If you’re thinking of selling property in France, whether it’s a second home in Provence or an apartment in Paris, there’s one thing you absolutely must consider: French capital gains tax. This often overlooked aspect of the property sale process can have a significant impact on your profits — especially if you’re a non-resident or a former resident of France.
Understanding how capital gain is calculated, how it’s taxed in France, and what exemptions may apply can help you plan your sale more effectively and avoid unpleasant surprises from the French tax authorities. Whether you’ve owned your property in France for a few years or several decades, the rules around capital gains tax in France are detailed, and sometimes confusing.
This article will walk you through 11 essential things you need to know — from who pays, to what’s exempt, to how much tax you can legally avoid. Whether you’re still living in France or managing your international property from abroad, you’ll find practical guidance and expert-backed strategies to reduce your tax liabilities and keep more of your capital gain.
Ready to sell smarter? Let’s dive in.
Understanding capital gains tax in France
What is capital gain and how is it taxed in France?
When you sell a property for more than you originally paid, the profit you make is called a capital gain. In France, this capital gain is subject to a specific tax regime separate from regular income tax. This system applies whether you are a resident in France or a non-resident, as long as the property being sold is located in France.
The french capital gains tax system combines two elements:
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A fixed tax rate of 19% applied to the capital gain
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Social charges, which add an additional 17.2%, bringing the total burden up to 36.2%
So, if you sell a French property with a €100,000 profit, you could be looking at €36,200 in taxes — unless you’re eligible for exemptions or taper relief.
It’s important to note that capital gains tax in France is not applied in every case. There are numerous variables, such as length of ownership, use of the property, and your tax residency, that can significantly alter the tax rate or eliminate the tax liability entirely.
When does the French capital gains tax apply?
French law requires you to pay capital gains tax when a sale of property results in a capital gain, and that property is not your primary residence at the time of sale. If it’s a second home, rental property, or even an inherited asset you didn’t live in, you’re subject to capital gains tax on any gain made since the acquisition.
In general, French tax authorities will evaluate:
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Date of purchase and sale
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Acquisition cost (purchase price + notary fees + renovation work)
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Sale price
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Applicable deductions, such as improvement costs and ownership period relief
Whether you’re living in France, have moved outside France, or are simply a non-resident who kept a second home, this tax is applied based on the French property’s location — not your current country of residence. That’s why even UK property owners or former French residents may still be liable for capital gains tax in France.
There are exceptions. If the property is your main residence, or if certain ownership duration thresholds are met, you may be exempt from capital gains tax. We’ll explore these in later sections.
In short: If you’re selling real estate in France, and you’re not occupying it as your primary home at the time of sale, expect to pay capital gains tax, unless you qualify for exemptions or taper relief.
Who must pay capital gains tax in France?
Tax obligations for residents of France
If you are a tax resident in France, you are automatically subject to capital gains tax on the sale of property, whether it’s located in France or abroad. However, in practice, the capital gains tax in France most often applies to second homes, rental properties, or inherited properties that are not used as your main residence.
French residents benefit from a few advantages. For example, if the property is your primary residence, and you’re living in it at the time of sale, you are exempt from capital gains tax. This is one of the most significant tax exemptions available and applies even if you’ve only owned the property for a short time — provided it was your actual home.
If the property is a second home or investment property, however, the gain will be taxed. As a resident of France, your tax will include:
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19% income tax on the capital gain
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17.2% social charges
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Potential additional tax for very large gains (e.g., gains above €50,000)
This combined structure means residents face a high effective tax rate unless they’ve held the property for a long time and qualify for ownership-based abatements.
Rules for non-residents and former residents
Non-residents often assume that if they no longer live in France, they are free from French tax obligations. Unfortunately, that’s not the case. If you’re a non-resident and you own property in France, any capital gain made on its sale will still be taxed in France under domestic law.
The french tax authorities consider the location of the real estate in France as the basis for capital gains tax liability — not your nationality or where you currently live. That means even if you moved to the UK or the United States, or if you’re living outside France for work or retirement, your property sale may still generate tax due in France.
For former residents of France, there may be specific exemptions if the sale occurs within a certain window after leaving France. For instance, if you sell your home within 10 years of moving abroad, and it was your principal residence at the time of departure, you may be also exempt from capital gains under certain conditions. However, such exemptions are tightly regulated and should be reviewed with a tax advisor.
