Capital gains on real estate are taxed as soon as a sold property generates a profit compared to its acquisition price. The tax framework surrounding it has recently changed, particularly for non-professional furnished rental owners. Understanding the current rules before signing a preliminary agreement avoids unpleasant surprises regarding the net amount received after the sale.
Reintegration of LMNP depreciations: what changes since February 2025
Competitors extensively detail the allowances for holding duration but often overlook a major upheaval for property owners. Since February 15, 2025, depreciations deducted in LMNP under the actual method are reintegrated into the calculation of the capital gain. In practical terms, the acquisition price considered by the administration is reduced by the amount of the tax-deducted depreciations, which mechanically inflates the taxable base.
This measure does not only concern properties acquired after this date. It also applies to properties rented out furnished before 2025, as long as the sale occurs from February 15, 2025. An owner who has depreciated their property for several years may thus find themselves with a taxable capital gain significantly higher than they anticipated.
For an investor considering selling a furnished rental property, it becomes necessary to reconstruct the complete history of the depreciations applied. A dedicated page on capital gains on Proximmo Net details the parameters to check before putting a property up for sale in this context.
Exemption for primary residence: recent clarifications from the Council of State
The sale of a primary residence remains completely exempt from capital gains tax. This rule seems simple, but its application regularly poses difficulties when the seller has left the property before the sale.
Effective occupation and sale deadline
The Council of State clarified on March 14, 2025, that the judge must examine the actual conditions of occupation of the property. They cannot rely solely on a presumed intention of the sellers to deny the exemption. This decision secures certain cases where the property was vacated shortly before the sale, provided that the sale timeline remains reasonable and that prior occupation is proven.
In practice, keeping proof of occupation (utility bills, received mail, home insurance certificates) is a reflex to adopt from the moment of moving out. The tax administration can go back several years during an audit.
Separated couples: an individual assessment
The primary residence exemption is assessed for each seller. In a separating couple, the spouse still living in the property retains the exemption on their share. The situation of the other spouse must be examined separately, which may lead to partial taxation if they have already left the premises and established residence elsewhere.
This point is often overlooked during divorces, where the sale of the joint property sometimes occurs several months after one spouse has moved out.
Increase in acquisition price: concrete levers to reduce the taxable base
The acquisition price is not limited to the amount stated in the purchase deed. Several elements can increase it and thus reduce the taxable capital gain.
- Acquisition costs (notary fees, registration fees) can be retained for their actual amount or, in the absence of supporting documents, assessed flat-rate at 7.5% of the purchase price
- Work expenses (construction, reconstruction, expansion, improvement) are added to the acquisition price if justified by invoices. Beyond five years of ownership, a flat-rate of 15% of the purchase price can be applied without justification
- Road, network, and distribution costs borne by the seller when acquiring land can also be included
The choice between actual amount and flat rate deserves to be calculated in both scenarios. An owner who has done little work may sometimes benefit from opting for the 15% flat rate, while another who has undertaken significant renovations will gain from providing their invoices.
Additional tax on high capital gains and social contributions: the double tax layer
The net capital gain after allowances for holding duration is subject to two distinct levies. The income tax at a flat rate of 19% applies first. Social contributions of 17.2% are added, bringing the total burden to 36.2% before allowances.
The total exemption from income tax occurs after twenty-two years of ownership. For social contributions, one must wait thirty years. Between these two thresholds, a seller may be exempt from income tax but still liable for social contributions.
A progressive surtax targets the highest taxable net capital gains. It adds to the income tax and social contributions. Its activation depends on the amount of the net capital gain, making the overall calculation less linear than it seems.
Anticipating taxation before putting up for sale
The notary calculates and withholds the capital gains tax directly at the signing of the authentic deed. The seller thus receives a net price, reduced by taxation. Requesting a simulation from the notary or a tax advisor even before setting the sale price allows for adjusting expectations.
Several parameters remain unclear in certain cases, especially when old works are undocumented or when the effective duration of occupation of a primary residence is debated. Reconstructing a complete file of supporting documents from the decision to sell reduces the risk of reassessment and avoids discovering the amount of tax at the last minute.
The tax framework for capital gains on real estate evolves regularly, as shown by the LMNP reform of 2025. Checking the rules in force at the date of the sale, and not those applicable at the time of purchase, remains the only truly reliable precaution.
