Moving to France after several years in Switzerland profoundly alters the applicable tax system. Unlike leaving for Switzerland, which triggers an exit tax on unrealised capital gains on significant securities, returning to France does not trigger any specific federal taxation on the Swiss side. On the other hand, several technical issues arise simultaneously: withdrawal from the 2ᵉ pillar, articulation with current cantonal returns, eligibility for the impatriate regime, treatment of assets held during expatriation. Here are the essential points to prepare for a smooth, tax-optimized return. Switzerland has no exit tax in the French sense First point to remember: Switzerland does not have a system equivalent to article 167 bis of the French CGI. The departure of a Swiss resident to France does not trigger federal taxation on unrealized capital gains on privately held securities. This federal neutrality constitutes a strategic advantage: securities portfolios can be held or sold according to economic opportunity, without any specific tax constraints linked to the transfer of residence. There are, however, a few exceptions at cantonal level: the latent business reserves of self-employed persons working in Switzerland (clientele, business goodwill, fixed assets) may be taxed on cessation of activity or transfer outside the canton, in accordance with cantonal rules; unrealized foreign exchange gains on certain business accounts may be subject to special treatment. For an executive, director or annuitant holding classic private assets (securities, real estate, bank accounts), no exit tax is due on the Swiss side at the time of departure. Withdrawal from

Before a non-resident sells real estate in France, there is a key step that is often overlooked: appointing a tax representative. Without one, the transaction may be blocked or delayed. This legal obligation is designed to ensure the correct declaration and payment of capital gains tax. When is tax representation mandatory? The law provides for several situations in which a non-resident must appoint a tax representative when selling a property located in France: when the sale price exceeds €150,000; when the property has been owned for less than 30 years; when the transferring company is based outside theEuropean Union or theEuropean Economic Area (excluding Liechtenstein). These conditions apply to both individuals and companies. They are designed to ensure that the capital gain generated by the sale is correctly calculated and taxed. In these situations, our tax representation service in France helps to secure the transaction and avoid any blockage. Why is a tax representative required by law? The French tax authorities seek to ensure that the tax owed by a non-resident vendor will be collected. The tax representative plays the role of guarantor: he draws up the capital gains declaration, it checks the calculation and applicable allowances, he is accountable to the authorities for proper execution. This obligation may seem onerous, but it is designed to secure the transaction for both the State and the seller. Concrete examples of situations Sale of an apartment in Paris for €250,000 by an American resident: appointment of a tax representative is mandatory. Sale

Prior to the sale of real estate in France by a non-resident, the tax representative is more than just a go-between. He verifies, certifies and assumes responsibility alongside the seller. His intervention avoids delays in the sale and avoids tax risks. A responsible intermediary, not just an agent The tax representative is jointly and severally liable with the seller for payment of capital gains tax. In the event of an error in calculation, omission of proof or misapplication of an exemption, the tax authorities can turn to the tax representative. This responsibility changes the nature of the mission: he not only submits a CERFA form, but also guarantees the conformity of the transaction. For the seller, this means fewer uncertainties and a smoother transaction. What it checks, in concrete terms In addition to the deposit, the mission is based on a series of technical checks. These include The length of time the property has been held, in order to apply tax allowances or achieve total exemption beyond 30 years. The status of the seller (natural person, company, EU/EEA or non-EU resident), which determines the obligation to represent the seller. Proof of work carried out to increase the purchase price and reduce taxable capital gains Proof of ancillary expenses (registration fees, notary fees, commissions) to adjust the calculation Proper application of tax treaties to avoid double taxation The accuracy of the data in the deed (surface areas, quotas, date and purchase price) These checks are accompanied by a document sorting process.

Prior to a sale in France, the rules are not the same forEU/EEA and non-EU residents. Depending on the profile, tax representation may be waived or required, and the burden of proof varies. If you’re looking for a more structured process, our tax representation service will explain the procedure and the documents required. Why the distinction exists Within the EU/EEA, administrative exchanges are smoother and document recognition simpler. Outside the EU, monitoring and collection are less straightforward, which is why representation is required to guarantee deposit and payment. In both cases, the calculation of added value remains at the heart of the case and conditions the fluidity of the transaction. EU/EEA-based sellers For EU/EEA residents, no tax representation is required. However, taxable capital gains must be calculated, and tax advice is often required. To be anticipated Proof of EU/EEA residence on the day of the transfer (tax certificate, certificate of residence) Completeness of calculation documents: purchase price, acquisition costs, acceptable work Consistency of dates, quotas and means of payment Documentation of allowances for length of ownership In practice, a well-supported file enables the notary to process the sale without delay, and avoids additional requests from the authorities. Non-EU sellers For non-EU residents (e.g. in Switzerland), fiscal representation is generally required when the sale price of the property exceeds €150,000. The aim: to ensure accurate calculation of the taxable capital gain and compliant filing before signature. Recurring control points Holding period and applicable allowances (up to total exemption after 30 years)

