: the power of attorney

If you cannot be present in Paris on the day of signing, the sale can be completed by power of attorney, the same mechanism as for buying remotely. The power of attorney is drafted by the notary, signed before a local notary or at the French consulate in your country of residence, apostilled (Hague Apostille), and sent to the Parisian notary. Video conferencing with the notary is also an increasingly common option.

Mandatory diagnostics

The seller is required to provide a technical diagnostics file including the DPE (energy performance rating), asbestos diagnosis (for buildings constructed before 1997), lead diagnosis (for buildings constructed before 1949), natural and technological risks statement, electricity and gas diagnostics (if the installations are more than 15 years old), and the Carrez measurement (official floor area measurement). The total cost of diagnostics is 400 to 800 euros for a Parisian apartment. They must be carried out by a certified diagnostician. Your notary or estate agent can recommend one.

In which cases is the capital gain exempt?

Three main cases: the sale of a primary residence (full exemption, with no holding period condition and no cap), the first disposal by a non-resident who is an EU or EEA national (up to 150,000 euros of gain and under strict conditions), and long-term holding (income tax exemption after 22 years, social contributions exemption after 30 years).

Primary residence

If the property sold was your primary residence at the time of listing for sale, the capital gain is fully exempt, with no holding period condition and no cap. This is the most generous exemption in the French tax system. But for a non-resident who has left France, the condition of actual residence at the time of sale is rarely met. A property occupied as a primary residence until departure for an expatriation loses this status as soon as you cease to reside there.

First disposal by an EU non-resident

Non-residents who are EU or EEA nationals benefit from a specific exemption: the first disposal of a property in France is exempt from capital gains up to 150,000 euros of gain. The conditions are strict: having been a French tax resident for at least two years before the disposal, not having owned your primary residence in France during the four years preceding the disposal, and the disposal must occur by December 31st of the 10th year following the transfer of residence outside France.

Long-term holding

The holding period exemption remains the most common route: full income tax exemption after 22 years, full social contributions exemption after 30 years. For a property purchased in 1997, a sale in 2027 would be fully exempt from all capital gains tax.

How is the capital gain calculated when the property is held by an SCI?

It depends entirely on the tax regime. Under an SCI subject to income tax, the calculation is identical to direct ownership, holding period abatements included. Under an SCI subject to corporate tax, the gain is calculated on the net book value (purchase price minus depreciation), and the combination of 25% corporate tax plus the 30% flat tax can push the total charge above 45% of the selling price.

If the property is held through an SCI subject to corporate tax (IS regime), the capital gain is calculated on the net book value, meaning the purchase price minus depreciation taken. After 20 years of depreciation, the book value may be close to zero, making virtually the entire selling price taxable. The capital gain is then taxed at the corporate rate (25% in 2026-2027), then profits distributed to shareholders are subject to the flat tax (PFU) of 30% (or the progressive scale on election).

The combined IS + PFU burden can bring the total tax charge above 45% of the selling price for an SCI that has heavily depreciated the property. This is the classic SCI trap that we systematically flag to our investor clients.

For an SCI subject to income tax (IR regime), the capital gain is calculated as for individual ownership, with the same holding period abatements. The regime is identical: the SCI is fiscally transparent.

How do you avoid double taxation on the capital gain?

Through the bilateral tax treaty between France and your country of residence, which provides for a tax credit, exemption with progression, or a deduction. Most of these treaties attribute the right to tax property capital gains to the country where the property is located, so to France; without a treaty, double taxation is a real risk.

Most bilateral tax treaties attribute the right to tax property capital gains to the country where the property is located, France in our case. But your country of residence may also tax this capital gain as part of taxing your worldwide income. The tax treaty then provides a mechanism for eliminating double taxation: tax credit, exemption with progression, or deduction.

The Franco-American treaty, for example, allows a US resident selling property in France to deduct the capital gains tax paid in France from their federal US tax (foreign tax credit). The Franco-British treaty follows a similar mechanism. For residents of a country without a tax treaty with France, double taxation is a real risk, and an additional argument for consulting a tax specialist before listing the property.

How do you prepare a sale from abroad?

Allow 2 to 3 months between the decision to sell and the listing, against a few weeks for a standard sale. That time is spent identifying a trusted agent, completing the diagnostics, estimating the price, preparing the tax file and drafting the power of attorney.

Preparing a property sale from abroad takes longer than a standard sale. Allow 2 to 3 months between the decision to sell and the listing: identifying a trusted estate agent, completing the diagnostics, estimating the price, preparing the tax file (provisional capital gains calculation, identifying the tax representative if needed), and drafting the power of attorney if you will not be present.

At Home Select, our primary business is buying for our clients, not selling. But our network, built over 15 years of activity and more than 1,200 mandates across all Parisian arrondissements, includes trusted estate agents to whom we refer our former clients who are selling. The property tax framework for non-residents holds no secrets for our partner notaries and tax advisors, who support the transaction from start to finish, even when the seller is 10,000 kilometres from Paris.

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