Since January 1st 2019, the sale of real estate located in France by persons covered by the social security system of a State of the European Union, the European Economic Area or Switzerland and who is not covered by a compulsory French social security regime is now exempt from « CSG » and « CRDS » on capital gains.
In France, taxation on real estate is made of two main components:
- Income tax at a rate of 19 % ;
- Social security contributions at a rate of 17,2 % which is composed of the following :
- The « contribution sociale généralisée » (CSG) at a rate of 9,2 % ;
- The « contribution au remboursement de la dette sociale » (CRDS) at a rate of 0,5 % ;
- The « prélèvement de solidarité » (PS) at a rate of 7,5 %.
Since January 1st 2019, the sale of real estate located in France by persons covered by the social security system of a State of the European Union, the European Economic Area* or Switzerland and who is not covered by a compulsory French social security regime is now exempt from « CSG » and « CRDS » on real estate capital gains.
Thus, they are only liable to the « prélèvement de solidarité » at a rate of 7,5% which results in a taxation at a rate of 26,5 % instead of 36,2 %.
*European Union countries : Germany, Italy, Austria, Latvia, Belgium, Lithuania, Bulgaria, Luxembourg, Cyprus, Malta, Croatia, Netherlands, Denmark, Poland, Spain, Portugal, Estonia, Romania, Finland, United Kingdom, Slovakia, Greece, Slovenia, Hungary, Sweden, Ireland, Czech Republic.
European Economic Area : Iceland, Norway and Liechtenstein
