Why there are two tapers
The 2013 reform split French real-estate CGT into two legally distinct bases. The first is the income-tax gain, governed by Article 150 V D of the French tax code. It is reduced by 6% per year from year six to year 21, and by an additional 4% in year 22, reaching a full exemption after 22 years of ownership. The second is the social-charge base, governed by Article L136-7 of the social-security code. It is reduced at a much slower pace, 1.65% per year from year six to year 21, then 1.6% in year 22, then 9% per year from year 23 to year 30, where it finally reaches zero. The two clocks run in parallel on the same property; the seller gets whichever point each curve has reached on the day of the deed.
The two curves side by side
Seeing the two tapers on the same axis clarifies why the headline 22-year exemption is never the whole story for a non-resident seller. At year 22 the income-tax CGT is zero, but the social-charge base is still reduced by only 48%; more than half of the base is still taxable at either 7.5% or 17.2%. The gap closes only slowly between year 22 and year 30. For a property sold at year 25, the income-tax bill is nil but the social-charge bill is still roughly one fifth of the gross gain at the 17.2% rate.
View data as table
| Holding period | Gain reduction for income tax |
|---|---|
| 5 years | 6% |
| 10 years | 36% |
| 15 years | 66% |
| 17 years | 78% |
| 20 years | 96% |
| 22 years | 100% |
| 25 years | 100% |
| 30 years | 100% |
View data as table
| Holding period | Base reduction for social charges |
|---|---|
| 5 years | 1.65% |
| 10 years | 8.25% |
| 15 years | 24% |
| 17 years | 32.25% |
| 20 years | 42% |
| 22 years | 48% |
| 25 years | 72% |
| 30 years | 100% |
The mechanics of the annual step
The taper steps are applied at each anniversary of the acquisition, not on a pro-rata daily basis. Year one to year five is a flat zero: you pay on the full gain. Year six opens the first annual step, and every subsequent completed year adds a further increment until the curve plateaus. For the income-tax side, missing an anniversary by a week is the same as missing it by a year; the schedule does not prorate within the year. For the social-charge side, the same whole-year rule applies, with smaller steps that also never prorate. Representatives track this calendar to the day, because the gap between the two sides of an anniversary can move the net proceeds by more than the representative's own fee.
Reading the table in your file
The representative will hand you a one-page worksheet with three numbers: your raw gain, the income-tax taper applied, and the social-charge taper applied. The two reductions are never averaged; each runs against its own base. Ask for the worksheet in writing and keep it in your records. If the French administration opens a verification later, the first thing they look at is the taper arithmetic, because a wrong year count is the most common source of minor reassessments on non-resident files.
Worked example at year 17
A US resident sells a Provence farmhouse bought in 2008 for €290,000, with €40,000 of documented renovations, for €540,000 in 2026. Raw gain: €210,000. Income-tax taper at year 17: 78%, so taxable income-tax gain is around €46,000. CGT at 19% is €8,740. Surtax on the taxable gain: around €0, since it sits just under €50,000. Social-charge taper at year 17: 32.25%, so the social-charge base is around €142,000. At 17.2% (the seller is a US resident), social charges are €24,424. Total tax: roughly €33,200. The same sale one day past the year-18 anniversary would have reduced the taxable income-tax gain to around €34,000 and the CGT to €6,460, saving about €2,280 on the income-tax side alone. One calendar day.
Pitfall to avoid
The pitfall is treating the 22-year and 30-year marks as absolute cliffs. They are endpoints; the curve is smooth in between. A seller who thinks a property held 21 years and 10 months has no CGT because the 22-year exemption is almost there is in for a bad surprise: the allowance at that point is 98%, not 100%, and the representative files on 98%. The arithmetic rewards every whole year crossed, including late in the schedule. Always check the year count on the deed date before quoting a net figure to a buyer or an heir.
Pro tip
On properties between year 15 and year 20, the marginal value of waiting one year is the highest. Each year adds 6 percentage points to the income-tax exemption (on a taxable gain still large enough to feel it) and 1.65 points to the social-charge exemption. On a €200,000 raw gain, one year saves roughly 6% × 19% + 1.65% × 17.2% × (current base proportion), typically €2,000 to €2,800 net. Few other deed-timing levers offer a return of this magnitude, and the paperwork is the same whether you sign on 15 June or 15 July.
Key takeaways
- Two tapers, two clocks: income-tax at 22 years, social charges at 30 years.
- Income-tax exemption: 6% per year from year 6 to 21, 4% in year 22, then 100%.
- Social-charge exemption: 1.65% per year from year 6 to 21, 1.6% in year 22, 9% per year from 23 to 30.
- The curves are smooth; a sale one day before an anniversary is materially more taxed than one day after.
- Inheritance clock starts at the opening of the succession, not at the publication of the attestation.
Frequently asked questions
Is the year counted from the acquisition date or from the start of ownership?
From the exact date of acquisition on the deed, counted in whole years. A sale signed one day before the anniversary loses the year; signed one day after, it captures the full extra year of allowance. Many representatives routinely check the anniversary calendar before locking the deed date.
Do renovations restart the holding-period clock?
No. Only a new acquisition (a sale then a repurchase) restarts the clock. Renovations and extensions increase the cost basis but do not reset the taper; a 25-year-old property with a recent €80,000 renovation still benefits from the 25-year relief on the full gain.
Does the taper apply to the surtax on high gains?
Yes, because the surtax runs on the taxable gain after the income-tax taper. A long-held property that falls close to full exemption pays little or no surtax, even on a nominally large gain, because the taxable component is small.
What about inherited property? When does the clock start?
The clock starts on the date of the succession opening (usually the date of death), not on the date the notaire publishes the attestation. For inter-vivos gifts, the clock restarts on the date of the gift. Keep the opening date handy; it often changes the answer by a year or two.