Tax regulations<br><br>Sale price of real estate in France: taxes, fees, and overview - FrenchEntrée Tax regulations

If you have a second home in France, especially if you are not a resident of France, there may be additional costs and fees when selling your property. Here are some of the most important expenses to consider.

Capital gains tax

If you are selling property in France, you will have to pay French capital gains tax if:

• You are selling a second home, property, or land that is not your primary residence.
• You have owned the property for less than 22 years (or less than 30 years for applicable social contributions).
• You are selling your property or land for an amount over 15,000 euros.

In France, capital gains are subject to both capital gains tax (impôt sur les plus values) at a rate of 19% and social contributions (contributions sociales) at a rate of 17.2% - totaling 36.2%. There are also benefits related to the duration of ownership.

Non-residents are also required to pay French capital gains tax and social contributions, although the amount of social contributions will depend on your country of residence.

Hiring a fiscal representative

If you are a resident of a country that is not part of the EU or EEA (for example, the USA or the UK), there is a legal requirement in France to appoint a fiscal representative when selling property in France. This rule applies to any property sold for an amount exceeding 150,000 euros, and there are very few exceptions - generally speaking, if your property is subject to capital gains tax, you will also need to appoint a fiscal representative.

It is important to note that a fiscal representative is required in addition to a notary, and unlike the notary, the costs associated with the fiscal representative are borne by the seller. These costs can range from 0.4% to 1% of the property sale price and will be deducted from your capital gains.

Currency conversion

If you are selling French property from a non-EU country and plan to exchange euros back into pounds, dollars, or another currency, it is just as important to consider currency conversion as it was when purchasing the property.

Currency exchange rates fluctuate, and of course, you need to consider transfer fees when selling your property.

Our advice is to contact a currency trading specialist, such as our partners at Moneycorp, before listing your property for sale. They can not only save you hundreds of euros when transferring funds from France, but also explain the various options for protecting against exchange rate fluctuations and minimizing the associated transfer fees.

Translation and legal expenses

The last thing to consider is that as a foreign seller, you may need to appoint an English-speaking legal representative or consult with a French legal or tax specialist. You may also require the services of a professional translator to translate legal documents and contracts (which will be in French) into English. Our FrenchEntrée directory contains listings of English-speaking professionals in all these areas, and it is advisable to schedule a meeting before putting your property up for sale.