Is the sale of real estate subject to real estate VAT?

Verified 10 April 2026 - Public Service / Directorate of Legal and Administrative Information (Prime Minister)

The sale ofa new property ora building plot by a professional salesman is subject to VAT real estate. It's a tax collected by the state. It applies to sales of goods and services located in France. We explain the information to know.

The person liable for the VAT real estate is, in principle, professional salesman. For example, a property dealer, a developer or a developer.

FYI

By exception, VAT is due by the purchaser where the following two conditions are met:

The seller is a professional subject to VAT, but it is located abroad (outside France)
The buyer is himself a trader, subject to VAT.

The VAT real estate is due on the occasion of the sale by a professional of real estate new or building land.

Sale of a new property

A property (a single-family home, residential, office, agricultural or commercial property) is considered new when it is completed for up to 5 years.

This concerns:

The new constructions (recently built houses or buildings)
Existing buildings that have been the subject of a elevation
Existing buildings in which works which have returned to new condition the majority of the foundations, or the majority of the elements outside the foundations determining the strength and rigidity of the structure, or the majority of the consistency of the facades outside the renovation, or 2/3 of each of the secondary elements (floors not determining the strength or rigidity of the structure, exterior frames, interior partitions, sanitary and plumbing installations, electrical installations and, for the construction of the metropolis only, heating system).

The qualification of new building is acquired at the completion of the work for construction, elevation or refurbishment, and shall be kept for 5 years from that completion.

Sale of a building plot

A plot of land is considered to be building land when it is possible to build a building on it. The construction must be authorized by the local urban planning document (local urban plan, municipal map...).

The following transactions are exempt from VAT real estate:

Sales of old dwellings: a dwelling is considered old if it has been built for more than 5 years or if it has not undergone elevation work or has been restored to new condition
Sales made by individuals, regardless of the nature of the transaction (sale of building land, new or old housing)
Sales of real estate for a symbolic price, i.e. a price that is derisory compared to the real value of the property (this is for example the case if you sell for €1 real estate that is actually worth it €200,000)
Mutations free of charge (donation, succession), shared outright, buns of division of succession or of conjugal community.

Companies subject to actual regime normal taxation must declare every month the amount of real estate sales made and the amount of transactions subject to VAT. The real estate VAT due is paid monthly.

FYI

Where the annual amount of VAT real estate payable is less than €4,000, it is possible to declare it every calendar quarter.

This process is carried out by connecting to theprofessional area on the website www.impots.gouv.fr, then selecting the services “Declare – VAT” or “Pay – VAT”.

For more information, it is possible to contact the tax information service.

Who shall I contact

By phone:
0809 401 401
Monday to Friday from 8:30 am to 7 pm, excluding public holidays.
Free service + price call

The rate of VAT real estate in the event of the sale of a new property or a building plot varies according to their nature and situation:

Tableau - Rate of VAT depending on the nature and situation of the dwelling
Sectors or premises concerned	Tto VAT
New housing: general case	20%
New housing in Corsica	5.5%
Social rental housing financed by a rental loan assisted by integration. Tenants benefit from personalized housing assistance (APL).	5.5%
Social rental housing financed by a social rental loan and covered by the urban renewal policy. Tenants benefit from the APL.	5.5%
Other social rental housing whose tenants benefit from the APL	10%
Premises subject to a acquisition-enhancement financed by an assisted rental integration loan (PLAi) or a social rental loan (PLUS) or a social rental loan (PLS)	5.5%
Social housing where the work carried out made the building in new condition	5.5%
Housing treated as social rental housing	10%
Housing financed by social home ownership	10%
Intermediate dwelling whose rents are capped and below market prices. They are subject to resource requirements	10%
Social and medico-social institution	5.5%

Tableau - Rate of VAT depending on the nature and location of the building plot
Sectors or land concerned	Rate of VAT
Building land: general case	20%
Building land in Corsica	10%
Building land intended for the construction of premises subject to a taxable transaction at the reduced rate when the buyer attests to this destination in the deed of sale	10%