Source: https://www.notaires.fr/en/capital-gains-tax-property-0
Timestamp: 2019-04-19 09:56:36+00:00

Document:
The real estate capital gain is equal to the difference between the sale price and the purchase price or the declared value, when the property has been received by donation or inheritance .
Calculate your capital gains tax on property !
The capital gain is equal to the difference between the sale price (less costs to sell and the amount of VAT paid) and the purchase price (including premium actually paid registration fees when buying or a flat rate of 7.5% of the purchase price) or the declared value when the property was received by gift or inheritance (plus actual expenses and any inheritance rights if they were supported by the donee or ' heir ).
The purchase price may be increased construction expenditures, reconstruction, expansion or improvement if they were supported by the vendor and built by a company in the supporting statement of reserves (invoices subject to VAT. (Note: materials and work done by the owner itself are not deductible). It takes more they have not already been taken into account in determining the income tax (including deduction for property income) and do not have the character of rent expense (CGI, art. 150 VB II, 4°).
The work considered in determining real estate capital gains are defined in the same way as those taken into account in determining taxable income property.
Can only be taken into account in the gross expenditure purchase price made since the completion of the building or its acquisition if later..
In all cases, the expenses of maintenance and repair, including major repairs, are not included among the expenses that can be taken into account for calculating the capital gain. They include those which correspond to work intended to maintain or restore a building in good condition and to allow normal use.
Spending increase coming in the purchase price must be justified (CGI, art. 150 VB II). However, the evidence supporting the work are provided only on request of the administration (CGI, Sch. II, art. 74 SI). (CGI, ann. II, art. 74 SI).
Alternatively, the seller can increase by 15% the acquisition value if it is owner for over 5 years, at a flat rate, without having to establish the reality of the work, the amount of work actually carried out or its inability to provide supporting (CGI, art. 150 VB II, 4°). There is no need to consider whether spending work has already been taken into account in the assessment of the tax on income. 15% of the package is a simple option for homeowners taxpayers well over five years. It does not stack with actually borne by the owner costs.
While many works were carried out in the second home, the notary advise to keep all invoices for the purchase price may be subject to an increase in the amount of actual expenditure of work whose invoices have been preserved. Otherwise, only the flat-rate increase of 15% may be applied without justification if the property is held for at least five years.
The rate and pace of abatement for holding period is different for determining the tax base for the income tax and social contribution.
Consult the french practical sheet about the declaration of capital gains on property.
after 30 years in detention for social contributions.
In accordance with the provisions of II of article 28 of the law n ° 2017-1775 of the December 28, 2017 of amended finance for 2017, an exceptional tax allowance applies, under conditions and temporarily, for the determination of the net capital gains, both on income tax and social security contributions, resulting from the transfer of building land or built real estate, or rights relating thereto.
be made no later than 31 December of the second year following the year during which the unilateral or synallagmatic agreement to sell has acquired certain date. In practice, the exceptional allowance may therefore apply to sales completed until December 31, 2022.
The capital gain is taxed under the income tax at the current flat rate of 19% (with a linear reduction of 6% from year 6) and on social levies current rate of 17.2% (with a taper relief from the 6th year).
The amount of tax will be charged by the notaire on the sale price at the signing of the deed and paid by it to the tax authorities.
An additional fee (from 2 to 6% depending on the amount of surplus value after application of the deduction) applies on real estate gains, other than on building sites, an amount exceeding €50,000. Capital gains are concerned resulting from disposals since 1 January 2013. (CGI Art. 1605 nonies).
It can be seen in connection with the sale of a building plot became an additional municipal tax (CGI Art. 1529) and / or an additional national tax (CGI Art. 1605 ch).
The capital gains tax varies according to the selling price, the nature of good, and the holding period. The principle of tax exemptions are cases specifically provided.
Property sales escaping the tax on real estate gains are recorded in the II et III de l’article 150 U CGI.
Those carried out on the occasion of the sale of property held for over 30 years.
The transferor must proceed to reinvest the proceeds of sale " within twenty-four months from the disposal, for the acquisition or construction of a dwelling which affects upon completion or acquisition if later, at his main residence » (CGI, art. 150 U II, 1° bis, al. 2 - in limine).
In case of breach of any of these conditions, the exemption is challenged under the year of the breach. (CGI, art. 150 U II, 1° bis, al. 2 - in fine). More information on the Official Bulletin of French Public Finance Tax.

References: art. 150
 art. 150
 art. 74
 art. 74
 art. 150
 Art. 1605
 Art. 1529
 Art. 1605
 art. 150
 art. 150
in fine