Moreover, non-residents are often required to appoint a representative accredited by the French tax authorities to handle the tax declaration and ensure the tax is applied correctly. This requirement kicks in when the property sale value exceeds €150,000, or when the seller is from a non-EU country.
Important: Non-residents may still be taxed in both countries unless a tax treaty applies — we’ll explore this further in the section on double taxation.
How the French tax authorities calculate your capital gain
Calculating the sale price and acquisition cost
The capital gain is calculated as the difference between the sale price of your property in France and its acquisition cost. But this isn’t just a simple subtraction. The French tax authorities apply a number of adjustments to both sides of the equation.
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The sale price is the final price agreed upon by the buyer and seller, minus certain costs paid by the seller (like agency fees or diagnostics, if applicable).
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The acquisition cost includes the price you originally paid for the property, plus notary fees, registration taxes, and agency fees. If no documentation is available, a flat 7.5% of the purchase price can be added as a notional acquisition cost.
Improvements made to the property can also be added to the acquisition cost — provided they’re documented, substantial (not simple maintenance), and performed by professionals. For example:
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Major renovations (roofing, plumbing, extensions)
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Upgrades to meet energy performance standards
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Installation of permanent features like kitchens or heating systems
For older properties, if no receipts are available, you can apply a standard deduction of 15% of the original purchase price, but only if you’ve held the property for more than 5 years.
This calculation directly affects the amount of capital gains, and thus your tax liabilities.
Deductible expenses and renovation costs
To minimize the capital gains tax, it’s essential to document all deductible expenses related to the ownership of the property. These may include:
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Structural renovations or professional improvements
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Legal fees, including inheritance and transfer-related costs
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Certain expenses related to property management, especially for rental properties
Note that routine maintenance (painting, cleaning, replacing broken fixtures) does not qualify as a deductible expense. The work must add value or extend the life of the property.
By properly accounting for all eligible expenses, you reduce the net capital gain, which in turn reduces your capital gains tax due. This is where a tax advisor can help, particularly in distinguishing between acceptable and non-acceptable deductions under French tax rules.
In summary:
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The higher your acquisition cost, the lower your capital gain
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Keeping receipts for improvements can significantly reduce tax payable on the sale
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Using standard deductions (like 7.5% or 15%) is allowed but may not always be optimal
What is the tax rate on capital gains in France?
Standard capital gains tax rate and income tax
In France, the standard capital gains tax rate on the sale of real estate is structured in two layers:
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A flat income tax rate of 19%
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A supplementary social charge of 17.2%
This brings the total to 36.2% in most cases. These rates apply whether you’re a resident in France or a non-resident, unless you qualify for special exemptions or taper relief (explained in the next section).
There is also an additional surtax for very high capital gains — starting at €50,000 of net gain, with rates ranging from 2% to 6% depending on the amount of profit. This surtax is imposed on top of the standard rates.
Let’s break it down with an example:
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Sale price: €400,000
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Acquisition price + allowable costs: €300,000
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Capital gain: €100,000
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Tax due: €19,000 income tax + €17,200 social charges = €36,200
If your capital gain exceeds the €50,000 threshold, an extra €2,000 to €6,000 could be added, depending on the exact amount.
Social charges and their impact
Social charges — prélèvements sociaux — are a significant and sometimes misunderstood component of capital gains tax in France. They currently stand at 17.2%, but there’s a catch for non-residents.
If you’re a non-resident and affiliated to the French social security system, these charges apply in full. However, following EU rulings (notably for UK residents with an S1 certificate or those not covered by French health care), you might be eligible for a reduced rate or full exemption from certain social charges.
In such cases, the rate can drop significantly — potentially to around 7.5%, depending on your tax residency and whether you’re affiliated to the French social security system or another EU/EEA equivalent.
To claim this, you often need to:
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Provide documentation proving you’re not affiliated with French social security
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Hold an S1 certificate (for pensioners receiving income from another EU country)
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Be tax resident in a country with reciprocal agreements (like the UK, post-Brexit, under certain conditions)
It’s essential to confirm this with your notaire and possibly a tax advisor, as the rate of 7.5% is not automatic and must be requested with proof.
Key takeaway:
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The combined tax rate is typically 36.2%, but this can be reduced with exemptions or special status
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Social charges are often negotiable for non-residents depending on EU/EEA agreements and your social security status
Tax exemptions and reductions based on ownership duration
Full exemption after 22 and 30 years
One of the most advantageous aspects of the French capital gains tax system is the exemption from capital gains tax based on how long you’ve owned the property. The French government rewards long-term ownership by applying taper relief, which gradually reduces your capital gain subject to tax the longer you hold onto the property.
