top of page
  • email
  • 5a4e2ef62da5ad73df7efe6e

Overseas Buyer Guide › Costs & Taxes › Selling Costs

AAriane · Paris

2026/06

Selling Property in Paris — Costs & Capital Gains Tax

For many owners, the visible cost of selling a Paris apartment appears limited: agency fees, technical diagnostics, and, in some cases, mortgage-release costs. In practice, however, the decisive factor is usually capital gains tax. This page explains the direct costs of sale, the logic of French real-estate capital gains tax, the impact of holding period and ownership structure, and the main optimisation principles for non-resident owners selling a €2M+ Paris apartment.

I. Direct selling costs

The direct costs borne by the seller are usually limited compared with the cost of acquisition. In most cases, the main items are agency fees, mandatory technical diagnostics, and, where applicable, mortgage-release costs.

1. Agency fees

Agency fees are set by the brokerage agreement and are usually borne by the seller. In the Paris market, a typical reference range is 3–5% of the sale price, with lower effective rates often applying to higher-value properties.

​

The asking price is often displayed as prix HAI, meaning agency fees are included in the headline price. For the seller, however, the fee is a direct deduction from net proceeds.

2. Mandatory technical diagnostics

Before completion, the seller must provide a statutory technical-diagnostics file (Dossier de Diagnostics Techniques, or DDT). The cost is borne by the seller.

​

Typical diagnostics may include:

  • Energy performance certificate (DPE)

  • Asbestos report, where relevant

  • Lead report, where relevant

  • Electricity and gas compliance reports, where relevant

  • Natural and technological risk report

  • Carrez-surface certificate for co-owned property

Indicative Paris reference for a standard apartment: €400–€900.

​

The DPE now carries more weight than in the past. Since low-rated properties face increasing rental restrictions, a poor DPE rating can also affect buyer perception and price negotiations.

3. Mortgage-release cost

If the property is still subject to a registered mortgage, the seller may need to pay for a formal mortgage release (main-levée d’hypothèque) at the time of sale. This cost is usually borne by the seller.

​

Indicative reference: approximately 0.3–0.8% of the remaining secured amount, including notarial and registration costs.

​

If the loan has already been repaid and the mortgage has naturally expired, this cost may not arise.

4. Notarial fees on the seller side

In a standard French resale transaction, the seller does not generally pay the notarial fee as a separate acquisition-style cost. The buyer pays the notarial charges associated with the transfer, and if each party appoints a notary, both notaries share the same regulated fee rather than charging twice.

II. Capital gains tax (Plus-value immobilière)

For most non-primary residences, capital gains tax is the most important tax variable in a sale. The calculation is straightforward in principle, but the final liability depends heavily on ownership period, deductible costs, and ownership structure.

1. Taxable gain: basic formula

The taxable gain is broadly calculated as:

Taxable gain = Sale price – Adjusted acquisition cost

​

In practice:

  • The sale price is the price recorded in the notarial deed.

  • The adjusted acquisition cost may include the original purchase price, acquisition costs, and certain qualifying works.

​

A seller may generally add:

  • A flat 8% acquisition-cost uplift if using the forfait method

  • A 15% flat works uplift after five years of ownership, subject to the legal framework

​

This forfait approach can be particularly useful where historical invoices are incomplete.

2. Standard tax rates

For holdings that do not benefit from exemption, the standard capital-gains tax burden is composed of:

  • 19% income tax

  • 17.2% social charges

​

This gives a combined headline rate of 36.2% before duration-based abatements.

3. Duration-based abatements

France grants progressive tax relief for long-held real estate, with separate scales for income tax and social charges.

​

Key milestones:

  • Before 6 years: essentially no duration-based relief

  • At 22 years: income-tax component falls to zero

  • At 30 years: full exemption, including social charges

​

Holding period is calculated from the signature date of the acquisition deed to the signature date of the sale deed, by completed years.

III. Non-resident sellers

Non-resident owners are generally subject to the same 19% income-tax rate on taxable French real-estate gains, plus social charges under the applicable regime. For many non-EU sellers, the full 17.2% social-charge rate remains a key component of the overall tax burden.

Accredited tax representative

Where the sale price exceeds €150,000, a non-resident seller may be required to appoint an accredited tax representative (représentant fiscal accrédité) before completion. This representative works with the notary to calculate and secure the capital-gains tax due.

​

Indicative fee: approximately €500–€1,500, depending on the provider and transaction complexity.

​

Even where the eventual taxable gain is zero, or where duration-based relief eliminates the tax payable, the procedural requirement may still apply.

​

Certain EU/EEA residents may benefit from exceptions within specified sale-price bands, but this exception does not generally apply to Chinese residents.

