TL;DR;
Selling a villa in Saint-Tropez, a sea-view apartment in Cannes or a luxury property in Nice can generate a substantial capital gain. Before completing a sale, international property owners should understand how French capital gains tax works, which expenses may be deductible and how the length of ownership affects the final tax bill.
France applies specific tax rules to gains realised on the sale of French real estate, including property owned by non-residents. Although the standard income tax rate on taxable real estate capital gains is generally 19%, social levies and, in certain circumstances, an additional surcharge may also apply.
For international buyers considering a property on the Côte d’Azur, understanding these rules before purchasing can be an important part of long-term investment planning.
TL;DR: French Property Capital Gains Tax in 2026
French property capital gains tax depends on the taxable gain, the length of ownership and the seller’s individual circumstances. Here are the main points international property owners should know.
- Standard income tax rate: 19% on the taxable real estate capital gain after applicable allowances.
- Standard social levies: 17.2%, subject to exemptions and special rules for eligible non-residents.
- After five years: Holding-period allowances generally begin from the sixth year of ownership.
- After 22 years: Full exemption from real estate capital gains income tax is generally available.
- After 30 years: Full exemption from standard social levies is generally available.
- Deductible expenses: Certain acquisition costs, qualifying renovation work and eligible sale expenses can reduce the taxable gain.
- Travel expenses: Flights, hotels and car rentals incurred while searching for a property are not automatically deductible.
- Principal residence: A qualifying principal residence may benefit from a full capital gains tax exemption.
- Non-residents: Special exemptions and fiscal representative requirements may apply.
- High capital gains: An additional surcharge may apply when the relevant taxable gain exceeds €50,000.
These are general rules. Your final liability depends on your tax residence, social security affiliation, ownership structure, acquisition date and the nature of the property.
1. How Is Capital Gains Tax Calculated in France?
French property capital gains tax, known as impôt sur la plus-value immobilière, generally applies when a property is sold for more than its adjusted acquisition cost.
The calculation is more detailed than simply subtracting the original purchase price from the sale price. French tax rules allow certain costs to be added to the acquisition price or deducted from the sale price, subject to specific conditions.
Understanding the taxable capital gain
The general calculation follows this principle:
Capital gain before holding-period allowances = Adjusted sale price − Adjusted acquisition price
The adjusted sale price may be reduced by eligible expenses connected with the sale. The acquisition price may be increased by qualifying acquisition costs and eligible renovation expenditure. The relevant holding-period allowances are then applied separately to the income tax and social levy calculations.
Example: Selling a French Riviera apartment
Imagine that you purchased a luxury apartment in Antibes for €800,000 and later sold it for €1,200,000.
- Original purchase price: €800,000
- Sale price: €1,200,000
- Initial capital gain before eligible adjustments: €400,000
This €400,000 is only the starting point. Eligible acquisition costs, qualifying renovation expenses, sale expenses and holding-period allowances may change the amount subject to tax.
This is why a detailed calculation should be prepared by your notaire before the sale is completed.
2. What Is the Capital Gains Tax Rate for Foreign Property Owners?
France generally applies a 19% income tax rate to taxable real estate capital gains, including gains realised by non-residents on French property.
However, the final amount payable is not necessarily 19% of the entire profit. Social levies, holding-period allowances, exemptions and possible additional taxation must also be considered.
Income tax and social levies
| Tax category | General rate |
|---|---|
| Real estate capital gains income tax | 19% |
| Standard social levies | 17.2% |
The combined headline rate is 36.2% before considering the applicable allowances, exemptions and any surcharge. It is not a universal effective rate for every seller.
Special rules for eligible non-residents
Certain non-residents affiliated with a compulsory social security system in an eligible European Economic Area country or Switzerland may benefit from an exemption from CSG and CRDS. A solidarity levy of 7.5% may nevertheless remain payable.
Specific eligibility conditions apply. The United Kingdom also has a particular treatment for eligible individuals affiliated with its social security system, despite Brexit.