Here’s how it works:
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After 22 years of ownership, you are fully exempt from the 19% income tax portion.
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After 30 years of ownership, you are fully exempt from the 17.2% social charges as well.
This means that if you’ve owned your french property for over 30 years, your property sale will generate no capital gains tax liability — regardless of whether you’re a resident or a non-resident.
The property held for 10 years or more will already benefit from partial reductions, but the full relief only applies after 22 or 30 years, depending on the tax layer.
Example:
Let’s say you bought a second home in 1990 and sell it in 2025. Since you’ve held the property for 35 years, you’re also exempt from capital gains — both income tax and social charges. The tax due would be €0, regardless of the amount of gain.
The taper relief system explained
The taper relief (abattement pour durée de détention) works through a progressive reduction rate applied each year after the 5th year of ownership. This applies separately to the income tax portion and the social charges.
Here’s how the abatements apply:
For income tax (19%):
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6% per year from year 6 to 21
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4% in year 22
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Full exemption from year 23 onward
For social charges (17.2%):
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1.65% per year from year 6 to 21
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1.60% in year 22
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9% per year from year 23 to 30
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Full exemption from year 31 onward
This tapering is automatic and calculated by the notaire. It can drastically reduce your capital gains tax due, especially if you’ve owned the property for over 15 years.
Important notes:
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The calculation is based on the date of acquisition (when the purchase is completed and registered).
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If the property was inherited or gifted, the holding period is considered from the date the donor or deceased acquired it.
Key takeaway: The longer you keep your property in France, the less you’ll owe in capital gains tax — and after 30 years, you may owe nothing at all.
When can you be exempt from capital gains tax?
Selling your main residence
The most well-known — and most generous — exemption from capital gains tax in France applies when you sell your main residence. If the property you are selling is your principal home at the time of sale, you are fully exempt from capital gains tax and social charges, regardless of the amount of capital gains or how long you’ve owned it.
To qualify, you must prove:
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The property is your main home, meaning you live there permanently
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It was occupied as your principal residence up to the moment of sale
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It has not been used as a rental property or second home
For residents of France, this exemption is relatively straightforward. But for non-residents or former residents of France, the situation is more complex. If you left France but still owned your former main residence, you may still qualify for the exemption if:
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The property was your principal residence at the time you left France
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The sale occurs within 12 months of leaving
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You did not rent the property during that time
This exception is particularly relevant for French citizens or EU nationals who moved outside France, then sold their former home.
Important: You must not have another main residence elsewhere that you claim tax relief on, and the exemption is only valid once per person per property.
Special exemptions for second home sales
Under certain circumstances, you might be also exempt from capital gains even when selling a second home — although these are more limited. Some cases include:
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Low-income retirees who are not subject to wealth tax, and use the proceeds to buy a main residence
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Sellers who haven’t owned their main home for four years prior, and reinvest the proceeds into purchasing one
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Certain sales below €15,000 (very rare in the current market)
One key case is when a non-resident sells their former main residence in France. If they sell it within 10 years of leaving, they may be eligible for a partial exemption, provided they were tax resident in France for at least two years prior, and have no other home ownership in France.
In some cases, capital gains tax is payable initially but can later be refunded upon proof of exemption eligibility. This makes proper documentation — and professional guidance — crucial.
Summary of exemption triggers:
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Property was your main residence at time of sale
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You’re a former resident meeting post-departure conditions
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You are a low-income seller using the funds for a new primary home
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The sale falls under one of the specific legal exemptions
Remember: Every situation is unique. Before assuming you’re exempt from capital gains tax, consult a tax advisor to confirm your eligibility under the current French tax rules.
How non-residents declare and pay capital gains tax
The role of a fiscal representative
If you’re a non-resident selling property in France, you may be required to appoint a fiscal representative accredited by the French tax authorities. This representative ensures that your capital gains tax obligations are correctly calculated, declared, and paid to the state.
The appointment of a representative is mandatory if:
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The sale price is above €150,000, and
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You are not a tax resident of a country within the European Union (EU), European Economic Area (EEA), or a territory with a tax treaty ensuring sufficient information exchange with France.
This representative is usually a certified accountant, lawyer, or specialized firm that handles the tax declaration and ensures full compliance. They act as a liaison between you and the French tax authorities, which is essential if there’s an audit or post-sale issue regarding the amount of capital gains.
