Legal basis for US residents
The US is not in the EU, the EEA, or Switzerland, so US residents fall squarely inside the scope of Article 244 bis A of the French tax code. Above €150,000 per seller on a real-estate sale in France, an accredited fiscal representative must be appointed before the deed of sale. The notaire cannot release the proceeds without the representative signing off the 2048-IMM filing. There is no treaty exception, no IRS waiver, and no notaire workaround. The same rule applies whether you are a US citizen, a US green-card holder, or a third-country national tax-resident in the US.
What the US-France tax treaty does control is the second-order question of where the tax sits at the end of the year. The treaty grants France the primary right to tax gains on French real estate (Article 13), and the US then taxes the same gain under its worldwide-income rules with a foreign tax credit for the French tax paid. The result, in most cases, is that the French tax fully absorbs the federal capital-gains tax that would otherwise apply, with state tax (California, New York, and others) sitting on top because state systems do not follow the foreign tax credit.
Applicable rates in 2026
Three layers apply to a US resident selling French real estate: a flat 19% income-tax CGT, the full 17.2% social charges (no Brexit-style carve-out exists for US residents), and a progressive surtax that begins at €50,000 of taxable gain per seller and reaches 6% above €260,000. Holding-period tapers cut both bases before the rates apply, with full income-tax exemption at 22 years and full social-charge exemption at 30 years.
View data as table
| Layer | Rate |
|---|---|
| Income-tax CGT | 19% |
| Social charges (CSG, CRDS, prélèvement de solidarité) | 17.2% |
| Progressive surtax (top band, gain above €260,000) | 6% |
Worked example: a New York couple sells a Paris apartment
David and Sarah live in Brooklyn and own a 6th arrondissement apartment jointly since 2010. They sell in 2026 for €1,100,000, having bought for €620,000 plus €52,000 of notarial fees, with €68,000 of documented renovation work invoiced by French registered contractors. Each spouse\'s share of the price is €550,000, well above the €150,000 threshold, so an accredited representative is required. Gross gain: €360,000 (€1.1m minus €620k minus €52k minus €68k). Holding period at signature: 14 years. Income-tax taper at 14 years cuts the taxable base to roughly 48% of the gross gain, so €172,800. Social-charge taper at 14 years cuts the base to about 76% of the gross, so €273,600. Income-tax CGT: 19% of €172,800, so €32,832. Social charges: 17.2% of €273,600, so €47,059. Progressive surtax on €172,800 of taxable income-tax gain: roughly €4,500. Representative fee, typically between 0.4% and 1% of the sale price, so between €4,400 and €11,000. Total French deductions from the escrow: approximately €88,000 to €95,000, before the notaire\'s own fees. On the US side, David and Sarah report the gain on Schedule D; their combined federal long-term capital-gains tax of roughly $50,000 is fully absorbed by the foreign tax credit, leaving New York State tax of about $13,000 to settle in April.
One rare tip for US residents
Time the deed of sale and the transfer of euros into US dollars deliberately. The IRS computes the gain in US dollars at the historical exchange rate on the purchase date and at the spot rate on the sale date, while France computes it in euros throughout. Between those two systems sits an exchange-rate gain or loss that does not exist for the French tax but absolutely exists for the IRS. A weak euro at the sale date can manufacture a US-side loss even when the French side records a gain, and a strong euro can manufacture a US-side gain on top of the French one. A good US tax preparer will run both columns before you sign the deed; ask the accredited representative for the projected French timeline so the US filing can be modelled in advance.
How the US-France treaty really works on the gain
The treaty does not let either country off the hook entirely. France taxes first under Article 13, the IRS taxes the worldwide gain, and the credit on Form 1116 reconciles the two. The arithmetic favours the French side because French rates are usually higher than US federal long-term capital-gains rates, so the credit washes out the federal liability. Where US residents get caught is on three secondary lines: depreciation recapture if the property was rented out and depreciated in the US filings, the Net Investment Income Tax of 3.8% which the IRS treats as outside the credit basket, and state-level tax in jurisdictions like California that ignore the foreign tax credit altogether. A clean French file from the accredited representative does nothing for those three layers; only a careful US preparer does.
The SCI ownership trap
US residents who bought a French property through an SCI have an extra question to answer before the sale: did the SCI elect French corporate tax (impôt sur les sociétés) at any point in its life? If yes, the IRS treatment switches from partnership-style transparency to a Passive Foreign Investment Company analysis, which can be punitive on a sale even if no US tax would otherwise be due. The accredited French representative will not know this; the question lives in the SCI statutes and in the Cerfa filings made when the company was set up. Pull the SCI tax status before pricing the sale, not after, and bring it to your US preparer with a full chronology.
Pitfall to avoid
Do not assume that posting the IRS Form W-9 and a US tax-residency certificate to the French notaire excuses you from appointing a representative. The certificate proves where you are tax resident; it does not turn off the procedural French rule. Notaires routinely receive US sellers who arrive at the deed signature with a beautifully prepared treaty file and no representative, and the deed gets postponed by four to six weeks while a representative is located, retained, and brought up to speed. Appoint the representative when you sign the estate-agent mandate, not after the compromis.
Key takeaways
- US residents need an accredited representative above €150,000 per seller, no treaty waiver applies.
- Full 17.2% social charges apply; no Brexit-style cap exists for US residents.
- The US-France treaty mainly delivers a foreign tax credit on the federal return.
- State tax (California, New York) and the 3.8% NIIT sit outside the credit basket.
- SCI ownership requires a PFIC check before the sale, not after.
Frequently asked questions
Does the US-France tax treaty waive the French representative requirement?
No. The treaty allocates taxing rights and prevents double taxation; it does not override the procedural French rule that requires an accredited fiscal representative for non-EU sellers above the €150,000 threshold. You still need to appoint one before the deed.
Can I claim the French CGT and social charges as a foreign tax credit on Form 1116?
The 19% income-tax CGT is a creditable income tax under most readings. The 17.2% social charges are a longer story; the IRS has historically taken inconsistent positions, and a 2019 court decision in favour of taxpayers led many US filers to credit them as well. Co-ordinate with a US tax preparer who knows the French file.
Do I report the sale to the IRS even if no US tax is owed after the credit?
Yes. The gain is reported on Schedule D, the foreign tax credit is computed on Form 1116, and any depreciation recapture from a US-rented property is its own line. The fact that the credit zeroes out the US tax does not remove the filing.
Are PFIC rules a risk if I owned the French property through an SCI?
An SCI that holds rental property and elects French income-tax transparency is usually treated as a partnership for US purposes, which avoids PFIC. An SCI that has elected French corporate tax (impôt sur les sociétés) can be a PFIC, with severe US consequences. Confirm the SCI tax status in writing before the sale.