Plus-value immobilière is the French capital gains tax applied to profits realised when selling real estate. The taxable gain is calculated as the sale price minus the acquisition price, adjusted for allowable costs including notary fees, improvement works (with documentation), and a flat 7.5% allowance if you cannot prove actual acquisition costs.
The headline rate is 36.2% — comprising 19% income tax and 17.2% social charges (prélèvements sociaux). However, France applies a progressive abatement system that reduces the taxable gain the longer you hold the property. For income tax purposes, the gain is reduced by 6% per year from year six, reaching full exemption after 22 years. For social charges, the reduction is slower: 1.65% per year from years six to 21, 1.6% in year 22, then 9% per year, reaching full exemption after 30 years.
Non-EU residents, including UK nationals post-Brexit, face an additional complication: social charges may still apply at 17.2% even if they do not benefit from French social security. Since 2019, however, UK and non-EU residents who contribute to a social security system in their country of residence may claim an exemption from the solidarity levy portion of these charges, reducing the effective social charge rate to 7.5%.
The principal residence exemption (résidence principale) is the most powerful relief available: if the property is your primary home on the date of sale, the entire gain is exempt from plus-value tax, regardless of how long you have owned it. However, expats who have moved abroad often lose this exemption if they have already established tax residency elsewhere.
A surtax (taxe sur les plus-values élevées) applies to gains exceeding €50,000 — an additional 2–6% on top of the standard rate. High-value property sellers should factor this into their pre-sale calculations.
| Key Facts: Plus-Value Immobilière | |
|---|---|
| Standard rate | 19% income tax + 17.2% social charges = 36.2% total |
| Income tax exemption | Full exemption after 22 years of ownership |
| Social charge exemption | Full exemption after 30 years of ownership |
| Primary residence | Fully exempt — no plus-value tax if selling your main home |
| Surtax threshold | Gains over €50,000 attract an additional 2–6% levy |
Frequently Asked Questions
Do I pay plus-value tax if I reinvest in another French property?
No automatic rollover relief exists in France. Unlike some other countries, reinvesting proceeds does not defer or exempt the gain — you pay tax on the profit regardless of what you do with the money.
How is the notary fee allowance calculated when I have no receipts?
The tax authority allows a flat addition of 7.5% of the purchase price to cover acquisition costs if you cannot produce original invoices. This is lower than actual notary fees for most property purchases, so keep your original notaire invoice.
Can I offset losses on one French property against gains on another?
No. French plus-value immobilière cannot be offset against losses — each transaction is assessed individually. Losses on property sales are not deductible against gains or any other income.
This term is part of the AvökatFinder France Legal Glossary — plain-English definitions of French legal terms for expats and foreign nationals.