While hiring a representative incurs a cost (often a percentage of the property sale), it protects you from potential penalties and administrative delays.
Tax declaration and withholding at the notaire’s office
In France, notaires (public officials responsible for property sales) play a central role in collecting and forwarding taxes due at the time of sale. They’re responsible for:
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Calculating the capital gain
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Applying any relevant taper relief or exemption
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Withholding the applicable capital gains tax and social charges
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Transferring the tax paid to the relevant French authorities
Even if you’re a non-resident, the capital gains tax is payable at the point of sale. The notaire will typically deduct the amount directly from the proceeds and handle the tax declaration on your behalf — in coordination with your representative, if applicable.
Documents typically required:
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Original purchase deed and proof of purchase price
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Invoices for qualifying renovation works
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Notarised proof of ownership duration
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Evidence supporting any exemption from capital gains tax
Once the tax is paid, you’ll receive a confirmation — important for your records and any future dealings with your home country’s tax authorities (especially where tax treaties apply).
In essence:
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The capital gains tax applies at the point of sale
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Non-residents must often appoint a tax representative
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The notaire manages calculation, declaration, and tax paid in France
Double taxation: Do you pay tax in both countries?
The role of tax treaties
If you’re a non-resident selling property in France, you may worry about being taxed twice — once by the French tax authorities, and again by your home country’s tax authorities. This is where tax treaties come into play.
France has signed double taxation agreements with many countries, including the United Kingdom, United States, Canada, and most EU countries. These treaties determine which country has the right to tax the capital gain, and how to avoid paying twice on the same income.
Generally, under these agreements:
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France retains taxing rights on real estate located on its soil
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Your home country must provide a foreign tax credit for the tax paid in France
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You declare the capital gain in both countries, but you don’t pay full tax twice
For example, if you’re a UK resident, you’ll pay capital gains tax in France, and then declare the gain to the UK tax authorities. The UK will credit you for the tax already paid to France — meaning you only pay any difference, if the UK rate is higher.
However, to benefit from treaty protection, it’s crucial to:
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Submit the proper tax declaration in your home country
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Keep evidence of French tax paid (receipts from notaire, tax certificate)
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Apply for the foreign tax credit in accordance with your country’s tax rules
Failure to follow these procedures correctly can lead to delays or denial of credit — potentially resulting in tax in both countries.
How to avoid double taxation as a non-resident
To avoid being taxed in both France and your country of residence, follow these best practices:
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Know the treaty rules: Check your country’s tax treaty with France and understand how capital gains are treated. Not all treaties are the same.
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Use a tax advisor: A cross-border tax advisor can ensure you comply with both countries’ tax systems and maximize your allowable credits.
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Keep detailed records: Save all documents showing the property sale, amount of capital gains, and tax paid in France.
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File on time in both countries: Declare the gain in France at the time of sale, and again in your home country during the appropriate tax year.
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Understand social charge implications: Social charges aren’t always treated as income tax by your home country, which may affect credit eligibility. In the UK, for example, only the 19% income tax may be creditable — not the 17.2% social charges.
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Stay alert for treaty overrides: Post-Brexit changes or international tax law shifts could affect treaty interpretations — particularly for UK property owners or EU expatriates living in France.
Bottom line: Thanks to international tax agreements, you generally won’t be double taxed, but you must actively claim the credit and follow the rules — otherwise, you could end up paying more than necessary.
How to reduce or avoid paying capital gains tax
Strategic planning and timing
One of the most effective ways to reduce or even avoid capital gains tax in France is through smart timing and long-term planning. The French tax system rewards ownership over time, so delaying a sale can often lead to significant tax savings.
If you’re approaching 22 or 30 years of ownership, it may be worth holding on a little longer. After:
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22 years, you’re exempt from income tax
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30 years, you’re also exempt from social charges
This exemption from capital gains tax is automatic — no application needed, as long as the holding period is properly documented.
Example:
Let’s say your property is a second home, and you’ve owned it for 20 years. Selling now might trigger a significant capital gains tax liability, but waiting two more years could result in zero income tax. Add eight more, and you could escape social charges too.
Legal tax optimization techniques
Beyond waiting, there are legal strategies that can help reduce the capital gains tax on your property sale:
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Increase your acquisition cost through documented renovations.
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Keep invoices and contracts for major work — improvements, not maintenance.
