Return to previous page
Real estate news
The new rules for real-estate capital gains since 02/01/12
The year 2012 was marked by an important change in terms of capital gains for secondary residences. Indeed, so far, the calculation of capital gains enjoyed a regime of gradual decrease from the 6th year and after the 15th year, the buildings sold were outside the scope of this tax.
Now, properties are outside the scope of this tax only after 30 years, and the gradual decrease is very slow at the beginning.
For example, a property held for 10 years used to benefit of a 50% reduction. As of 02/01/12 this reduction will be only 10%.
The worst case is when the owner has the goods for 15 years. Indeed, if yesterday the seller benefits a full exemption from capital gains, with the new system, he will only benefits from a reduction of 20%.
This change in the allowance related to the duration of detention also affects both the French owners that foreign owners.
It should be noted that the decrease of the reduction is even more detrimental than the rate of taxation (including social contributions) for French residents increased from 28.1% to 31.3% in 2010 to 01/01/11 and to 32.5% from 10/01/11.
For european residents the rate of the tax is now of 19% (instead of 16% in 2010) and for non european residents, the rate of the capital gains is still at 33,33% (no change).
Remove also the standard allowance of 1 000 €uros.
The year 2012 was marked by an important change in terms of capital gains for secondary residences. Indeed, so far, the calculation of capital gains enjoyed a regime of gradual decrease from the 6th year and after the 15th year, the buildings sold were outside the scope of this tax.
Now, properties are outside the scope of this tax only after 30 years, and the gradual decrease is very slow at the beginning.
For example, a property held for 10 years used to benefit of a 50% reduction. As of 02/01/12 this reduction will be only 10%.
The worst case is when the owner has the goods for 15 years. Indeed, if yesterday the seller benefits a full exemption from capital gains, with the new system, he will only benefits from a reduction of 20%.
This change in the allowance related to the duration of detention also affects both the French owners that foreign owners.
It should be noted that the decrease of the reduction is even more detrimental than the rate of taxation (including social contributions) for French residents increased from 28.1% to 31.3% in 2010 to 01/01/11 and to 32.5% from 10/01/11.
For european residents the rate of the tax is now of 19% (instead of 16% in 2010) and for non european residents, the rate of the capital gains is still at 33,33% (no change).
Remove also the standard allowance of 1 000 €uros.
Holding period |
Reduction with the deed before 02/01/12 |
Reduction with the deed after 02/01/12 |
Difference of reduction |
1 an |
0% |
0% |
0% |
2 ans |
0% |
0% |
0% |
3 ans |
0% |
0% |
0% |
4 ans |
0% |
0% |
0% |
5 ans |
0% |
0% |
0% |
6 ans |
2% |
10% |
8% |
7 ans |
4% |
20% |
16% |
8 ans |
6% |
30% |
24% |
9 ans |
8% |
40% |
32% |
10 ans |
10% |
50% |
40% |
11 ans |
12% |
60% |
48% |
12 ans |
14% |
70% |
56% |
13 ans |
16% |
80% |
64% |
14 ans |
18% |
90% |
72% |
15 ans |
20% |
100% |
80% |
16 ans |
22% |
100% |
78% |
17 ans |
24% |
100% |
76% |
18 ans |
28% |
100% |
72% |
19 ans |
32% |
100% |
68% |
20 ans |
36% |
100% |
64% |
21 ans |
40% |
100% |
60% |
22 ans |
44% |
100% |
56% |
23 ans |
48% |
100% |
52% |
24 ans |
52% |
100% |
48% |
25 ans |
60% |
100% |
40% |
26 ans |
68% |
100% |
32% |
27 ans |
76% |
100% |
24% |
28 ans |
84% |
100% |
16% |
29 ans |
92% |
100% |
8% |
30 ans et + |
100% |
100% |
0% |
