Real estate & Fiscal representation

Capital Gains Exemptions for Non-Residents Selling Property in France

As a non-resident, you may be entitled to significant exemptions on the capital gain from your property in France. Find out which ones apply to your situation.

Taxation principle for non-residents' capital gains

Non-residents who sell a property located in France are in principle subject to French tax on the capital gain realised. The basic tax rate is 19% for nationals of a European Union or EEA member state, and 36.2% (including social levies) for residents of third countries. Outside the EEA, social levies of 17.2% are added to the 19%.

However, several exemption or allowance mechanisms can reduce or even eliminate this tax liability. It is essential to identify them before the sale, as they must be declared and substantiated in the form 2048-IMM prepared by the accredited tax representative.

Key point The exemptions and allowances available to non-residents are broadly the same as those for residents, with a few specificities linked to non-resident status or the seller's nationality.

The specific exemption for EU/EEA non-residents

Non-residents who are nationals of an EU or EEA member state (or French nationals who have transferred their tax domicile to such states) benefit from a specific exemption on the first sale of a residential property in France. This exemption is capped at €150,000 of net taxable capital gain (Article 150 U II-2° of the French General Tax Code (CGI)).

To benefit from this exemption, several cumulative conditions must be met:

  • The seller must be a national of an EU, EEA, or Swiss state
  • They must have been continuously domiciled for tax purposes in France for at least two years
  • The sale must concern a residential property (primary residence or rental)
  • It must be the first sale since the change of tax domicile
  • The property must have been freely available at least since 1 January of the year preceding the sale

Exemption for the sale of a former primary residence

Since the 2019 Finance Act, non-residents may benefit from the capital gains exemption for the sale of a primary residence, which until then applied only to residents. This extension covers nationals of EU, EEA, or Swiss states, or states that have concluded an administrative assistance agreement with France.

The conditions to be met are:

  • The property must have been the seller's primary residence up to their departure from France
  • The sale must take place no later than 31 December of the year following the transfer of tax domicile outside France
  • The property must not have been rented out or lent between the departure date and the sale
Practical example Ms L., a French national, leaves Paris in March 2026 to settle in Dubai. She puts her apartment — her former primary residence — up for sale in October 2026. The sale generates a capital gain of €80,000. She is fully exempt because the sale takes place within the year following her departure and the property has not been rented out.

Holding-period allowances

Independently of specific exemptions, all non-resident sellers benefit from holding-period allowances applicable in France. These allowances progressively reduce the taxable base until full exemption is achieved.

Holding periodIncome tax allowance (per year)Social levies allowance
Less than 6 years0%0%
6 to 21 years6% / year1.65% / year
22nd year4% (full income tax exemption)1.60%
23 to 30 yearsFull income tax exemption9% / year
After 30 yearsFull exemptionFull exemption
Do not confuse exemption with the absence of a tax representative Even if the capital gain is exempt or nil, the obligation to appoint an accredited tax representative may still apply if the sale price exceeds €150,000. A tax exemption does not remove the formal obligation to make the appointment.

To optimise your tax position and ensure that all applicable exemptions are taken into account, use an accredited tax representative specialising in non-resident real estate matters.

Frequently asked questions

Yes, subject to strict conditions. The 2019 Finance Act extended to non-residents who are EEA nationals the exemption applicable to the sale of a former primary residence in France, provided the property was the primary residence until the date of departure and the sale takes place no later than 31 December of the year following the departure.
Yes. Non-residents benefit from the same holding-period allowances as residents: 6% per year from the 6th to the 21st year, and 4% in the 22nd year for income tax purposes. Full income tax exemption is achieved after 22 years of ownership. For social levies, full exemption is achieved after 30 years.
Non-residents who are nationals of an EU or EEA member state benefit from an exemption capped at €150,000 of net taxable capital gain on the first sale of a property in France, subject to having been a French tax resident for at least two consecutive years at any point in time.
Yes. The obligation to appoint an accredited tax representative (for sales > €150,000) and entitlement to an exemption are two separate matters. The tax representative calculates the capital gain taking into account any applicable exemptions and allowances, then prepares the declaration on that basis.
Official sources — impots.gouv.fr — BOFiP — Article 150 U CGI — legifrance.gouv.fr

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