Income tax - Real estate capital gain

Verified 15 April 2026 - Public Service / (Prime Minister)

You sold a property more expensive than you bought it? In this case, you have realized an added value. It is taxable. Your residence principal is exempt. You can also benefit from an exemption or abatement on taxes payable according to the characteristics of the property or your personal situation. We present you the information to know.

When you sell a property that you own, you must calculate the difference between the following prices:

  • Sale price of the property
  • Purchase price of the property.

If the result of this calculation is positive (you sell more expensive than you bought), you realize a gain called added value.

If the result is negative, you realize a loss called a capital loss.

Example :

You bought a home for the price of €100,000.

If you resell it for the price of €120,000, you realize a added value of €20,000 (€120,000 - €100,000).

If you resell the property at the price of €90,000, you realize a loss of value of €10,000 (€90,000 - €100,000).

Real estate capital gains are subject to income tax.

They are also subject to social levies.

You are subject to income tax for real estate capital gains realized under the management of your private real estate assets.

You are concerned in the following cases:

  • Sale of real estate (apartment, house, land, forest, farmland)
  • Sale of rights to immovable property (easements , usufruct, bare-property for example)
  • Sale of property or rights through a real estate civil business (not subject to business tax) or a real estate investment fund (REIT)
  • Exchange of goods, division or business.

You are concerned by the taxation of the capital gain that your tax residence located in France or abroad.

Please note

Special rules apply for non-residents.

Taxation is established in its entirety for the year in which the sale occurred, regardless of the terms of payment of the sale.

This is the case if you opt for a life sale, with payment of a life annuity and of a possible bouquet.

You are fully exempt if you realize a capital gain on the sale of your primary residence and its outbuildings (cellar, garage, parking space, yard, etc.).

This is your usual and effective home, that is to say the one you occupy most of the year.

The dwelling must be your main residence at the time of sale.

In the event of separation or divorce, one of the former spouses (married, entered into a civil partnership or cohabiting) must have occupied the dwelling until it is put up for sale.

The main exemptions tax on real estate capital gains are linked to the following:

  • Characteristics of the property transferred
  • Seller's situation
  • Situation of the purchaser.

Most exemptions are granted subject to conditions.

Exemptions related to the property transferred

You are exempt from tax on real estate capital gains for any well held for more than 22 years.

Please note

Capital gains realized on the sale of property held for more than 30 years are also exempt from social security contributions.

You are too exempt in the event of sale of a dwelling other than the principal residence if you comply with the 2 conditions following:

  • You use the sale price to buy or build your main home within 2 years
  • You have not owned your principal residence in the 4 years preceding the sale.

The exemption applies, at your request, by a mention in the deed of sale. You can benefit from this exemption only once.

You are also exempt in the following cases

  • Property whose sale price does not exceed €15,000
  • Sale of a elevation right until December 31, 2026
  • Well exchanged in the context of certain consolidation.

Seller Exemptions

You can benefit from a exemption subject to conditions if you have any of the following:

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You are receiving an old age pension

You can benefit from a exemption subject to conditions resources if you or your spouse are receiving a retirement pension or reversion.

For a sale in 2026, you are exempt if your reference tax income does not exceed €12,793 for the 1re share of family quotient (+ €3,428 per additional half-share) in 2024.

Please note

The amounts are different in the Dom: titleContent.

You must not be subject to theIFI: titleContent (for the penultimate year preceding the sale).

You have a mobility inclusion card (CMI)

You can benefit from a exemption subject to conditions resources if you, or your spouse, have mobility card disability inclusion.

For a sale in 2026, you are exempt if your reference tax income does not exceed €12,793 for the 1re share of family quotient (+ €3,428 per additional half-share) in 2024.

Please note

The amounts are different in the Dom: titleContent.

You must not be subject to theIFI: titleContent (for the penultimate year preceding the sale).

You are staying in a residential care facility for the elderly

You can benefit from a exemption, subject to conditions, if you live in a care facility for the elderly (Ehpad: titleContent for example).

You are exempt if you sell your former principal residence, under certain conditions.

For a sale in 2026, your income must not exceed €30,024 for the 1re share of family quotient (+ €7,015 for the 1re additional half-part and €5,522 for subsequent halves) in 2024.

Your former principal residence must be sold within 2 years of entering the property. It must not have been occupied (rented or loaned), except by your spouse.

Please note

The amounts are different in the Dom: titleContent.

You must not be subject to theIFI: titleContent (for the penultimate year preceding the sale).

You are staying in a facility for adults with disabilities

You can benefit from a exemption, subject to conditions, if you live in a residential facility for disabled persons (e.g. a living home or a specialized residential home).

You are exempt in the event of the transfer of your former principal residence, under certain conditions.

For a sale in 2026, your income must not exceed €30,024 for the 1re share of family quotient (+ €7,015 for the 1re additional half-part and €5,522 for subsequent halves) in 2024.

