Other French tax
Since the beginning of 2004, when the deed of the sale is drawn up, it is the notary who must declare and pay (by deduction from the sale price) any possible profit tax on behalf of the seller.
If you sell your property for more than €150,000, as a non-resident, you are obliged to appoint a tax representative in France who undertakes to complete all the tax formalities (even if no capital gains has been made on the sale).
Please note that this is a service offered by one of our partners, French Capital Gains Tax. Their fee for this service is 0.598% (including VAT) of the sale price instead of the usual 1% charged by other tax representatives.
Visit their website for more information : www.french-capital-gains-tax.fr
Through this website, you can access to the latest information on French CGT (new assessment of the French CGT as of February 1st 2012), get an estimate of the amount of CGT you have to pay when selling your French property and a quote of their fees as a tax representative.
Click here for a table that gives you a comparison between furnished and unfurnished rentals.
You can be exempt from land tax for 2 years if you complete an H2 form within 90 days of the date of completion of the construction works. The exemption may be total or partial, depending on whether or not the district council where the property is situated agrees to exempt the district quota of this land tax. If the H2 form is returned after the 90 days, it is no longer possible to benefit from the exemption. If your property is rented out and you have to pay the land tax (totally or partially), you can offset it against your rental profits, and therefore your income tax.
Owners who decide to rent out their newly constructed French property can benefit from tax advantages if they select this option when filing their income tax return in the year of construction completion, and if they meet the criteria.
If the option is not selected, it is not possible to benefit from tax advantages.
Tax advantages will no longer apply if the owner does not respect the obligations required by law. In this case, the deductions from which the owner has benefited will be reintegrated in the rental income, the year in which the reintegration occurs.