The 19% headline rate
Non-residents disposing of French real estate pay a flat 19% income-tax CGT on their taxable gain, under Article 244 bis A of the French tax code. The rate is identical whether you live in London, Sydney, Dubai, or Sao Paulo. It has two exceptions that matter. Residents of non-cooperative jurisdictions, the short French blacklist published each year in the Journal officiel, pay 75%; short-term disposals of shares in a preponderantly real-estate company have their own regime. For every other non-resident seller, 19% on the gain is the first building block of the final bill.
How the taxable base is built
French CGT is calculated on a clean three-line base. You start from the sale price stated in the acte de vente. You deduct the acquisition cost, increased by a standard 7.5% lump-sum for notary and registration fees if you cannot document the historic figures, or by the actual invoices if you have kept them and they are higher. You then add any documented renovation invoice from a French registered professional, or a 15% lump-sum on the acquisition price if the property was held for more than five years and you prefer the flat option over actual invoices. The raw gain is sale price minus this reconstructed basis, and everything else flows from that single number.
The high-gain surtax
On top of the 19% rate, a progressive surtax applies once the taxable gain per seller crosses €50,000. The rate increases by one percentage point every €50,000 band, up to six points for gains above €250,000. For a couple, the surtax is tested on each share separately, so splitting the gain through joint ownership can keep both shares in lower brackets. The surtax is computed on the taxable gain after holding-period relief, not on the raw gain, which means it often shrinks or disappears on older properties.
View data as table
| Taxable gain band | Surtax |
|---|---|
| Up to €50,000 | 0% |
| €50,001 to €100,000 | 2% |
| €100,001 to €150,000 | 3% |
| €150,001 to €200,000 | 4% |
| €200,001 to €250,000 | 5% |
| Above €250,000 | 6% |
Allowances: timing and holding period
The single biggest lever on your final figure is the holding-period relief. The income-tax gain is fully exempt after 22 years of ownership; the social-charge base is fully exempt after 30 years. The taper runs year by year and is calculated at the anniversary of the original acquisition. A sale completed three weeks before an anniversary pays materially more tax than the same sale three weeks later, on the same price, same buyer, same notaire. Budgeting the deed date around an anniversary is the most predictable way to cut the bill on a property held for more than six years.
Worked example
An Australian resident sells a Riviera apartment bought for €320,000 in 2008 for €540,000 in 2026. Holding period: about 17 years, which gives roughly 82% income-tax relief and roughly 29% social-charge relief. Raw gain: €220,000. Taxable income-tax gain: around €40,000 after taper, with CGT at 19% equal to €7,600 and no surtax since the taxable gain is under €50,000. Social-charge base: around €156,000 at 17.2% equals €26,832. Total tax: roughly €34,400, on a raw gain of €220,000. Representative fee: €2,300. Net cash after agent commission and tax: in the region of €485,000.
Pitfall to avoid
The pitfall is running the 19% rate on the raw gain and stopping there. That calculation misses the two largest real-world components: the social charges (which can add almost as much again) and the surtax on gains above €50,000. Sellers who budget on the 19% number alone routinely under-provision by 40% to 60% of the actual tax. Always build the four-line stack (income-tax CGT, surtax, social charges, representative fee) before quoting your expected net proceeds to anyone.
Pro tip
If your total projected bill sits on a bracket edge of the surtax, consider splitting the disposal across two calendar years or across two sellers where the ownership allows it. A single-seller gain of €102,000 pays a 3% surtax on the full band; the same gain split into two €51,000 shares pays 2% each, and the arithmetic is materially better. The lever works only before signature of the compromis, because after that the allocation is locked. Discuss with your notaire and your accredited representative at the same table; each will have a different part of the answer.
Key takeaways
- The 19% rate is a flat rate for non-residents, with a 75% exception for blacklist jurisdictions.
- The taxable base is sale price minus documented (or 7.5% flat) acquisition cost, minus the renovation allowance.
- The surtax bites above €50,000 per seller and adds up to six percentage points on the taxable gain.
- Social charges of 17.2% (or 7.5% for EU/EEA/Swiss and post-Brexit UK residents) stack on top of the income-tax CGT.
- The holding-period relief is the strongest lever: one day after an anniversary can change the bill materially.
Frequently asked questions
Is the 19% rate the same whether I live in the UK, the US, or Singapore?
Yes for the income-tax share of French CGT: 19% is a flat rate applied to non-residents regardless of their country of residence, as long as it is not on the French blacklist of non-cooperative jurisdictions, where a 75% penalty rate applies. What changes between countries is the social-charge rate and, sometimes, the tax treaty credit you can claim back home.
Do I pay CGT on the full price or on the profit?
On the profit, once the French method has been applied: sale price, minus the statutory cost basis, minus the holding-period allowance. That last step is decisive and is explained in the holding-period guide.
Can I deduct the representative fee and the agent commission?
The agent commission is deductible from the sale price if it is itemised as borne by the seller in the deed. The accredited representative fee is not deductible from the gain, although some firms structure part of the invoice as documentary expenses to salvage a partial deduction. Ask before signing.
What if my gain is a loss?
A capital loss on a French property disposal cannot be set off against other French income or other gains, and it is not exportable back to your country of residence through the treaty. The filing still takes place, but at a reduced representative fee on most firms.
Social charges on top
Social charges (prélèvements sociaux) apply on a different base and at a different pace from the income-tax CGT. The headline rate is 17.2%, but residents of another EU/EEA country or Switzerland who contribute to a social-security scheme in that country pay a reduced 7.5% levy (the solidarity surcharge only). Post-Brexit UK residents are a special case and generally benefit from the 7.5% rate under the UK-EU withdrawal agreement. The rate you end up paying is country-specific and documentary, not negotiable.