Your tax residence and social security affiliation should therefore be checked separately before estimating your net sale proceeds.
Does nationality determine the tax rate?
Nationality alone does not determine the capital gains tax rate. French tax treatment depends on the applicable legislation and the seller’s circumstances rather than simply whether the owner is French, British, Dutch, Belgian, Swiss, American or from another country.
Tax residence, social security affiliation, ownership structure and eligibility for exemptions can affect the final amount payable.
Official source:
French tax authority: Capital gains on property.
3. Which Expenses Can Reduce Your Taxable Capital Gain?
One of the most important steps when preparing to sell a property on the French Riviera is to retain evidence of eligible expenses incurred when purchasing, improving and selling the property.
French tax rules allow certain costs to be included in the calculation. However, not every expense associated with owning a property is deductible.
Acquisition costs and notary fees
Eligible acquisition expenses may include notary fees, registration duties and other qualifying costs associated with purchasing the property.
Where the legal conditions are met, owners can generally choose between eligible actual acquisition costs supported by documentation and a standard allowance of 7.5% of the original purchase price.
The appropriate method depends on the transaction and the applicable rules.
Renovation and improvement work
Eligible expenditure on construction, reconstruction, extension or improvement may increase the acquisition price used in the calculation.
The rules distinguish qualifying work from routine maintenance, repairs and expenditure already accounted for elsewhere. The nature of the work, the property ownership period and the available documentation all matter.
For properties held for more than five years, a standard allowance of 15% of the acquisition price may be available for qualifying purposes, even if the actual expenditure cannot be justified, subject to the applicable conditions.
For substantial renovation projects, retain:
- Detailed invoices from contractors.
- Proof of payment.
- Contracts describing the work carried out.
- Supporting documents showing the nature and date of improvements.
For a luxury villa, significant renovation or extension costs can have an important effect on the eventual taxable gain.
Expenses associated with the sale
Certain costs directly connected with the sale may also be deductible where the law permits, provided they are eligible and properly documented.
Ask your notaire to identify which expenses qualify for your particular transaction.
Are flights, hotels and car rentals deductible?
Generally, travel expenses incurred while searching for a property, including flights, hotel stays and car rentals, are not automatically deductible from a French property capital gain.
This is an important distinction for international buyers who travel to the Côte d’Azur several times before finding the right home.
Do not assume that an expense is deductible simply because it was incurred in connection with the purchase. The rules are specific, and your notaire or French tax adviser should confirm the eligibility of any proposed deduction.
Keep your records organised
Maintain a secure digital archive containing your original purchase deed, notary statements, qualifying invoices, proof of payment and sale-related documents.
An organised record of your property investment can make the eventual sale process easier and help your professional advisers calculate the taxable gain accurately.
4. How Does the Length of Ownership Affect Capital Gains Tax?
France provides allowances based on the length of time a property has been owned. These allowances apply differently to income tax and social levies.
Allowances for income tax
| Ownership period | Annual allowance |
|---|---|
| Up to 5 years | 0% |
| Years 6 to 21 | 6% per year |
| Year 22 | 4% |
| After 22 years | Full income tax exemption generally applies |
Allowances for social levies
| Ownership period | Annual allowance |
|---|---|
| Up to 5 years | 0% |
| Years 6 to 21 | 1.65% per year |
| Year 22 | 1.60% |
| Years 23 to 30 | 9% per year |
| After 30 years | Full exemption from standard social levies generally applies |
These allowances reduce the relevant taxable capital gain. They should not be interpreted as direct percentage reductions in the total tax bill.
For example, owning a property for ten years does not mean that the tax rate simply falls from 19% to 13%. Instead, the applicable allowance reduces the portion of the gain subject to each category of taxation.
The exact ownership period and applicable rules should be confirmed by your notaire.
