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)
- Traceability of work, acquisition and disposal costs
- Correct application of a tax treaty to avoid double taxation
- Presence of a fiscal representative who certifies the file and assumes joint and several liability
The quality and traceability of supporting documents are a prerequisite for rapid acceptance of the application without a reminder.
Interposed companies and structures (non-EU)
For a foreign company(outside the EU), representation is required for all sales files, and the documentation required is extensive: up-to-date articles of association, chain of ownership, signing authority, accounting documents, detailed proof of expenses. A foreign SCI or holding company is often required to produce supporting documents that a private individual does not have to provide, particularly concerning the composition of the shareholder base.
Documents to be prepared according to profile
The documentation base is common, but traceability requirements are more stringent outside the EU. Upstream planning:
- Deed of purchase with price, date and details of acquisition costs
- Receivable and paid work invoices, work contracts, proof of payment
- Receipts for agency commissions and selling expenses
- Tax identification and certificate of residence on the date of transfer, membership of a Swiss social security fund
- For companies: articles of association, extract from the register, powers of attorney, proof of ownership, and financial statements.
The aim: to present a documented and verifiable value-added calculation the first time around, thus reducing the risk of stumbling blocks.
Short case studies
- Resident of an EEA country, apartment held for 15 years. Fiscal representation not required. The key is a complete capital gains file and proof of valid EEA residency at the time of sale.
- Non-EU resident, house owned 12 years with major works. Representation generally required. The key: prove the reality and payment of eligible work to adjust the tax base downwards.
- Sale of business premises by a non-EU company. Regular representation. Extensive set of documents (company, property, expenses) and calculation certified by representative before signature.
Avoid common mistakes
Errors have less to do with the country of residence than with the quality and anticipation of the file:
- Non-compliant work documents (unpaid estimates, invoices without legal mentions, untraced cash payments)
- Incorrectly calculated holding period for joint ownership, gifts, inheritance or company contributions
- Incomplete filing delays signature and generates late penalties
To understand the operational role of the professional who certifies these elements, see the article on the role of a tax representative. To reduce common faux pas and secure your transaction, take a look at the common mistakes made by non-residents when selling in France.