What Is a Capital Gain Tax in France?

If you sell a property or investment in France for more than you paid for it, the profit you make is called a capital gain. Simple, right? But in France, that gain is usually taxed — and that’s where things can get a little tricky.

There are two main types of capital gains:

• Real estate gains (when you sell a house, apartment, land, etc.)
• Movable property gains (like shares, securities, or valuable collectibles)

These two categories don’t follow the same tax rules. For example, selling your main residence is often tax-free, while selling a second home or investment property can trigger both income tax and social contributions.

If you’re a non-resident selling French property, you may also be required to appoint a tax representative — especially if:

• The sale price is over €150,000
• You’ve owned the property for less than 30 years
  (Even if there’s no actual gain!)

At FTO, we handle the capital gains calculation for you, explain everything clearly, and ensure your return is 100% compliant — with no surprises. We’re even responsible if there’s a tax audit later on.

Need to estimate your capital gains tax?

Try our free online CGT simulator and get a quick idea of what you might owe.

How Are Capital Gains Taxed in France?

For Real Estate (Property Sales)

If you sell French real estate (like a second home, investment property, or land), here’s what usually applies:

• 19% income tax, plus
• 17.2% in social contributions

That’s a combined tax rate of 36.2%

Note: For residents of the EU, EEA, Switzerland, or the UK, the social contributions may be replaced by a 7.5% solidarity levy instead. Learn more

But don’t panic — this is before deductions. France applies progressive allowances depending on how long you’ve owned the property:

So if you’ve held onto your property for over 30 years, there’s no capital gains tax at all.

Your main residence is also exempt — provided you meet all the conditions (you were living there at the time of sale, it wasn’t rented out, etc.).

UK resident? Learn more about French real estate capital gains for UK tax residents

For Shares and Other Financial Investments

If you sell shares, stocks, bonds, or other financial products, capital gains are taxed at a flat rate of 30%, known as the “Prélèvement Forfaitaire Unique (PFU)”, which includes:

• 12.8% income tax
• 17.2% social contributions

There’s no allowance for how long you’ve held the asset — but you might be able to offset losses or choose taxation at your progressive income tax rate if it’s more favorable.

Investing via a company? Check our guide on capital gains with a corporate tax company in France

For Cryptocurrency

Selling crypto? Occasional disposals are taxed at 30% flat, just like financial assets. But if you’re a regular trader, gains may be treated as professional income, taxed at higher rates.

And yes — crypto gains must be declared in France, even if they come from platforms based abroad.

Special Cases: Rental Business Status (LMNP / LMP)

• Are you selling a property under LMNP (Non-Professional Furnished Rental) status? Taxes apply under specific rules — here’s how it works
• If you’re under LMP (Professional Furnished Rental) status, the rules are different again — read more here

Important: The LMP status does not apply to non-French residents when it comes to capital gains tax. If you’re not a French tax resident, the special LMP regime cannot be used to reduce or avoid CGT on your sale.

Don’t let the numbers scare you. With the right planning — and a proper capital gains calculation — you can reduce or even eliminate what you owe. At FTO, we help you get it right from the start.

How to Calculate a Capital Gain in France

Calculating a capital gain in France isn’t as complicated as it might seem. At its core, it’s simply the difference between what you sold the property for and what it originally cost you — with a few adjustments allowed along the way.

To start, you take the sale price of the property — the amount the buyer paid. From that, you can subtract certain costs linked to the sale, like agency commissions or specific notary fees, as long as they were paid by the seller.

Then comes the acquisition price, which is what you paid when you bought the property. But that’s not just the purchase price. You can also include related expenses like notary fees and registration taxes. If you don’t have receipts, the French tax system allows you to apply a flat 7.5% increase on the purchase price to account for these costs. Likewise, if you’ve held the property for over five years, you can apply a flat 15% deduction to represent renovation works — or declare the actual amounts spent, provided you have proper documentation.

Let’s say you bought your property for €200,000, spent €20,000 on renovations, and later sold it for €300,000. Your gross capital gain, in this case, would be around €80,000.

The good news is that France rewards long-term ownership. Starting from the sixth year, you benefit from gradual tax relief. After 22 years of holding the property, you’re fully exempt from income tax on the gain. And if you’ve owned it for more than 30 years, you’re also exempt from social contributions — meaning no capital gains tax at all.

If, on the other hand, you sold the property for less than you paid, you may have a capital loss. In real estate, unfortunately, that loss isn’t deductible against other gains.

Not sure how much tax you might owe? Try our free online CGT simulator — it’ll give you a quick and easy estimate in just a few clicks.

At FTO, we handle all these calculations for you and make sure everything is 100% accurate. You stay informed, and we take care of the rest.

Frequently Asked Questions (FAQ)

Is the sale of my main residence taxable in France?

In most cases, no. If the property sold is your main residence at the time of sale, and you haven’t rented it out or vacated it beforehand, you are fully exempt from capital gains tax. Just make sure you meet all the conditions.

I’ve owned my property for over 30 years. Do I still have to pay tax?

No. If you’ve held the property for over 30 years, the gain is completely exempt from both income tax and social contributions. From 22 years onward, you’re already exempt from income tax — but full exemption kicks in at year 30.

I’m not a French tax resident. Do I still have to declare and pay CGT?

Yes, especially if you sell French real estate. You may also be legally required to appoint a tax representative if the property is sold for more than €150,000 and has been owned for less than 30 years — even if there is no gain. FTO can act as your tax representative.

How do I report capital gains on shares and investments?

These are not taxed at the time of sale. You must declare them annually with your French income tax return, using Form 2074. If you receive a tax report from a French bank (IFU), it will simplify things — otherwise, you need to track everything yourself.

Are crypto gains taxed in France?

Yes. Occasional gains are taxed at the flat 30% rate (PFU). Regular or professional trading may be taxed differently. You must report them using Form 2086, even if the platform is based outside France.

How is the gain calculated if I did renovations?

If you have receipts, the actual cost of renovation (excluding regular maintenance) can be added to your acquisition price. If not, and you’ve owned the property for over 5 years, you can apply a flat 15% deduction instead. We’ll help you decide which option works best.

Do I have to report if I made a loss?

Yes, but it depends. Capital losses from real estate can’t be offset against other gains, but losses from shares or crypto can be carried forward and deducted from future similar gains for up to 10 years.

Can FTO help me with my capital gain declaration?

Absolutely. From calculating your gain to submitting your declaration (and even representing you in case of audit), FTO handles it all. You stay informed at each step, and nothing is submitted without your review and consent.