Your former principal residence must be sold within 2 years of entering the property. It must not have been occupied (rented or loaned), except by your spouse.

You must not be subject to theIFI: titleContent (for the penultimate year preceding the sale).

You are a non-resident in France

The capital gain you realize is taxable under the same conditions as for a French resident.

If you are not a national of a Member State of theUE: titleContent or theEEE, special provisions may be provided for by international convention.

However, you are exempt, subject to conditions, if the capital gain is realized on the sale of your principal residence.

You must meet the following 2 conditions:

  • The sale was made no later than December 31 of the year following that of the transfer of your tax domicile outside France
  • The accommodation was not made available to a third party between the transfer of domicile and the sale.

You are also exempt in case of sale of another residence and within the limit of a capital gain of €150,000, if you meet the following conditions:

  • You are a national of an EU country or the having concluded an agreement with France
  • You have been permanently resident in France for at least 2 years.

The sale must take place no later than December 31 of the 10the year following the year of the transfer of your tax domicile outside France.

However, no deadline is imposed if you have the free disposition of the accommodation at least since the 1ster January of the year preceding the year of sale.

This benefit is granted within the limit of one residence per taxpayer.

If you are a non-resident, you must designate a tax representative as soon as your capital gain is subject to tax.

Your representative must be accredited by the tax authorities and present financial guarantees.

You are exempt from tax representative in the following cases:

  • You are a national of a country of the - or the - having concluded an agreement with France
  • The price of the sale does not exceed €150,000
  • Your capital gain is exempt from income tax and social security contributions, taking into account the holding period of the property.

Buyer-related exemptions

You are exempt in the following cases:

You benefit from a exemption if you have any of the following:

  • Property sold directly or indirectly to a social housing organization (until December 31, 2027)
  • Well sold to a private operator who undertakes to realize or complete social housing (until December 31, 2027)
  • Property expropriated provided that the entire compensation is used for the acquisition, construction, reconstruction or expansion of one or more buildings within 12 months
  • Assigned property by an individual who exercised his right of abandonment under certain conditions, if it uses the entire sale price for the acquisition, construction, reconstruction or expansion of one or more buildings within 12 months.

Please note

In tense areas (Aa, A and B1), the exemption is also granted, subject to conditions, if the property is sold for use in the intermediate housing. A simulator allows to know the area of the property concerned:

Know the area of your municipality: A, Abis, B1, B2 or C

You must calculate the difference between the following amounts:

  • Sale price of the property
  • Purchase price of the property.

You get the (gross) gain if you make a gain.

If you realize a capital loss, that is, a loss, you can deduct it from a capital gain realized on the sale of another property only on an exceptional basis.

For example: bulk sale of a property acquired by successive fractions.

Selling Price

The selling price is the price indicated in the deed of sale.

You can deduct from the price, on supporting documents, the fees paid at the time of sale (for example, fees related to mandatory diagnostics).

The sale price must be increased by the amounts paid to you (for example, an eviction indemnity paid by the buyer to the tenant in place).

Acquisition price

The rules differ depending on whether the property was purchased or received free of charge:

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Property purchased

If you bought the property, the purchase price is the one you actually paid and which is indicated in the deed of acquisition.

This price can be increased, on proof (or flat rate), by the following costs:

  • Expenses and allowances paid to the seller at purchase (for their actual amount)
  • Acquisition fees (registration fees, notary fees) for their actual amount justified or for a lump sum of 7.5% of the purchase price
  • Works expenditure (building, reconstruction, expansion, upgrading) subject to conditions for their actual justified amount or for a fixed price 15% the purchase price, if the property has been held for more than 5 years
  • Road, network and distribution costs (e.g. development costs for subdivisions).

Property received free of charge

If you have received the property by gift or inheritance, the purchase price corresponds to the value used for the calculation of gift or inheritance tax.

Please note

If you have rented the property in furnished as a non-professional rental, depreciation that you may have deducted is reinstated in the purchase price, under certain conditions (for sales made since February 15, 2025).

Abatement for length of detention

The added value is reduced by one abatement which depends on how long you have owned the property.

The plate is different for the calculation of income tax and for the calculation of social security contributions.

Tableau - Discount rate for the sale of real estate

Duration of detention

Rate of abatement per year of detention

Income tax base

Tax base for social levies

Up to 5 years

0%

0%

From the 6e to 21e year

6%

1.65%

22e year gone

4%

1.6%

Beyond 22e year

Exemption

9%

Beyond 30e year

Exemption

Exemption

Example :

You sold a property that you had since 10 years. With this sale, you have realized a capital gain of €10,000.

  • You benefit from a tax allowance from 6% per year of the 6e to 10e year, or 30% (6% x 5).
    So you have a rebate of €10,000 x 30%, or €3,000. You will therefore declare an income of €7,000 (€10,000 - €3,000).
  • You benefit from a reduction in social security contributions from 1.65% per year of the 6e to 10e year, or 8.25% (1.65% x 5) .
    So you have a rebate of €10,000 x 8.25%, or €825. You will have to pay social levies on the basis of €9,175 (€10,000 - €825).

