When is the tax on capital gains paid ?
Reselling a property typically involves a capital gain, a non-taxable profit in certain situations, such as the sale of your principal residence, property at a price less than or equal to € 15,000 or a second home more than Of thirty years. Finally, on the sale of a dwelling other than the Principal Residence subject to the following conditions:
Possible during a single assignment during its lifetime
You have not been the owner of your Main Residence, either directly or by intermediary, during the 4 years prior to the transfer
You reimburse the sale price, within 24 months of the transfer, for the acquisition or construction of an affected dwelling, upon its completion or its acquisition if it is later, to your Main Residence. If the reimbursement is partial, the exemption of surplus value is proportionate to the fraction of the transfer price that is actually replenished.
Real estate sold that does not correspond to these situations benefit in some cases from deductions on their surplus value. Certain fees may be deducted from the sale price (eg agency commission or diagnostic fees).
The amount of the net capital gain is subject to a tax of 19% and social security levies of 15.5%. Pay attention to the surtax applicable to the tax: it goes from 2 to 6% in excess of 50 000 € of profit of sale.
However, the number of years of possession of the property makes it possible to add an additional deduction to the surplus value. It will be fully taxed if you own the property for less than 5 years. On the other hand, the greater the number of years of possession, the more you can reduce the taxable amount of your capital gain: 6% for each year from 6 to 21 years, then 4% for the 22nd year for tax purposes. For social contributions, 1.65% is deducted for each year from 6 to 21 years, 1.60% for the 22nd year and 9% for the following years. For example, for a property owned for 16 years, you can subtract from your net capital gain a reduction of 66% for tax and 18.15% for social security contributions.