IV. Ownership structure and capital-gains treatment

The ownership structure chosen at acquisition can have a decisive impact on the eventual tax result at exit. This is one of the main reasons why structure planning cannot be treated as an afterthought.xyle

1. Direct ownership / SCI à l’IR

Where the property is held directly or through an SCI à l’IR, the seller usually remains within the individual real-estate capital-gains regime. This means the property can benefit from the duration-based abatements described above, culminating in full exemption after 30 years.

2. SCI à l’IS

Where the property is held through an SCI à l’IS, the position is fundamentally different. The sale is treated under the corporate tax framework, and the company does not benefit from the individual 22-year / 30-year relief mechanism.

​

This structure may be suitable for income-oriented holding strategies, but exit planning is usually more complex and should be reviewed with a specialist tax adviser before sale.

V. Illustrative capital-gains example

Assumptions:

  • Purchased in 2015 for €1,500,000

  • Acquisition costs approximately €120,000

  • Sold in 2025 for €2,200,000

  • Holding period: 10 years

  • Non-resident owner

  • No major works claimed

This example is illustrative only, but it shows the logic:

  1. Start from the sale price.

  2. Deduct the acquisition price plus allowable acquisition-cost uplift.

  3. Apply any qualifying flat or actual works adjustment.

  4. Calculate the gross taxable gain.

  5. Apply the duration-based abatements according to the holding period.

  6. Apply the tax and social-charge rates to the remaining taxable base.​

​

In practice, the final amount should always be confirmed by the notary or tax adviser, particularly where works, debt history, or mixed personal/rental use complicate the file.

VI. Main ways to reduce capital gains tax legally

1. Hold longer

The most direct optimisation tool is simply time. At 22 years, the income-tax element reaches zero; at 30 years, the entire capital-gains tax burden is eliminated.

​

2. Maximise the adjusted acquisition cost

Keep the original acquisition deed, proof of acquisition costs, and all relevant invoices. Where documentation is incomplete, the legal forfait method may still provide a significant uplift.

​

3. Review qualifying works carefully

Certain structural improvement, extension, or major renovation costs may increase the adjusted acquisition cost. Routine maintenance, painting, and furniture replacement do not qualify in the same way.

​

4. Plan structure early

If a property is held through an SCI à l’IS, changing the holding structure before sale may appear attractive in theory, but the restructuring itself may trigger tax consequences. This should never be attempted without a case-by-case analysis.

VII. Frequently asked questions

Q1. Is capital gains tax due when selling a main residence in France?
No. A French tax resident selling a qualifying main residence generally benefits from a full capital-gains tax exemption without any minimum holding period. Non-residents usually do not meet the conditions for this exemption.

​

Q2. If I sell at a loss, can I offset that loss against other income?
No. A capital loss on the sale of private real estate does not generally offset other income and is not typically carried forward in the same way as financial losses.

​

Q3. When should I contact the notary before a sale?
Ideally as soon as the sale process becomes serious, and certainly once a sale agreement is being prepared. From the compromis de vente to completion, the process often takes around two to three months, and non-residents may need additional time for tax-representative formalities.

​

Q4. How is the holding period calculated?
It is calculated from the date of the authenticated acquisition deed to the date of the authenticated sale deed, by completed years.

​

Q5. For inherited or gifted property, how is the holding period calculated?
This depends on the legal mechanism and file structure and should be confirmed with a notary. In inheritance and family-transfer cases, the tax history of the property requires careful review before assuming the holding period or cost basis.

​

Q6. Where should I read about acquisition costs and ownership structures?
AAriane’s Buying property in Paris — acquisition costs and ownership structure guide explains purchase costs, financing-related fees, and the logic of direct ownership versus SCI structures, and should be read together with this selling guide.

The figures and principles above reflect the current French tax framework referred to in the article and are provided for general information only. Capital-gains tax depends on ownership period, residency status, structure, deductible costs, and supporting documents. Before selling, owners should consult a French notary and, where relevant, a qualified tax adviser for a case-specific calculation.

→ Previous article in this series: Buying in Paris — Acquisition Costs & Ownership Structure

→ For details on tax structures for rental income, see: Guide to the Paris Rental Costs

AAriane · 3 avenue Duquesne, 75007 Paris · Licensed Real Estate Consultant · Services in Chinese, English, and French · Direct listings, no referrals

Data reference: French tax law in force 2025–2026 (CGI articles 150 U and following; Cardif/BOFiP-aligned abattement schedule). A finance-bill proposal to shorten the income-tax exemption to 17 years was under debate as of this update and had not been enacted.

Capital gains calculations involve multiple variables — personal circumstances, ownership structure, and renovation documentation among them. This guide is framework-level information and does not constitute tax advice. Before selling, always engage a France-licensed notary and tax advisor for a case-by-case calculation.

→ Previous in this series: Buying in Paris — Acquisition Costs & Ownership Structure

→ For rental income tax structuring, see: The Paris Rental Market Guide

AAriane · 巴黎七区 · 3 avenue Duquesne持牌不动产顾问 · 中英法三语服务 · 直接委托，非转介

bottom of page