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If held over 5 years, you can choose a flat 15% deduction instead of invoices.
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Use the main residence exemption smartly.
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If you move into a second home and make it your primary residence, then sell, you might qualify for full exemption. Timing is critical.
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Split ownership between spouses or heirs.
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Gifting shares of the property before sale can divide the capital gain across multiple taxpayers — sometimes lowering the overall tax liabilities.
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Consider selling via an SCI (Société Civile Immobilière).
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While complex, a properly structured SCI may allow flexibility in managing ownership and tax exposure — especially for rental properties or international property holders.
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Apply social charge exemptions for non-residents.
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If you’re not part of the French social security system, you may qualify for a lower rate of 7.5% instead of 17.2%. Documentation such as an S1 certificate may be required.
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Sell in a low-tax year.
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If you’re also liable for income tax in your home country, selling during a year with little or no other income may reduce overall tax burdens.
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Seek help from a tax advisor.
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A qualified tax advisor can help you identify opportunities specific to your situation — especially if you’re dealing with multiple tax jurisdictions.
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Note: Any attempt to reduce your capital gain through artificial maneuvers (e.g. under-declaring the sale price, hiding renovation costs) is likely to be flagged by the French tax authorities. Legal planning is smart. Tax evasion is not.
In summary:
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Timing is key — longer ownership = less tax
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Legal deductions and exemptions can dramatically lower your bill
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Always get professional advice, especially as a non-resident
Selling property held in an SCI or as a rental
Special considerations for SCI-owned property
An SCI (Société Civile Immobilière) is a French legal structure commonly used by families or investors to own real estate in France. If you hold your property in France through an SCI, selling it introduces additional layers of capital gains tax complexity.
When a property is held by an SCI, the tax treatment depends on whether the SCI is:
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Transparent (non-commercial) — each shareholder is taxed individually on their share of the capital gain, or
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Subject to corporate tax — in which case the CGT tax is applied at the corporate level, not the personal one.
In most cases, especially for family-owned SCIs, the entity is fiscally transparent, and capital gains tax is applied to the shareholders based on their portion of the sale.
Key tax implications:
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The capital gains are calculated as usual, based on acquisition price and deductions
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Shareholders must declare the capital gain in their personal tax returns (French or foreign, depending on residence)
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Taper relief still applies based on property ownership duration, not the SCI’s age
However, if the SCI is deemed commercial or opted for corporate tax, different rules apply, including no taper relief, and the corporate income tax rate is used instead — which can be far less favorable.
Important note: Non-resident shareholders may still be required to appoint a representative accredited by the French tax authorities, depending on their country of residence.
Rental properties and their tax treatment
If the property in France being sold was used as a rental investment, the treatment of capital gain follows the same rules — but with a few added considerations:
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The rental activity does not disqualify you from taper relief or exemptions
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However, any depreciation applied (in SCI or corporate structures) may increase your capital gain, as it reduces the book value of the property
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Improvements done to prepare the property for rent (e.g. new bathroom, heating) may be deductible if well documented
In the case of furnished rentals (LMNP or LMP status), things get more complicated. These activities may trigger classification as a business, which could subject the sale to professional capital gains tax rules — with completely different rates and rules.
Whether you sell via an SCI, or dispose of a rental property held in your name, accurate documentation of:
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Purchase and sale prices
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Rental income over time
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Improvements and costs
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Length of ownership
…is critical to minimize capital gains tax and avoid issues with the French tax authorities.
Takeaway:
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SCIs don’t eliminate capital gains tax, but may offer planning flexibility
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Rental properties follow standard rules, but furnished rentals could be taxed differently
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Get professional help to navigate these more complex ownership structures
Real examples: Tax outcomes for residents vs non-residents
Case study: UK resident selling a second home in France
Let’s imagine Sarah, a UK citizen who purchased a second home in Provence in 2005 for €200,000. She used it for holidays and never rented it out. In 2025, she sells the property for €400,000, generating a capital gain of €200,000.
Since Sarah is a non-resident, here’s how her capital gains tax in France would be calculated:
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She held the property for 20 years, so she benefits from:
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72% relief on the income tax portion
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36% relief on the social charges
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Her taxable base becomes:
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Income tax: €56,000 (€200,000 – 72%)
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Social charges: €128,000 (€200,000 – 36%)
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Tax due:
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Income tax: 19% of €56,000 = €10,640
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Social charges: 17.2% of €128,000 = €22,016
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Total tax: €32,656
Since Sarah lives in the UK, she must also declare the gain to UK tax authorities. However, under the France–UK tax treaty, she’ll receive a foreign tax credit for the tax already paid in France. She only pays any additional tax if the UK rate exceeds the French one (which is unlikely for property sales).
