French Capital Gains Tax: Frequently Asked Questions

French Capital Gains Tax, French tax representative

Frequently Asked Questions

I had some extension works in my property but I did not keep all of my invoices. What can I do?

The Tax Administration will not accept the deduction of the works for which you cannot provide evidence (invoices and payment). Thus, you will only be able to deduct the works for which you can prove the expenses.
If you have owned the property for at least 5 years, you automatically benefit from an allowance of 15 % on the acquisition price against improvement works (instead of the detailed calculation of deductible works).

I am a non resident and I will make no capital gains.
Do I have to appoint a tax representative ?

As a non resident natural person, you have the obligation to appoint a tax representative when selling your French property.
There are two exemptions to which you can aspire :
- You have owned the property for more than 30 years
- You are selling your property for less than 150,000 euro.

I have just moved to France and so just became a French tax resident. I plan on selling a property in the UK that was rented out. Will the capital gains from the sale of my UK property be taxed in France as i am now a French tax resident ?

If you intend to sell a UK property and if you are a French tax resident, you will be taxed for CGT only in UK and not in France. You will have no social charges to pay in France either.
This is settled by the tax agreement between France and the UK to avoid double taxation.
The same rule applies to a UK resident selling a French property : the CG will only be taxed in France.

I am a retired non resident and i get a small pension. Can i benefit from a tax exemption on the CGT ?

The sale of an asset held by a non resident entitled to a pension is exempted if he is citizen of one of the EU member States + Iceland and Norway. The exemption also applies to the citizens of other states who can mention the non discriminating clause and who are in a situation similar to the one of a French citizen. This exemption is valid provided that the following 2 conditions apply (from year Y-1 to year Y of the transfer) : - this citizen does not pay wealth tax (ISF in French) ; - his annual threshold is inferior to a certain limit (art 1417 I of the French tax code ie for 2010, €9837 for the first "part" of the household increased by €2627 for every additional "1/2 part").

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