Capital gains tax exemption for non-residents: former main residence and a limit of €150,000

A non-resident who sells property in France benefits from two exemptions, according to impots.gouv.fr. The first is total and applies to the former main residence: the sale must take place no later than December 31st of the year following departure from France, and the property must not have been made available to a third party in the meantime. The second is capped at €150,000 of net taxable capital gain, for a single property, and is reserved for certain EU or EEA nationals. These exemptions cannot be combined. Without an exemption, the capital gain is taxed at 19% of the standard tax rate (%), plus 17.2% of the standard tax rate (%) in social security contributions for a person who is not affiliated with an EEA or Swiss social security scheme (see below).

This page deals with the sale of a property by a non-resident individual. It does not address social security contributions for individuals affiliated with a social security scheme in the EEA or Switzerland, the effects of tax treaties, or the share of each co-owner. For these points, the rules depend on your specific situation; you should verify this before making a decision.

The two exemptions in one table

Sources: impots.gouv.fr (FAQ modified on 05/07/2022 and page «Capital gains on real estate»), BOFiP BOI-RFPI-PVINR-10-20 (version of 19/04/2019) and BOI-RFPI-PVI-10-40-50.

Exemption for the former main residence

It applies to transfers since January 1, 2019 (BOFiP, BOI-RFPI-PVINR-10-20). Four cumulative conditions:

1. The property was the transferor's habitual and effective residence on the date of the transfer of his tax domicile. Properties that are rented, occupied free of charge or that have become vacant on that date are excluded, according to the BOFiP (§ 510), which however provides for some relaxations not detailed here.
2. The new residence is in the EU, or in a State that has concluded with France the required administrative assistance and debt recovery agreements., and which is not a non-cooperative state.
3. The sale takes place no later than December 31 of the year following the transfer. The BOFiP specifies that the transfer date used is that of the signing of the authentic deed of purchase.
4. The property has not been made available to a third party, whether free of charge or for a fee, between the transfer and the assignment.

A departure in June 2026 therefore leaves until December 31, 2027, to sell. This exemption excludes the €150,000 exemption (impots.gouv.fr). The BOFiP (Official Bulletin of Public Finances) also addresses immediate and necessary outbuildings sold with the property: this page does not detail this point.

The €150,000 exemption: the conditions

Who can benefit from it?

According to impots.gouv.fr, the transferor must be a national of a European Union member state or another state party to the Agreement on the European Economic Area that has concluded an administrative assistance agreement with France. Check your nationality against the text before relying on this exemption.

Civil servants and agents of the State, local authorities or the hospital public service posted abroad, who are tax residents in France, can also benefit from it (impots.gouv.fr).

Two years of tax residence in France

The BOFiP (French Official Tax Bulletin) requires that the seller "must have been continuously tax resident in France for at least two years" at some point before the sale. The FAQ specifies that proof can be provided by any means, for example, by producing the property tax assessments for the seller's primary residence for the two years in question.

The timeframe: ten years since 2019

The sale must take place no later than December 31st of the tenth year following the transfer of tax residence outside of France. For sales prior to January 1, 2019, this was the fifth year (impots.gouv.fr). The BOFiP (Official Bulletin of Public Finances) published an update on April 19, 2019 (ACTU-2019-00094) indicating that Article 43 of the 2019 Finance Law (Law of December 28, 2018) amended this deadline, extending the period following the transfer of residence from 5 to 10 years. The BOI-RFPI-PVI-10-40-50 document, the available version of which is dated June 6, 2014, still mentions the fifth year: this should be verified with the BOFiP.

There is no time limit if the transferor has had free disposal of the property since at least January 1st of the year preceding the sale.

A residence, €150,000, and no company

The exemption applies "limited to one residence per taxpayer and €150,000 of net taxable capital gain" (BOFiP). The portion of capital gain exceeding €150,000 is taxed normally (impots.gouv.fr).

It does not apply when the property is held through a legal entity, for example a SCI (impots.gouv.fr).

Without exemption: the rates

According to impots.gouv.fr and service-public.gouv.fr (verified on 15/04/2026), capital gains for non-residents are subject to a flat tax of 19% (%), plus 17.2% (%) in social security contributions at the overall rate indicated for individuals not affiliated with a social security scheme in the EEA or Switzerland. The tax is paid by the notary upon sale (impots.gouv.fr, 27/01/2026). For individuals affiliated with a social security scheme in the EEA or Switzerland, impots.gouv.fr indicates an exemption from CSG and CRDS contributions and a separate solidarity levy; the rate and conditions should be verified with the relevant authority, and this page does not specify them.

Capital gains tax exemption for a non-resident: numerical example (fictitious profile)

Situation. An EU citizen, who has been living abroad for six years after being domiciled in France for more than two years, sells an apartment located in France, which she owned directly. The net taxable capital gain is known: the calculation starts with this amount (assuming a hypothetical profile). She compares four capital gain amounts: €120,000, €150,000, €180,000, and €250,000.

Issue. What remains to be taxed at 19 % beyond the exemption?

Strategy. Apply the €150,000 cap on net taxable capital gains, then the 19 % levy on the portion that exceeds it.

Result.

The calculation only considers the 19 % levy. It does not calculate social security contributions on the taxable portion: the way these apply to the exemption is not detailed in the sources consulted. It also ignores the tax on high capital gains and selling costs. This profile is fictitious. The figures illustrate the calculation and do not reflect your specific situation.

Capital gains tax exemption for non-residents: what changes depending on your situation

• Your nationality, with regard to the scope of the exemption of €150,000.
• The date of your departure from France, which sets the deadlines (the following year or the tenth year).
• The use of the property since your departure : made available to a third party or not, free disposal or not.
• The way to hold the asset : directly or through a company, which excludes the €150,000 exemption.
• The number of properties that you own in France: only one residence is exempt per taxpayer.
• Your social security scheme, which can modify social security contributions.
• The sale price, your country of residence, and whether or not capital gains tax is exempt., which mandate the appointment of a tax representative (see dedicated page).

The rule depends on your situation. No results are guaranteed.