The actual rate for the Capital Gain tax in France amounts to 34.5 % it includes 19 % of taxes on the Profit and another 15.5 % on social taxes.
It is essential to understand that Main residence are exonerated of CGT, therefore in the event a Property Owner resale the Property he has been leaving, no taxes would be required to be pad no matter the amount of profit made upon the resale.
THE CGT is applicable on the net profit. That is to say the difference between the Selling price minus Real Estate agent commission if any, any reminder of mortgage to be lifted, and the purchase price (added from the closing costs – stamp duties and notaries – works in the Apt if any, furniture…). Such profit is the taxed at 34.5 %.
On top of such rate, a special tax is due to be paid for a profit over 50 000 €. For each scale of 50 000 € profit there is an additional 1 % up to a maximum of 6 %.
In consequence in the event of a net profit after resale of:
– 30 000 € the tax rate would be 34.5 %
– 80 000 € the rate would be 35.5 %
– 160 000 € the rate would be 35.5%
– 250 000 € and more would be 40.5 %
However this additional tax is very likely to be canceled in 2016 or 2017 at the latest.
Finally it is to be noted that in the event the Real estate property located in France is hold by a company registered in an outside country of the EU, it will be subject to pay an annual tax of 3 % of the value of the property.