5. Are There Additional Taxes on Large Capital Gains?
Yes. An additional surcharge may apply to certain taxable real estate capital gains exceeding €50,000 after the relevant allowances.
The applicable rate depends on the amount of the taxable gain and the statutory calculation. The surcharge is progressive, generally ranging from 2% to 6%, and particular calculation rules apply in some cases.
Owners selling high-value villas, penthouses or waterfront properties should therefore consider the potential surcharge when estimating their net proceeds.
For a substantial transaction, request a detailed tax simulation from your notaire before accepting an offer or finalising the sale.
6. What Capital Gains Tax Exemptions May Be Available?
The French tax system provides several exemptions, although eligibility depends on the circumstances.
Sale of a principal residence
A qualifying principal residence is generally exempt from capital gains tax.
The property must meet the applicable conditions for principal-residence status. A second home, holiday apartment or investment property does not automatically qualify.
Special exemptions for non-residents
Some non-resident sellers may qualify for specific exemptions, including a potential exemption capped at €150,000 of net taxable capital gain under particular conditions.
Eligibility can depend on factors such as previous French tax residence, qualifying status, the date of departure from France, the date of sale and whether the property is held directly by an individual or through a company.
A separate exemption may be available when a former French principal residence is sold after the owner has moved abroad, subject to strict conditions and deadlines.
These provisions should not be assumed to apply to every international property owner.
Inherited properties and gifts
Where a property has been inherited or received as a gift, the acquisition value used in the capital gains calculation is generally based on the value established for the relevant inheritance or gift tax purposes, subject to the applicable rules.
Because these cases can involve additional legal and tax considerations, professional advice is particularly important.
7. What Should Non-Resident Sellers Know About a Fiscal Representative?
Certain non-resident sellers must appoint an accredited fiscal representative in France to handle aspects of the capital gains tax process.
The requirement depends on the seller’s circumstances and the applicable exemptions. Certain sellers established in the EU or qualifying EEA countries, sales of €150,000 or less per seller and sales benefiting from a full ownership-period exemption may fall within exemptions from this requirement, subject to the relevant rules.
A sale involving an overseas owner should therefore be reviewed early in the process, rather than immediately before completion.
Your notaire can explain whether a fiscal representative is required and identify the appropriate arrangements.
Official source:
French tax authority: Selling French property as a non-resident.
8. What Does Capital Gains Tax Mean for French Riviera Property Investors?
The French Riviera continues to attract international buyers seeking a second home, a lifestyle investment or a long-term real estate asset.
Locations such as Saint-Tropez, Cannes, Antibes, Nice, Beaulieu-sur-Mer and Villefranche-sur-Mer offer different property types and market characteristics, from contemporary sea-view apartments to private estates and waterfront villas.
When evaluating an acquisition, investors should look beyond the purchase price and potential rental income. The eventual resale value, transaction expenses, maintenance costs, taxation and length of ownership can all influence the overall investment outcome.
Plan for resale before you buy
Before purchasing a property, consider the following factors:
- Your expected ownership period.
- The likely resale market and potential selling costs.
- The cost of renovations and improvements.
- Whether the property will be a principal residence, second home or rental investment.
- How the property will be owned, including any company or shared ownership arrangement.
- The possible capital gains tax treatment when you eventually sell.
Rental income and capital gains are separate tax matters. Rental income may be subject to its own French tax and reporting rules, and furnished rental activity can have additional implications for the calculation of a future capital gain.
In particular, depreciation deducted under certain furnished rental regimes may affect the acquisition-cost calculation for sales made from 15 February 2025, subject to statutory exceptions. Owners who rent their property furnished should seek advice before relying on older capital gains calculations.
Is the French Riviera a good long-term investment?
A property investment should be evaluated on its individual merits. Exchange rates, rental demand, interest rates, operating costs, local market conditions and tax rules can all change.
A strong foreign currency may improve purchasing power at a particular moment, but it does not guarantee a profitable investment or a favourable resale outcome.
