Tax representative and real estate in France for non-residents

Why is a tax representative necessary for real estate?

When a non-resident sells property located in France and realises a capital gain, the French State needs a local point of contact to ensure payment of the corresponding tax. This is the role of the accredited tax representative: they calculate the taxable capital gain, prepare the tax return, collect the tax from the sale price and remit it to the French tax administration.

Without a tax representative, the notary is legally required to withhold part of the sale proceeds to cover the estimated tax. This withholding mechanism protects the State against the risk of tax evasion by taxpayers with no fiscal ties in France. The tax representative removes this block by taking charge of the return and payment within the regulatory deadlines.

Who is subject to the real estate tax representative obligation?

The obligation to appoint an accredited tax representative for a property sale applies to the following categories:

• Non-resident individuals whose gross capital gain on the sale exceeds €150,000, regardless of nationality (except EEA nationals under certain conditions)
• Non-resident legal entities (foreign companies, foreign SCIs, offshore holding companies) that sell French real estate, with no threshold requirement
• Non-residents receiving rental income in France where that income triggers a VAT obligation (professional furnished letting, commercial property)
• Estates and inheritances involving the sale of French real estate by non-resident heirs

By contrast, nationals of the European Economic Area (EU + Iceland, Liechtenstein, Norway) benefit from an exemption from the accredited tax representative requirement through mutual assistance mechanisms between member states, provided their country is effectively bound to France by a mutual recovery assistance convention.

Taxation on a property sale for non-residents

The taxation of a property sale by a non-resident involves several layers of tax. The net taxable capital gain is calculated by deducting from the sale price the acquisition price, acquisition costs, renovation works carried out, and ownership-period allowances. A 6% annual allowance applies from the 6th to the 21st year of ownership, then 4% for the 22nd year, leading to full income tax exemption after 22 years.

On the net capital gain thus calculated, two cumulative taxes apply:

• Income tax: rate of 19% for EEA residents, 26.5% for residents of other countries (subject to applicable tax treaties)
• Social levies: 17.2% levied on all non-residents (with possible exemption for those affiliated to a social security scheme in an EEA state)
• Surcharge: from 2% to 6% for net capital gains exceeding €50,000

The tax representative files the return on form 2048-IMM, calculates the total tax and makes the payment at the time of the notarial deed. This must therefore be prepared before the final signing with the notary.

Guides in this section

Find below all guides on real estate fiscal representation in France for non-residents.

Frequently asked questions