If she had sold just two years later (2027), she would have hit the 22-year threshold, making her fully exempt from income tax in France — saving over €10,000.
Case study: French resident selling a rental apartment
Now meet Pierre, a resident in France, who bought a rental apartment in Lyon in 2012 for €150,000. He made €50,000 worth of documented renovations and rented the unit out for 10 years. In 2025, he sells it for €280,000, generating a capital gain of €80,000 after deducting acquisition costs and renovations.
Pierre has held the property for 13 years, and benefits from:
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48% relief on the income tax portion
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10.6% relief on the social charges
His taxable base is:
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Income tax: €41,600
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Social charges: €71,680
Tax owed:
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Income tax: 19% of €41,600 = €7,904
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Social charges: 17.2% of €71,680 = €12,331
Total tax: €20,235
Since Pierre is a tax resident in France, he declares this on his income tax return, along with other earnings. His rental income during the ownership period was taxed annually, so it’s separate from the capital gains.
If Pierre had sold the property in 2034, he would have surpassed the 22-year threshold and been exempt from capital gains tax and social charges — illustrating how timing can dramatically impact your tax liability.
Conclusion: Key takeaways on French capital gains tax
Selling a property in France as a non-resident or resident can feel overwhelming — but it doesn’t have to be. With the right understanding of capital gains tax, how it’s calculated, and how exemptions and taper relief apply, you can significantly reduce what you owe — or avoid capital gains tax altogether.
Whether you’re a retiree looking to cash out, a long-term owner of a second home, or managing a rental property through an SCI, the keys are timing, documentation, and expert guidance. Don’t let avoidable mistakes cost you thousands.
Here’s what to remember:
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Capital gains tax in France is composed of a 19% income tax and 17.2% social charges — totaling 36.2%.
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You are taxed in France on the sale of French property, even as a non-resident.
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Taper relief significantly reduces tax based on ownership duration — full exemption from:
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Income tax after 22 years
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Social charges after 30 years
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Your main residence is usually exempt from capital gains tax — but you must meet strict conditions.
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Renovation costs and notary fees can increase your acquisition cost, lowering taxable capital gain.
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Non-residents must often appoint a representative accredited by the French tax authorities.
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Tax treaties protect you from being taxed in both countries, but only if properly declared.
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Social charge reductions may apply if you’re not affiliated to the French social security system.
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Selling through an SCI or as a rental property adds complexity — but also planning opportunities.
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Timing your sale strategically can result in major tax savings.
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Always consult a tax advisor with knowledge of both French and international tax rules.
By preparing ahead, documenting every cost, and understanding the nuances of french capital gains tax, you can protect your investment — and keep more of your hard-earned gains.
FAQs: French capital gains tax on property sales
Do I have to pay capital gains tax in France if I live abroad?
Yes. If you sell a property located in France, you are taxed in France on the capital gain, even if you are a non-resident. France taxes gains from the sale of real estate within its borders regardless of where the seller lives.
How much capital gains tax will I pay when selling French property?
You’ll typically pay 19% income tax plus 17.2% social charges, totaling 36.2%. However, this amount can be reduced through taper relief (based on how long you’ve owned the property) or eliminated entirely after 22 or 30 years.
Can I avoid paying capital gains tax in France?
Yes, in certain cases. You can avoid paying capital gains tax if:
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The property is your main residence at the time of sale
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You’ve owned the property for over 30 years
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You qualify under special exemptions (e.g. low income, reinvestment in main home)
Always check with a tax advisor to confirm eligibility.
Do I have to declare the French property sale in my home country?
Yes. You must also declare the capital gain in your country of residence. However, under tax treaties, most countries will credit you for the tax paid in France, helping avoid double taxation.
What if my French property is held in an SCI?
If your property is held in an SCI, the capital gains tax is calculated based on your share of the property. If the SCI is fiscally transparent, each partner declares their portion. Corporate SCIs may be taxed differently — consult a professional for accurate treatment.
Can I deduct renovation costs from my capital gains?
Yes. Substantial and documented improvement works can be deducted from your capital gain. You must provide invoices from professionals. If the property has been owned for more than 5 years, you may opt for a flat 15% deduction instead.