A well-located property, realistic financial projections and a clear understanding of the tax implications can help buyers make more informed decisions.
9. How Living on the Côte d’Azur Can Help
At Living on the Côte d’Azur, we assist international buyers exploring luxury real estate across the French Riviera and selected European destinations.
Whether you are looking for a contemporary apartment overlooking the Mediterranean, a family villa in a residential neighbourhood or an exceptional property for long-term ownership, understanding the purchase and resale process is an important part of making the right decision.
We can help you explore available properties and coordinate with relevant local professionals, including English-speaking notaires where appropriate, so you can obtain advice tailored to your circumstances.
Explore luxury properties with Living on the Côte d’Azur.
For advice on your specific capital gains tax liability, consult a French notaire or qualified tax adviser familiar with international property transactions.
10. Frequently Asked Questions: French Property Capital Gains Tax
What is the capital gains tax rate in France in 2026?
The standard income tax rate on taxable real estate capital gains is 19%. Standard social levies may also apply at 17.2%, subject to exemptions and special rules. Holding-period allowances affect the final calculation.
Do foreign property owners pay capital gains tax in France?
Generally, yes. Non-residents may be liable for French tax on gains from French real estate, subject to applicable exemptions and the rules governing their situation.
Is the tax rate the same for every nationality?
Nationality alone does not determine the rate. Tax residence, social security affiliation, ownership structure and eligibility for exemptions can affect the total amount payable.
How long must I own a property to be exempt from capital gains tax?
Full exemption from real estate capital gains income tax is generally available after 22 years of ownership. Full exemption from standard social levies is generally available after 30 years.
Does the tax decrease after five years?
Yes. Holding-period allowances generally begin after the fifth year. They reduce the taxable gain at different rates for income tax and social levies.
Can I deduct notary fees when selling a French property?
Eligible acquisition fees, including qualifying notary fees and registration duties, can generally be included in the acquisition cost. A standard allowance of 7.5% of the purchase price may be available instead, subject to the applicable conditions.
Can I deduct renovation costs?
Certain qualifying construction, reconstruction, extension and improvement costs can increase the acquisition cost for capital gains purposes. Supporting documentation and the applicable eligibility conditions are important.
Can I deduct flights and hotel stays when buying a property?
Generally, flights, hotel stays and car rentals incurred while searching for a property are not automatically deductible. Seek confirmation from your notaire before including any such costs in your calculation.
Is selling my principal residence tax-free?
A qualifying principal residence is generally exempt from capital gains tax. The property and sale must meet the relevant conditions.
Do non-residents have special exemptions?
Yes. Certain non-residents may qualify for specific exemptions, including an exemption capped at €150,000 of net taxable gain in eligible circumstances. Strict conditions apply.
Must a foreign seller appoint a fiscal representative?
Not always. The requirement depends on the seller’s residence, the sale price and applicable exemptions. Certain EU and qualifying EEA sellers may benefit from an exemption from this requirement.
Is there an additional tax on large property gains?
A surcharge may apply to certain taxable capital gains exceeding €50,000 after the applicable allowances. The amount depends on the statutory calculation.
Does renting out a French Riviera property affect capital gains tax?
It can. Rental income is taxed separately, and the applicable rental regime may affect the capital gains calculation. Furnished rental owners should obtain advice about depreciation and the rules applicable to their sale.
Does buying through a company change the tax treatment?
Yes, potentially. A property held directly by an individual may be subject to different rules from property held through a company, such as an SCI or another legal structure. The company’s tax regime and ownership arrangements matter.
Who calculates and pays the capital gains tax when I sell?
The notaire generally calculates the taxable gain, prepares the required declarations and arranges payment of the tax due as part of the sale process. More complex transactions may require additional tax advice.
Should I seek tax advice before purchasing a property?
Yes. Understanding the likely tax consequences of ownership, rental activity and eventual resale can help you compare properties and plan your investment more effectively.
Official Sources and Further Information
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