Selling your French house: when do you need a tax representative?

When selling a French property, you may need to appoint a tax representative to calculate your Capital Gains Tax. Find out more from French Tax Online

If you are a British citizen and you are about to sell your property French property you may need to appoint a tax representative. We explore what a tax representative does and when you legally need one, below.

What is the role of a real estate tax representative?

The tax representative calculates the capital gain or loss related to the sale of your property and is in charge of all the tax procedures, by making and signing the forms required by the tax administration.

Moreover, they are committed to pay your taxes as well as any potential penalty if the tax administration questions the declaration.

What capital gains taxes may be applied when I sell my property?

1. An income tax of 19%

2. Social charges (CSG, CRDS, and additional taxes) – the rate depends on your country of origin

3. A 3% tax on the current value of the building for some companies

4. In some cases, there is tax on land that have become building spots

When do sellers have automatic exemption from appointing a tax representative?

1. When the seller is domiciled, established or constituted in a European Union member state, or in any other state that is a contracting party to the Agreement of European Economic Area, and with which France has signed certain conventions covering administrative assistance

2. Property sales that have a price lower or equal to €150,000.

3. Property sales that are exempt from added value with regard to income taxation and social charges that depend on the holding duration of the property (22 years for income taxation and 30 years for social charges)

You will have to appoint a tax representative if you are not in one these three conditions. Note that this appointment remains mandatory even when you make a capital loss.

Thus you’ll need to appoint a tax representative if you are a British citizen selling a French property.

When is appointing a tax representative a legal requirement?

If the seller is a non-French resident private individual then the appointment of a tax representative is mandatory when:

• the selling price is above €150,000

• the property is held for less than 30 years.

• independently of the amount of added-value a fortiori in case of loss in value

If the seller is a company or corporation registered outside of France then the appointment of a tax representative is mandatory in any case:

• no matter the selling price

• and the period of time in which the party have owned the property

If the seller is a company of persons registered in France and is not subject to company taxation then the following applies:

• If every associate is a physical person: the appointment of a tax representative is mandatory if the share held by non-French residents is above €150,000 and the property held for less than 30 years.

• If one of the associates is a corporation registered outside of France: the appointment of a tax representative is mandatory to this associate.

• If the associates are both physical persons and corporations registered outside of France: the appointment of a tax representative is mandatory to the foreign company; and for the associates that are physical persons, if the share held by non-residents is (taking into account all non-resident persons physical and moral) is above €150,000 and the property held for less than 30 years.

French Tax Online is a Certified Chartering Accountancy firm based in the South of France dedicated to providing its clients with a full accounting and company management service.