Capital gains on real estate for resident individuals: calculation, allowances and exemptions in 2026

Capital gains realized from the sale of real estate are subject to income tax of 19% (1.3 times 1.3 times the standard allowance) and social security contributions of 17.2% (1.3 times the standard allowance). The 2026 increase in the CSG (General Social Contribution) does not affect capital gains. Allowances for holding periods begin after the fifth year: capital gains are exempt from income tax after 22 years of ownership and from social security contributions after 30 years. The sale of a primary residence is exempt. The notary calculates and pays the tax upon filing the deed with the land registry.

This page deals with individuals residing in France who are selling real estate. It does not cover non-residents, building plots, the transfer of company shares, or special cases. These situations are not detailed here.

The rates: 19 % and 17.2 %

Without any deduction, the two combined rates represent 36.2 % of the capital gain.

The 2026 Social Security Financing Act (Law of December 30, 2025, Article 12) increases the CSG (General Social Contribution) from 9.2% to 10.6% in general, bringing the total social security contributions to 18.6%. Capital gains on real estate, like rental income and assurance-vie, remain subject to 9.2% CSG, for a total of 17.2%.

Step 1: Acquisition price and packages

Two packages can increase the purchase price, without justification:

• Acquisition costs: 7.5 % of the acquisition price.
• Works: 15 % of the purchase price, This applies if you have owned a building for more than five years. It is an option that does not apply to vacant land.

Step 2: The reduction for length of ownership

The duration is calculated in twelve-month periods from the date of acquisition (the date of the deed for a purchase) until the event that triggers taxation.

The cumulative allowances reach 100 % for income tax at age 22 (16 years at 6 %, plus 4 %), and 100 % for social security contributions at age 30.

Step 3: The tax on high capital gains

An additional tax applies if the taxable capital gain exceeds €50,000. Its rate varies from 2 to 6 times 1. It does not apply to exempt sales or building plots.

The threshold is assessed after the allowance for holding period and after other applicable allowances and exemptions, including the exceptional allowance under Article 150 VE of the French General Tax Code (CGI), which is not discussed here. It is assessed individually: on the share of each joint owner, each spouse for jointly owned property, and each civil partner.

The tax scale applies to the total amount of the taxable capital gain, from the first euro. The transitional brackets include a smoothing formula:

Exemptions

The BOFiP lists eleven exemptions in total. This page details four of them.

• The main residence. Capital gains are exempt if the property is your main residence, meaning the dwelling where you usually live for most of the year. Temporary use is not sufficient. According to the BOFiP (French Official Tax Bulletin), in normal economic conditions, a period of one year between moving out of the property and selling it is generally considered the maximum period: this is a question of fact. Immediate and necessary outbuildings sold at the same time are exempt if they form an inseparable part of the residence. For a garage located less than one kilometer from the main residence or a maid's room in the same building, the BOFiP does not rule out the concept of an outbuilding. This is a rebuttable presumption, subject to evidence to the contrary: the point is a question of fact.
• The first sale of a property other than the main residence. You must not have owned your primary residence, directly or indirectly, in the four years preceding the sale. You must reinvest all or part of the proceeds, within 24 months, in the purchase or construction of your primary residence. The exemption is proportional to the portion of the proceeds reinvested. It applies at the seller's request, through a clause included in the deed of sale. It is only available once per person since February 1, 2012.
• Sales of €15,000 or less. Capital gains are exempt if the sale price is less than or equal to €15,000. The threshold is assessed per property, in full ownership, and per share for each co-owner.
• The length of detention, described above: 22 years for income tax, 30 years for social security contributions.

Capital loss, notary and tax return

A capital loss on real estate cannot be offset by capital gains of the same nature. It is not deductible from overall income. Exceptions exist: these are provided for in tax doctrine (BOFiP) and are not detailed here.

The notary calculates the taxable capital gain and the tax due, prepares the tax return, and pays the tax to the land registry office when the deed is filed, i.e., when the application for registration is submitted. Without a tax return and payment, the filing is refused. The tax return must be filed within one month of the date of the deed. For transfers occurring on or after February 21, 2026, the relevant information sheet is form 2048-IMM-NOT-SD, published in May 2026.

The following year, the capital gain already taxed by the notary is carried forward to box 3VZ of the supplementary declaration 2042-C. It counts towards the reference tax income, without further taxation.

Numerical example (fictitious profile)

Situation. Hélène and Paul, French tax residents, are selling an apartment they rent out. It is not their primary residence. The gross capital gain is €100,000 (hypothetical scenario). No fixed fees or other expenses are taken into account. They are comparing two sale dates: after 12 years of ownership, or after 23 years.

Issue. Does the tax depend on the date of the sale?

Strategy. Apply, for each holding period, the allowances, the rates of 19 % and 17.2 % and the tax on high capital gains.

Result.

After 12 years, the taxable capital gain of €58,000 exceeds €50,000: the tax applies (2 % × 58,000 − 2,000 × 1/20 = €1,060).

These profiles are fictitious. The calculation compares two dates: it does not take into account price changes, taxes on rental income received between the two dates, or transfer costs. The figures are not indicative of your specific situation.

What changes depending on your situation

• The nature of the property : main residence, other dwelling, building plot (not covered here).
• The date of the deed of acquisition, which determines the length of detention.
• Each owner's share : the €50,000 threshold for the tax is assessed per person.
• A possible reuse in your main residence, for the first transfer.
• A furnished property rented under the actual expense regime For sales completed on or after February 15, 2025, the depreciation deducted will be added back to the capital gains calculation. Certain properties in serviced residences are not affected.

No results are promised.