Property abroad
Whether you are selling property abroad as a French tax resident or selling property in France as a non-resident, we can assess your capital gains tax liability and guide you through the related French tax obligations.
French tax resident
If you are a French tax resident and sell a property located outside France, the tax consequences can be more complex than you might expect.
Under most tax treaties, capital gains arising from the sale of real estate are taxable in the country where the property is located. However, as a French tax resident, you must also report the sale in France and calculate the capital gain in accordance with French tax rules.
If the French calculation results in a taxable capital gain, Form 2048-IMM must generally be completed and submitted to the French tax authorities. The capital gain must also be reported on Form 2047 as part of your annual French income tax return.
Depending on the provisions of the applicable tax treaty between France and the country where the property is located, any tax paid abroad may, in many cases, give rise to relief from double taxation in France, such as a foreign tax credit or another treaty mechanism.
As you can see, the rules are complex and each situation is unique.
We are here to guide you through these complexities, ensure your reporting obligations are met, and help you benefit from the tax relief available under the applicable treaty.
Contact us for a personalised review of your situation.
Non residents selling property in France
If you live abroad and are selling property in France, you may be liable for French capital gains tax.
The amount of capital gains tax may be reduced or eliminated through:
- Allowances based on the length of ownership;
- The deduction of eligible acquisition and improvement costs;
- A full exemption for the sale of a former principal residence in France by certain non-residents, where the statutory conditions are met;
- A partial exemption of up to €150,000 of taxable capital gain for certain former French tax residents, subject to the conditions laid down by French tax law.
Every situation is different. We will review your circumstances, calculate your capital gain under French tax rules, identify any available exemptions or reliefs.
In France, the sale of real estate is handled by a notary, who is responsible for overseeing the legal formalities, collecting the applicable taxes, and completing the registration process. If required, we would be pleased to recommend an English-speaking notary.
Did you know ?
As a French tax resident, you are generally required to report your worldwide income. However, under the provisions of the applicable international tax treaty, some foreign-source income may not be taxable in France, even though it must still be declared on your French tax return.
The applicable tax treaty between France and the country from which your income arises determines how double taxation is avoided.
Understanding these rules can be complex. We are here to determine which treaty applies to your situation and ensure that the correct tax treatment is applied to your French tax return.
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We offer tax assessments to help estimate your potential tax liability in France. You can request a personalised quote through our online form.
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