French Property Capital Gains Tax: Brackets and Allowances 2026

When selling real estate in France that is not your primary residence (such as a holiday home or a rental property), any profit made—known as property capital gains (plus-value immobilière)—is subject to French income tax and social security contributions.

Calculating the Gross Capital Gain

The starting point is subtracting the adjusted acquisition price from the adjusted sale price:

Gross Capital Gain = Sale Price - Acquisition Price

Legal Adjustments:

• The purchase price can be increased by actual acquisition costs (or a flat 7.5% estimate) and renovation expenses (or a flat 15% estimate if the property was held for more than 5 years).
• The selling price can be reduced by costs paid to secure the sale, such as compulsory diagnostic tests and agency fees.

Holding Period Relief (Abattements)

In France, capital gains tax is reduced the longer you own the property. There are two separate taper scales applied to the gross gain:

Income Tax (19% rate - 100% exempt after 22 years):

• Years 6 to 21: 6% reduction per year.
• Year 22: 4% reduction.

Social Security (17.2% rate - 100% exempt after 30 years):

• Years 6 to 21: 1.65% reduction per year.
• Year 22: 1.60% reduction.
• Years 23 to 30: 9.00% reduction per year.

Combined Tax Rate

After subtracting the holding period allowances, the remaining net gain is taxed at:

• 19% flat-rate income tax.
• 17.2% social security contributions. This results in a combined standard tax rate of 36.2%. An extra progressive tax (from 2% to 6%) is charged if the net gain exceeds €50,000.

To estimate your tax liability on a property sale in France, use our free online Property Capital Gains Tax Calculator.