Capital gains on property:
what you will pay when you sell
“The best capital gain is the one you planned for at the time of purchase.”
Good news first: the sale of your primary residence is exempt from capital gains tax. For a second home or a rental property, however, the gain is subject to income tax at 19%, plus social charges.
This tax decreases over time thanks to holding-period allowances: the exemption is total after 22 years for income tax and after 30 years for social charges. A surcharge also applies to gains above €50,000.
The purchase price taken into account can be increased by: acquisition costs (actual or a 7.5% apartment rate) and work (actual or a 15% apartment rate after five years of ownership). Keeping your invoices can therefore significantly reduce the tax.
Points to check before selling:
- The status of the property on the day of sale (primary residence or not)
- The exact holding period
- Invoices for work and acquisition costs
- The tax regime for furnished rentals (LMNP)
We model the net amount you will receive after tax with you, and refer you to our network of notaries and CPAs for complex situations.
About the author
Walid Fourhal Founder of Horizons Immobilier
Walid advises sellers, buyers and investors in Paris and Île-de-France, from the initial valuation through to closing at the notary’s office, in both French and English. He holds the French real estate license “Transactions sur immeubles et fonds de commerce” no. CPI 9201 2025 000 000 047, issued by the CCI Paris Île-de-France.