Example :

You sold a property that you had since 25 years. You have realized an added value of €10,000.

Your added value is exempt from income tax.

You benefit from a reduction in social security contributions from:

  • 1.65% per year of the 6e to 21e year, or 26.4% (1.65% x 16)
  • 1.6% for the 22nde year
  • 9% of the 23rde at 25e year, or 27% (9% x 3)

A total reduction of 55% (26.4% + 1.6% + 27%).

So you have a rebate of €10,000 x 55%, or €5,500.

You will have to pay social levies on the basis of €4,500 (€10,000 - €5,500).

Example :

You sold a property that you had since 30 years. With this sale, you have realized a capital gain of €10,000.

Your added value is exempt from income tax.

She's also exempt from social security contributions.

Exceptional allowances

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Allowance linked to operations of urban planning or revitalization of the territory or of national interest

An exceptional abatement of 70% shall apply, subject to conditions, in areas covered by a major urban planning operation, or by an operation for the revitalization of the territory, or of national interest.

The purchaser undertakes to demolish existing buildings to rebuild one or more collective housing buildings, under certain conditions.

Promise of sale must be signed between 1er January 2024 and December 31, 2027.

The allowance is applicable to determine the basis of assessment of income tax and social security contributions.

This allowance applies to the capital gain according to the duration of holding of the property.

It may be increased to 85% if social (or intermediate) housing represents at least 50% of the total surface area of the buildings.

The abatement does not apply if you sell the property to any of the following:

  • Spouse
  • Entered into a civil partnership Partner
  • Cohabiting partner
  • Ascendant (or your spouse's)
  • Descendant (or your spouse's).

The allowance also does not apply if you sell the property to a corporation of which you or your spouse (or an ascendant or descendant) are a partner or become a partner at the time of the sale.

FYI  

Building works must be completed in a 4 years from the date of acquisition.

Exceptional abatement in a tense area

An exceptional abatement of 60% applies in zones A, AA or B1.

The purchaser must undertake to demolish existing buildings to rebuild one or more collective dwelling buildings, under certain conditions.

Promise of sale must be signed between 1er January 2024 and December 31, 2027.

To find out if the accommodation is located in zone A, A bis or B, you can use the following online service:

Know the area of your municipality: A, Abis, B1, B2 or C

The allowance is applicable to determine the basis of assessment of income tax and social security contributions.

This allowance applies to the capital gain according to the duration of holding of the property.

It may be increased to 85% if social housing represents at least 50% of the total surface area of the buildings.

The abatement does not apply if you sell the property to any of the following:

  • Spouse
  • Entered into a civil partnership Partner
  • Cohabiting partner
  • Ascendant (or your spouse's)
  • Descendant (or your spouse's).

The allowance also does not apply if you sell the property to a corporation of which you or your spouse (or an ascendant or descendant) is a partner or becomes a partner on the sale.

FYI  

Building works must be completed within 4 years from the date of acquisition.

On your capital gain, you must pay a flat-rate tax and social levies.

You can estimate the amount to be paid with the simulator next:

Estimate the amount of taxes payable on a real estate capital gain

Income tax

The capital gain on real estate, after deduction of the allowance(s), is taxed at the rate of 19%.

Example :

For a taxable capital gain of €20,000, the income tax is €3,800 (€20,000 x 19%).

An additional tax applies in case of taxable capital gain greater than €50,000.

The rate varies from 2% à 6% according to the amount of the capital gain realized.

Form No. 2048-IMM-SD contains a table to establish the amount (in practice, it is calculated by the notary).

The tax does not apply to exempt sales or sales of building land.

FYI  

You can consult examples of calculation of real estate capital gains on the tax administration information leaflet and on the website impots.gouv.fr.

Social levies

You must pay social security contributions at the rate of 17.2%.

Example :

For a taxable capital gain of €20,000, social security contributions are €3,440 (€20,000 x 17.2%).

With income tax, the total levy will therefore be €7,240 €3,800 + €3,440).

Please note

If you are a non-resident, international tax convention may lay down different rules.

Formalities carried out by the notary

The notary in charge of the sale carries out the following operations:

  • Approaches to the tax authorities
  • Calculation of the taxable capital gain and the amount of tax payable
  • Preparation of the declaration
  • Payment of the tax on the real estate capital gain to the real estate advertising services of the location of the property.

Indication of the capital gain on your tax return

You must include the following information on your tax return:

  • Amount of the capital gain declared by the notary
  • Amount of capital gain exempt in case of 1re transfer of a dwelling other than your primary residence, if necessary.

The declaration of income via the internet is mandatory if your main residence has internet access and you are able to file your declaration online.

The 2026 return of 2025 income is complete.

The 2027 2026 tax return will begin in April 2027.

The 2026 return of 2025 income is complete.

The 2027 2026 income tax return will begin in april 2027.

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