What the exemption is
Article 150 U II 2° of the French tax code carves out a specific benefit for people who used to live in France and kept their old home after leaving. When they later sell that home as non-residents, the taxable gain is exempt up to €150,000 per seller, provided a cluster of conditions is met. The idea is to avoid penalising mobility: an expatriation should not strip someone of the exemption they would have enjoyed had they sold the property the day they left. The rule does not reach as far as the full principal-residence exemption enjoyed by tax residents, but it is the closest thing available to a former resident, and on a modest gain it can bring the CGT to zero.
The four conditions to check
Four conditions must all be true at the signature of the new deed. First, the seller has to be a non-resident for French tax purposes at the time of the sale. Second, the seller must have been a French tax resident continuously for at least two years at any point before leaving. Third, the new country of residence must be either an EU or EEA member state, or a state outside those zones that has signed a tax-cooperation arrangement with France meeting the statutory standard (most large OECD jurisdictions qualify; several Gulf and Caribbean jurisdictions do not). Fourth, the property must have been at the free disposal of the seller since at least 1 January of the year preceding the sale; no paid rental during that window. Miss any one of the four, and the exemption is lost entirely for the year.
The €150,000 ceiling on the gain
The ceiling is expressed in taxable gain, not in sale price, and the arithmetic matters. Take the sale price, subtract the acquisition price and the deductible costs and works under the usual rules, then apply the relevant holding-period taper. What remains is the taxable gain. If that figure is below €150,000 per seller, the exemption wipes it out and the income-tax CGT is zero. If it is above, only the first €150,000 is exempt and the excess is taxed under the ordinary non-resident regime. For a couple selling jointly, each spouse carries their own €150,000 envelope, so the combined shield is €300,000 on a 50/50 ownership structure. Social charges follow the same logic: the exemption applies to both layers, up to the same ceiling.
Interaction with the representative and with the tapers
The former-resident exemption does not remove the obligation to appoint an accredited fiscal representative when the sale price per seller crosses €150,000. The two thresholds are named the same but they govern different things: one caps the exempt gain, the other triggers the representative requirement on the price. A former resident selling a €420,000 home with a €110,000 taxable gain still needs the representative on the price threshold, even though the gain falls comfortably inside the exempt envelope. The representative still files the 2048-IMM, only this time with a zero CGT line supported by a declaration that the four conditions are met. Holding-period tapers apply before the exemption is tested, so a long hold reduces the gain, then the exemption cancels what remains up to the ceiling.
Worked example
Paul and Claire lived in Lyon from 2007 to 2019, then moved to Canada for a new job. They kept their Lyon flat, left it unoccupied since early 2023, and decide to sell in 2026. Sale price €460,000, acquisition price €260,000 in 2007, deductible works and fees €45,000. Holding period at signature: 18 years. Taxable gain before taper: €155,000. After the income-tax taper at 18 years (22% still taxable, so 78% reduction), the base falls to €34,100 for each layer. Each spouse carries a €150,000 envelope, and their combined base of €34,100 sits far below. The former-resident exemption cancels both the income-tax CGT and the social-charge layer on the full amount. The representative is still appointed because the per-seller share of the price (€230,000) exceeds €150,000, and files a nil CGT with the supporting declaration. Net proceeds: the full sale price minus notarial costs and the representative fee, no CGT, no social charges.
Pitfall to avoid
The most frequent pitfall is letting the property be rented, even briefly, during the qualifying window. A six-week summer let on a short-stay platform the year before sale is enough to disqualify the exemption entirely, because the test is binary rather than prorated. Another common trap is assuming that any move out of France qualifies: only former residents who were tax-resident for at least two consecutive years before departure benefit. A short posting of eighteen months followed by relocation abroad does not meet the threshold, however attached the family may feel to the property.
Pro tip
If your property has been rented out for part of the post-departure period, stop the lease cleanly, let the property sit at your free disposal for the whole calendar year preceding the sale, and time the sale deed in the following year. One full unoccupied calendar year is the operative test; tighter timelines are risky. Keep evidence that the home was available to you: utility bills in your own name, a letter from the syndic, photos dated across the year. The representative will need that file if the tax office later queries the exemption, and the quitus fiscal delivered at signature does not preclude a control two or three years later.
Key takeaways
- Former residents can exempt up to €150,000 of taxable gain per seller on the sale of a former French home.
- Four conditions must all be met: non-resident at sale, two prior years of French residence, cooperating country, home free of rental.
- The deadline runs until 31 December of the tenth year after departure.
- The ceiling is on the gain, not on the price; each spouse carries their own envelope.
- Holding-period tapers apply first, the exemption cancels what remains up to the ceiling.
- The representative requirement above €150,000 per seller is separate and still applies.
Frequently asked questions
Can I use the former-resident exemption if I now live in a non-EU country?
Only if your country has a tax-cooperation arrangement with France that meets the statutory standard. The US, UK, Canada, and Australia all qualify; most Gulf jurisdictions and several offshore centres do not. The notaire and the representative will check the current list before applying the exemption.
How long do I have after leaving France to still qualify?
The deadline runs until 31 December of the tenth year following your departure, and the property must have been free of any rental to a third party since at least 1 January of the year before the sale. Miss either, and the exemption is lost on the gain above €150,000.
Is the exemption capped?
Yes, it applies to the taxable gain up to €150,000 per seller. Anything above that ceiling is taxed under the ordinary non-resident regime, with the usual tapers. For a couple selling jointly, each spouse has their own €150,000 envelope.
Does a short rental, for example on Airbnb, disqualify the exemption?
Any rental to a third party during the qualifying period disqualifies the exemption for the taxable year. The home has to remain at the free disposal of the owner or at most used by the immediate family. A single paid weekend can cost the benefit, so be strict with the calendar before you decide to sell.