With Capital Gains Tax in the news in the UK, here’s the French position.
No capital gains tax is payable to the French government on the sale of a principal residence by a French resident (and taxpayer) whatever their nationality. You just have to pay the Notaire’s fees and repay your French mortgage.
For second homes CGT is levied at 16% for EU residents with French residents paying an extra 11% social charges, while non-EU residents are charged 33%. The Notaire will collect the tax at the point of sale.
However, capital gains tax is reduced progressively by 10% per year after 5 years’ ownership, so there is no tax to pay after 15 years. The cost of improvements carried out by French-registered contractors can be deducted from the capital gain between buying and selling prices. French residents also pay CGT on the sale of a second home, wherever it is situated. They too are exempt from capital gains tax on the sale of a second home after 15 years ownership.
If you are thinking of relocating to France, where Capital Gains are treated differently, Best French Mortgage can organise a mortgage for your French home at the best rates from the best French banks.
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