Generally, in France, non-primary residence capital gains are taxed. The capital gains tax rate is 19% for all, with an additional “prelevements sociaux” of 17.2% for French tax residents and 15.5% for non-residents.
If you own a second home in France which you rent out and receive an income for, you will be obliged to complete a French tax return, whether you are a resident or not.
Land Tax/Taxe foncière
The French taxe foncière is an annual property ownership tax which is payable in October every year. It is payable by the individual who owns the property on the 1st January of the same year and is applicable whether you live in your property or rent it out.
Property capital gains tax is due, where applicable, on all second homes – but not main homes – in France. It makes no difference whether the owner lives in France (in another property) or abroad, and the relief for length of ownership is the same in both scenarios.
312-2 of the Code on the Entry and Residence of Foreigners and the Right of Asylum) that “Any foreign national who owns a secondary residence in France may apply for a very long-stay visa authorizing him or her to stay on French territory for a period not exceeding six months per year.
Fees and taxes
There are no restrictions for foreign investors buying a house in France, even non-residents. All investors need is a French bank account and a valid ID.
As a traveller to France, you can, of course, bring your personal items and belongings with you, and no taxes or duties will be due for any items deemed reasonable items for a traveller to bring on a trip.
The longer the property has been held, the lower the tax. Each year of ownership reduces the taxation on the capital gains: After 22 years the property is able to be deducted from income tax. After 30 years the property becomes exempt from any tax on the capital gains.
When you sell a home in France, you'll need to pay capital gains tax. Known as impôt sur les plus values in France, this is due to the profits of selling a property or land. It's made up of a flat income tax rate of 19%, plus an extra 17.2% in social charges.
Members of the Second Estate did not have to pay any taxes. They were also awarded special priviliges, such as the wearing a sword and hunting. Like the clergy, they also collected taxes from the Third Estate.
Taxe foncière is a land tax, and is paid by the owner of the property regardless of whether they occupy the property or whether the property is a second home or primary residence. Taxe d'habitation is a residence tax.
The First and Second Estates were exempted from most taxes. The Third Estate retained the burden of producing the wealth for the two privileged Estates and also the responsibility of paying nearly all of the taxes.
For second-home owners, the form can be filled out in the same way as for those whose main home is in France. Here is how: Go to impots.gouv.fr and log in to your account via votre espace particulier at the top of the page. If you do not have an account at the website you can apply for one at this link.
To avoid double taxation, when this income has been taxed under the terms of a treaty in the country or territory from which it originates, the tax paid outside France is not deductible from income but provides entitlement to a tax credit that may be deducted from French tax.
Capital gains taxes in France
As always in France, you have two sets of tax to pay: capital gains tax and social charges. The standard capital gains tax rate on the sale of real estate is 19%. Progressive surcharges are added for gains over €50,000, starting at 2% and rising to 6% for gains over €260,000.
A reduced social charges rate of 7.5% (instead of 17.2%) generally applies to EU taxpayers selling French real estate at a profit. This is mainly due to the provisions of the EU Regulation on the coordination of social security systems.
Once you have bought your dream home in France If you would like to relocate to France or visit for longer than 90 days you will require a visa, which is easy to obtain once you are the owner of a French property. You may wish to apply for a Long stay visa valid for residence (VLS-TS).
When selling your French property, it is necessary to use a French notaire. Only notaires are able to carry out the transfer of property from one party to another. The good news for the seller is that the purchaser is responsible for the notaire's fees.
When the net value of taxable assets exceeds 1.3 million euros, the wealth tax (ISI) is calculated using a progressive schedule, which is the same as for the old solidarity wealth tax (ISF). Solidarity tax on wealth (ISF). It is made up of six tax brackets with rates ranging from 0 to 1.5% apply.
Key Takeaways. You can sell your primary residence and be exempt from capital gains taxes on the first $250,000 if you are single and $500,000 if married filing jointly.
Tax will be taken at 19% with a further 17.2% (or 7.5%, if applicable) in social charges. There are allowances applied for the period of ownership, thus the weight of tax reduces over time, avoiding real estate capital gains tax after 22 years and social charges after 30 years.
You cannot take meat, milk or products containing them into EU countries. There are some exceptions for medical reasons, for example certain amounts of powdered infant milk, infant food, or pet food required for medical reasons. Check the rules about taking food and drink into the EU on the European Commission website.
Purchasing a property in France does not automatically grant non-EU citizens permanent residency. They must apply for a long-term visa or residence permit, fulfilling requirements such as proving sufficient financial resources and having health insurance coverage.
You'll need to prove that you are financially able to live in France – a pension statement will suffice, bank statements showing savings etc. You must have a suitable healthcare plan – as we said earlier, it is not free in France but they do have an excellent record of healthcare.