Selling a property in France from abroad means mastering the calculation of capital gains and the quality of supporting documents. When representation is required, our team dedicated to tax representation in France frames the documents and certifies the file to avoid any blockage when the deed of sale is signed. Understanding the calculation basis The taxable capital gain corresponds to the difference between the sale price and the cost price. The cost price includes the initial acquisition price, acquisition costs (registration fees, notary’s fees, deed costs) and, under strict conditions, acceptable work. The aim is to present a calculation that is legible, traceable and accepted without a reminder. Allowances and length of ownership Deductions depend on the length of ownership, and apply separately to income tax and social security contributions. Two points are particularly important: the date of acquisition (gift, inheritance or contribution can change the starting point), and the length of ownership, especially if the property is rented out furnished (LMNP -LMP). An error of just a few months can result in the property falling into a different tax bracket, and significantly alter the tax due. Acceptable work: what goes, what breaks Work that increases the value of the property or transforms it, invoiced by companies and actually paid for, is admissible. The following are often disregarded: unpaid estimates, purchases of materials without invoiced installation, untraced cash payments, invoices without mandatory legal mentions. For older holdings (over 5 years), a flat rate may sometimes be applied when documentary evidence

Selling property in France from abroad is as much about numbers as it is about evidence. Delays rarely stem from a theoretical point, but from an incomplete or poorly supported file. A certified tax representative can help you frame the documents and validate a calculation accepted the first time around, thereby securing the process and avoiding last-minute stumbling blocks. Error 1: Confusing maintenance with capitalizable work Many companies considerroutine maintenance (painting, minor repairs, identical replacements) to be eligible work. Only work that significantly increases the value of the property or transforms it (complete renovation, extension, structural improvement) and that is invoiced by a company can increase the cost price. Without a valid invoice and traceable payment, the expense is systematically rejected by the authorities. Error 2. Incorrectly dating the period of ownership A wrongly counted month can change the applicableallowance and alter the amount of tax due. Precise reconstitution of dates and quotas avoids an erroneous calculation that would penalize the seller or trigger an audit. What’s more, if the property has been rented out on a furnished basis (under the LMNP or LMP scheme), any depreciation must be taken into account when calculating the capital gain. For the LMP regime, capital gains are calculated differently. Error 3: Include unrelated expenses Bank handling fees, small expenses with no direct link to the property, unjustified commissions… If the link with the sale is not obvious and documented, the document will be rejected. It’s better to present a coherent and limited set

Residing in Switzerland and selling a property in France requires an understanding of French tax rules, the relationship with the Franco-Swiss tax treaty and the role of the tax representative. In order to secure the transaction and avoid any blockage at signature, our tax representation support frames the file from start to finish. Capital gains taxable in France Even from Switzerland, the sale of a property located in France generates a capital gain taxable in France. The calculation follows French rules: the difference between the sale price and the cost price (acquisition + expenses + eligible work), then the application of deductions for length of ownership. After 30 years of ownership, the capital gain is fully exempt from income tax and social security contributions. Swiss residency and tax representation Switzerland is not a member of the European Union. In practice, the French tax authorities require the appointment of a fiscal representative if the sale price exceeds €150,000. To limit any risk of blockage, it is advisable to anticipate this question as early as the promise to sell. Franco-Swiss tax treaty: what it changes The tax treaty between France and Switzerland of September 9, 1966 (amended in 2014) stipulates that gains from the sale of real estate located in France are taxable in France. It does not exempt the Swiss seller from French tax, but it does avoid double taxation. French social security contributions (17.2% of the taxable capital gain) are not due if the seller provides proof of the seller’s

Choosing a French-Swiss tax advisor is not just a question of compliance. The tax rules that bind France and Switzerland imply precise arbitrations on residence, income management and wealth structuring. Understanding the criteria for selecting such a professional will enable you to address these issues with an appropriate and sustainable strategy. A specific cross-border tax context The tax relationship between France and Switzerland is based on a specific legal framework. The double-taxation treaty, the rules specific to each state and the practice of tax authorities require a global understanding. For individuals and companies alike, tax residence is often the first question to be decided. Criteria vary according to length of stay, center of vital interests or professional activity. Incorrect qualification can lead to double taxation or costly reassessments. Tax issues extend far beyond residence. They also concern earned income, dividends, interest and capital gains. Each category of income is subject to specific rules, depending on whether it is generated in Switzerland or France, and on the taxpayer’s status. The choice of a tax advisor should therefore take into account his or her ability to articulate the two systems. The diversity of situations encountered The profiles concerned by Franco-Swiss taxation are many and varied. They include individuals living in France and working in Switzerland, retirees who have made contributions in both countries, investors with real estate holdings on both sides of the border, and entrepreneurs seeking to develop their activities in both markets. Each situation requires different mechanisms. The treatment of