Real estate & non-residents

The €150,000 threshold and the tax representative: what changes for your sale

Above €150,000 of capital gain, non-EU non-residents must appoint an accredited tax representative. Here is how this threshold works and what it means in practice.

How does the €150,000 threshold work?

The €150,000 threshold mechanism is set out in Article 244 bis A of the French General Tax Code. It provides that when a non-resident established outside the European Union (or outside the EEA) realises a real estate capital gain exceeding this amount, it is mandatory for a DGFiP-accredited tax representative to act as guarantor for the tax owed.

This threshold is assessed on the net capital gain before applying length-of-ownership allowances. In other words, even if the length of ownership significantly reduces the tax effectively owed, the tax representative obligation applies as soon as the calculated gross capital gain exceeds €150,000.

Key point The €150,000 threshold applies to the capital gain (difference between sale price and adjusted acquisition price), not to the sale price. An apartment sold for €500,000 but purchased for €450,000 generates a gross capital gain of only €50,000 — below the threshold.

Practical consequences for the real estate sale

Exceeding the threshold has immediate and concrete consequences on the progress of the transaction:

  • Sale proceeds blocked by the notary: if the threshold is exceeded and no accredited tax representative has been appointed, the notary is legally required not to pay the sale proceeds to the seller. The proceeds remain blocked until the situation is regularised.
  • Conditional signing: in certain cases, the notary may refuse to sign the deed of sale until the accredited tax representative has accepted the mandate and validated the capital gain calculation.
  • Joint and several liability of the representative: the accredited tax representative assumes joint and several liability for the tax owed. That is why they carefully review the file before accepting the mandate.
  • 2048-IMM return co-signed: the capital gain declaration is co-signed by the tax representative and the notary, then submitted to the tax office at the time of the sale.

How to know whether you exceed the €150,000 threshold

A simple preliminary calculation allows you to estimate whether your sale exceeds the threshold:

  • Step 1 — Estimate your sale price: expected net sale price (after agent fees).
  • Step 2 — Calculate your adjusted acquisition price: original purchase price + acquisition costs (actual or 7.5% flat rate) + works (actual or 15% flat rate if held for more than 5 years).
  • Step 3 — Calculate the gross capital gain: Sale price − Adjusted acquisition price.
  • Step 4 — Compare with €150,000: if the gross capital gain exceeds this amount, the obligation applies.
Concrete example An American national sells their holiday home in Provence for €480,000. They purchased it 10 years ago for €280,000, with €21,000 in acquisition costs (7.5%) and €30,000 of documented works. Adjusted acquisition price: €331,000. Gross capital gain: €480,000 − €331,000 = €149,000. Below the €150,000 threshold — the accredited tax representative is not mandatory. But if the works were only €10,000, the capital gain would be €151,000 — above the threshold.

Planning ahead: the key to a smooth sale

The main mistake non-residents make is not planning ahead on the tax representative question. Appointing an accredited professional takes time:

  • Finding a representative who is available and specialises in non-resident real estate
  • Providing them with the file documents (acquisition deeds, works receipts, title deed)
  • Signing the representation mandate
  • Waiting for their validation before signing at the notary

In practice, starting the search as soon as the property is listed for sale — rather than after signing the preliminary agreement — avoids any blockage. If the capital gain estimate is close to the €150,000 threshold, it is prudent to appoint a representative as a precaution. Their cost is negligible compared to the risk of a transaction being blocked.

Watch out for the preliminary agreement The preliminary sale agreement often specifies a date for signing the authenticated deed. If the tax representative is not appointed in time, the signing may be postponed, resulting in penalties under the forfeiture clause or damages in favour of the buyer.

To plan ahead and find an accredited real estate tax representative without delay, consult our list of DGFiP-accredited tax representatives now.

Frequently asked questions

The €150,000 threshold is assessed on the net capital gain before applying length-of-ownership allowances. Therefore, even if the taxable capital gain after allowances is below €150,000, if the gross capital gain exceeds this threshold, the accredited tax representative obligation applies.
If the threshold is identified late, the notary is required to block the payment of the sale proceeds until an accredited tax representative is appointed. The sale can be delayed by several weeks, with the risk of penalties if the final deed of sale cannot be signed within the timelines set in the preliminary agreement.
For non-EU/EEA non-residents whose capital gain is below €150,000, appointing an accredited tax representative is not legally mandatory. It is the notary who directly makes the withholding tax deduction and remits it to the authorities. However, using a tax representative is still advisable to check the calculation and optimise deductions.
The threshold applies per sale transaction, i.e. per property sold. If a non-resident sells two properties in France on the same day, each sale is assessed separately. However, if several sellers jointly own a single property, the threshold is assessed on the share of the capital gain attributable to each non-EU non-resident seller.
No. The accredited tax representative obligation for real estate capital gains only applies to non-residents established outside the European Union, Iceland, Norway, and Liechtenstein. EU and EEA residents are exempt, regardless of the capital gain realised.
Official sources — impots.gouv.fr — BOFiP — Art. 244 bis A CGI — legifrance.gouv.fr

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