Capital gains tax and non-resident: how to optimize your taxation with Maître Zakine

As a non-resident, selling real estate in France can lead to significant capital gains taxation. With an appropriate strategy, you can legally reduce this tax burden. Maître Cécile Zakine, real estate lawyer, guides you through the key mechanisms.

Understanding the calculation of capital gains for a non-resident

The taxable capital gain is the difference between the sale price and the acquisition price, after applying allowances for the duration of ownership. For non-residents, a flat-rate levy of 19% applies, plus social security contributions (17.2% for EEA residents, or 35% for others). Progressive allowances exist: 6% per year from the 6th to the 21st year, then 4% in the 22nd year, resulting in full exemption after 22 years of ownership.

Possible optimizations for non-residents

• Choice of tax regime: Under certain conditions, you may opt for the progressive income tax scale if it is more favorable than the flat tax.
• Deduction of works: Construction, reconstruction, expansion, or improvement expenses can be deducted from the acquisition price, subject to supporting documents.
• Acquisition costs: Notary fees and registration rights can be deducted for their actual amount or flat rate (7.5% of the purchase price).
• Exemption for transfer to a descendant: Sale to a child or grandchild may benefit from an exemption subject to prior donation conditions.
• Use of an SCI: Holding through an SCI subject to corporate tax can allow deferral of taxation or optimize transmission.

Planning strategies

Anticipate the sale by studying the holding period: if you are approaching the 22nd year, it may be advantageous to wait. For residents outside the EEA, a tax treaty may reduce social contributions. In case of a capital loss, it can be offset against future capital gains.

Why consult Maître Zakine?

Each situation is unique. Maître Zakine analyzes your case, negotiates with the administration, and secures your transaction. Her dual status as a lawyer and doctor of law guarantees expert knowledge.

Do not let taxation reduce your capital gain. Contact Maître Cécile Zakine for a personalized consultation.