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,
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
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 is insufficient, but this is subject to restrictions and does not replace documentary evidence where it exists.
Acquisition and disposal costs
Acquisition costs include registration fees, notary fees and deed costs. Selling costs include real estate agency commissions and mandatory diagnostics. To be included in the calculation, they must be directly linked to the property, documented by vouchers and consistent with payment flows. Isolated documents with no clear link to the transaction will always be contested by the tax authorities.
Common features
Several situations call for increased attention and documentation:
- Joint ownership, dismemberment, variable quotas: the allocation of the price and the cost price must be justified and proportionate to the rights of each party.
- Assets received by gift or inheritance: recovery of values declared at the time and costs incurred on transfer
- Property subject to phased works: distinguish maintenance expenditure (non-deductible) from improvements
The tax representative’s role in the calculation
The tax representative checks documentary consistency, models the capital gains calculation and certifies the file before filing. He checks the length of the holding period, sorts out the admissible documents, correctly applies the allowances and ensures that the amounts shown on the capital gains declaration correspond to the data declared. This cross-check avoids inconsistencies that would trigger an audit. For a detailed description of the role of a tax representative, please refer to the article The role of a tax representative.
Tax treaties and countries of residence
A tax treaty can avoid double taxation by means of a tax credit or an apportionment key, without neutralizing the French calculation rules. The absence of a tax residence certificate at the date of sale may block the sale of the property.
Parts sorting and presentation
A file that is accepted on the first try often depends on the quality of its presentation. Grouping documents in logical blocks (acquisition, work, transfer), numbering each document, explaining the connections and summarizing the totals in a summary table avoids unnecessary to-ing and fro-ing. Payments must be
Short examples
- Apartment owned for 18 years with complete renovation 5 years ago. Compliant invoices and traceable payments allowed the work to be included in the cost price. Tax allowances recalculated, tax base reduced and file accepted without reminder.
- House owned for 9 years with open quotes and purchase of materials. With no invoiced installation or proof of payment, the expenses were disregarded. The tax base increases, but the case passes without a reminder thanks to a clear and honest presentation.
- Commercial premises owned by non-EU foreign company. Representation required, chain of ownership and accounting documents collected. Calculation certified by tax representative, signature not delayed by tax issues.
Mistakes to avoid
The same causes recur regularly in rejected or contested cases:
- Confusingroutine maintenance with improvement work
- Incorrectly date theacquisition or forget an intervening legal event (donation, inheritance, contribution)
- Include expenses not attached to the asset or not actually paid
- Failure to provide proof of tax residence or Swiss social security coverage
- Submitting an incomplete file will delay signing and cause problems for the parties involved in the real estate sale.
Additional information
If you want to understand the sequence of tasks on the professional side, see the article on the role of a tax representative. To limit the number of missteps and secure your transaction, the main pitfalls are listed in the common mistakes made by non-residents when selling in France.