Property capital gains in France: calculation, allowances and exemptions in 2026
How are property capital gains taxed in France in 2026? Rates, holding-period allowances, exemptions and the furnished rental (LMNP) case.
Gaston michelin
Agent immobilier
Selling a second home or a rental property? The capital gain can be heavily taxed, or not at all. It all depends on how long you have held the property, its type and your situation. Understanding the mechanism helps you choose the right time to sell.
How it is calculated
The gross gain is the difference between the sale price and the purchase price. The purchase price can be increased by:
acquisition costs: actual amount, or a flat 7.5% of the purchase price;
works: actual amount backed by invoices, or a flat 15% of the purchase price if you have owned the property for more than five years.
These flat rates are often very favourable, especially for a property bought long ago.
Rates in 2026
The net gain is subject to income tax at 19% and social charges at 17.2%, i.e. 36.2% in total before allowances.
Good news: the 2026 increase in CSG on investment income, which raises social charges to 18.6%, does not apply to property capital gains. They remain at 17.2%.
Above €50,000 of taxable gain, an additional surtax of 2 to 6% applies (excluding building land).
Holding-period allowances
The longer you keep the property, the less you pay:
Income tax: fully exempt after 22 years (6% allowance per year from year 6 to 21, then 4% in year 22).
Social charges: fully exempt after 30 years (progressive allowance that accelerates sharply after 22 years).
Between 22 and 30 years, only social charges remain due, on a reduced base. Waiting a few more months can sometimes save several thousand euros.
Main exemptions
Main residence: fully exempt, with no minimum holding period. It must be your main residence on the day of sale (a reasonable delay is allowed if you have already moved out).
First sale of another home: if you have not owned your main residence in the previous four years and reinvest the proceeds in your main residence within 24 months.
Sales of €15,000 or less, such as a parking space.
Certain retired or disabled people on modest incomes.
LMNP investors: be careful
Since 2025, depreciation deducted during furnished letting is added back when calculating the gain on resale. The purchase price is reduced accordingly, and the gain increases. A point to factor into any exit strategy.
Plan the sale ahead
The notary calculates and collects the tax at signing. But the calculations should be done beforehand: choosing the sale date, gathering works invoices, comparing with the flat rates.
LGH Patrimoine helps you value your property and measure what you will actually keep after tax. For complex situations, we work with your notary or tax adviser.
