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
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 affiliation to a compulsory health insurance scheme in Switzerland, as well as confirmation that he is not covered by the French social security system.
To benefit from this mechanism, it is essential to produce a certificate of Swiss tax residence issued by the cantonal administration at the time of the transfer. Without this document, application of the treaty becomes difficult, if not impossible.
Documents required for calculation
The surplus value file must be carefully documented. What to expect:
- Deed of acquisition with price, date and acquisition costs (registration fees, emoluments)
- Acceptable work invoices: improvement or conversion work invoiced by companies and paid for by bank transfer or cheque.
- Proof of sale: compromis, acte authentique, agency commissions, mandatory diagnostics
- Proof of Swiss tax residence on the date of sale
- Proof of length of ownership: reconstituting the chain in the case of gifts, inheritance or joint acquisition
A complete, well-structured file avoids additional requests that delay signature.
Switzerland’s special features
For Swiss residents, there are several points that deserve special attention:
- Payment traceability: the French authorities require proof of payment (bank transfers). Cash payments are not accepted.
- Proof of work: for older properties, invoices are often missing or incomplete. A lump-sum payment may be applied under strict conditions.
- Coordination with the notary: anticipate the filing of tax returns before final signature to avoid delays.
- Swiss tax return: even if tax is paid in France, the capital gain may have to be reported on the Swiss tax return to calculate the tax credit.
Common mistakes made by Swiss salespeople
The same pitfalls recur regularly:
- Not requestingproof of tax residence early enough (cantonal deadlines vary)
- Confusingmaintenance work (non-deductible) with capitalizable work
- Miscalculating the holding period for gifts and inheritances
- Submitting invoices without legal mentions or proof of payment
- Neglecting the tax treaty and risking double taxation
For a detailed understanding of calculation rules and acceptable documents, see the article on capital gains and tax representation. To avoid common mistakes, see also common mistakes made by non-residents.
The role of the tax representative for a Swiss resident
The tax representative checks that the calculations are correct, gathers and sorts the supporting documents, dialogues with the notary and the tax authorities, and then certifies the file. The tax representative is jointly and severally liable with the seller, which secures the transaction and speeds up processing. For Swiss residents, this mission also includes verifying the correct application of the Franco-Swiss convention, and coordinating with cantonal authorities where necessary.
Case studies
- Apartment in Paris held for 20 years: Geneva resident for 10 years, renovation work carried out 8 years ago. With compliant invoices and proof of Swiss residency, the application was quickly accepted. Tax allowances applied, tax credit obtained in Switzerland.
- House in Haute-Savoie held for 12 years: resident of Vaud, work partially documented. The tax representative dismisses the questionable documents, applies the flat rate for the rest, presents a coherent calculation. Signature without delay.
- Commercial premises owned by Swiss company: representation required, chain of ownership reconstituted, accounting documents collected. Calculation attested, transaction secured.
Timetable and anticipation
To avoid any last-minute stress, here is an indicative timetable:
- As soon as the promise of sale is signed: request a certificate of Swiss tax residence (deadline: 2 to 6 weeks depending on canton).
- 2 months before signing: collect deed of purchase, work invoices, proof of expenses
- 6 weeks before signing: forward file to tax representative for calculation and verification
- 1 month before signature: file with French tax authorities
- Signature: secure transaction, funds released without delay
Cross-border support
At Bergeot Paoli Associés, we regularly act for Swiss residents selling in France. Our cross-border assistance covers document review, capital gains calculation, application of the Franco-Swiss convention, coordination with the notary and certification of the file. The objective: a smooth signature and full compliance. To get started and find out more about our team, consult our tax representation service in France.