Why read the article at all
Most non-resident sellers take the representative requirement as a black box: the notaire says appoint a firm, the firm sends a quote, the deed closes. That works until something unexpected happens, a dispute on the gain, an audit on the allowances, a refund on over-withholding, and suddenly the answers sit inside Article 244 bis A of the Code général des impôts. Knowing how the article is written, in what order, and which paragraph controls which question saves you from paying an adviser to read it to you. It also lets you spot when a firm is misquoting the statute, which we see often when representation is mispriced against a sale that actually falls outside the article scope.
The structure in four paragraphs
Article 244 bis A is short by French standards, four paragraphs that are easy to hold in your head. Paragraph I defines the scope, who the article applies to and what assets it covers. Paragraph II sets the rate of the specific withholding, which is separate from ordinary income tax. Paragraph III creates the fiscal representative obligation and its carve-outs. Paragraph IV lists the exemptions that remove the operation from the scope altogether. When a tax question arises, reading the article in order is the quickest route to the answer, there is no hidden cross-reference that a specialist would see and you would miss.
Paragraph I, who is in scope
The first paragraph puts two conditions side by side. The seller must not be a French tax resident on the day of the sale, and the asset must be French real estate or rights over it, including shares of a company whose assets are predominantly French real estate (a société à prépondérance immobilière). If both conditions are met, the operation falls in scope and the rest of the article applies. If the seller becomes a French tax resident between the compromis and the deed, the article ceases to apply, which is one of the few optimisation levers available at the tail end of a transaction.
Paragraph II, the rate
Paragraph II sets the income-tax component of the gain at 19 percent. Social charges are added in a separate code (the Code de la sécurité sociale), but everyone calls the bundle 244 bis A for short. The rate applies to the taxable gain, not the sale price, after allowances for cost of acquisition, documented works, and taper relief. A surcharge between 2 and 6 percent kicks in on gains above €50,000 per seller, layered on top of the 19 percent base. The representative computes all of that on the 2048-IMM return and the notaire withholds the total at the deed.
Paragraph III, the representative clause
This is the paragraph that sends you to this site. It states that the seller must appoint an accredited fiscal representative to guarantee the payment of the tax due under paragraphs I and II. The representative signs the return, posts the statutory guarantee, and remains liable jointly with the seller for three years. The same paragraph lists the two carve-outs the administration accepts without a formal appointment: a sale price at or below €150,000 per seller, and a 30-year holding period on residential property that wipes out both CGT and social charges. Outside those two, the appointment is mandatory.
Paragraph IV, exemptions
The fourth paragraph is shorter, it sets out the exemptions that remove the operation from scope. The most important is the EU, EEA, and Swiss residency exemption introduced in 2015 to align with European case law. A resident of any EU member state, Iceland, Liechtenstein, Norway, or Switzerland is not required to appoint a representative, regardless of the sale price. The paragraph also preserves the classic principal-residence exemption in the narrow cases where it can still apply to a former resident, and references the treaty-based exemptions for certain diplomatic and international-organisation personnel. Beyond these, the seller stays inside paragraph III.
Worked example
Priya, an Indian resident, sells a €520,000 Nice apartment held for 11 years. Paragraph I, she is non-resident and the asset is French real estate, in scope. Paragraph II, the gain is €145,000 after allowances, so 19 percent income tax is €27,550 and social charges at 17.2 percent are €24,940, total €52,490 on the day of the deed. Paragraph III, she is above €150,000 and below 30 years of holding, representative is required. Paragraph IV, India is outside the EU and EEA, no exemption applies. The accredited firm quotes €2,700 flat, signs the 2048-IMM, posts the guarantee, the notaire wires the €52,490 withholding to the tax office and releases the net proceeds.
Pitfall to avoid
Readers often conflate paragraph III (the representative rule) with paragraph IV (the exemptions). They are not the same. A seller can be exempt from the representative requirement under paragraph III (for instance because the price is below €150,000) while the operation itself is still in scope under paragraph I and II and therefore still taxed. Being exempt from appointment does not mean being exempt from tax. The notaire withholds the 19 percent plus social charges on the day of the deed regardless, the only thing that changes is the absence of a co-signatory.
Pro tip
Keep a printed copy of the current version of Article 244 bis A, downloaded from legifrance.gouv.fr, in your transaction folder. The text is short enough to fit on two pages, and having it physically to hand settles most disagreements with advisers and buyers who remember an older wording. The article has been amended several times; the 2015 EU/EEA reform and the 2021 post-Brexit guidance are the two versions that matter for non-residents today. Before each sale, verify the date of the printout, because secondary sources, including some firm brochures, can lag two or three years behind.
Key takeaways
- Four paragraphs: scope, rate, representative clause, exemptions.
- Rate is 19 percent income tax plus social charges, with a surcharge above €50,000 of gain.
- The representative clause carves out sales at or below €150,000 and 30-year residential holdings.
- EU, EEA, and Swiss residents are exempt from the representative requirement by paragraph IV.
- Being exempt from appointment does not mean being exempt from the tax itself.
- Always read the live Legifrance version, firm brochures can lag the last reform by years.
Frequently asked questions
Is Article 244 bis A the only statute that matters?
For real-estate gains by non-residents, yes, it is the main one. It is read together with Articles 150 U to 150 VH CGI for the computation of the gain, and with Article 244 bis B for share-based situations. The representative obligation itself is inside 244 bis A, paragraph III.
Does the article apply to commercial property?
Yes. The text refers to immovable property and rights over it, without distinguishing residential from commercial. Office buildings, shops, warehouses, vineyards all fall in scope if the seller is a non-resident. The rate and representative rule are identical.
Does the article apply to rental income?
No. 244 bis A is specifically a capital-gains provision at the moment of sale. Rental income by non-residents is taxed under Article 4 bis and withholding rules set elsewhere in the code. A fiscal representative for CGT purposes is not appointed for ongoing rent.
Can the rate change mid-operation?
The statutory rate is set at 19 percent plus social charges for most non-residents. It has been stable for several years, but the social-charges split (7.5 percent or 17.2 percent) depends on the seller affiliation to an EU social-security scheme, which can shift during a sale if the seller relocates.