If you’ve owned a property in France for several years and the time has come to sell, you’ve probably come across some alarming figures. Capital gains tax on French property is widely misquoted online. Many sources suggest UK sellers face a combined rate of 36.2%. That figure was accurate before Brexit — it hasn’t been true since early 2022.
The reality for most UK sellers is a combined capital gains tax rate of 26.5%, because post-Brexit arrangements allow UK nationals affiliated with the British social security system to benefit from a reduced social charges rate of 7.5%, rather than the higher rate applied to most non-EU sellers. That distinction can be worth thousands of euros on a typical sale — and notaires sometimes apply the wrong rate automatically, so you need to know your position before you sit down to sign anything.
The rules changed again for 2026. France’s latest Finance Act accelerated the taper relief schedule, cutting the point at which full income tax exemption kicks in from 22 years of ownership to 17. If you bought your French property in the late 2000s, this may already be relevant to your timing.
Key takeaway: UK sellers of French property pay capital gains tax at a combined rate of 26.5% — 19% income tax plus a 7.5% solidarity levy — rather than the 36.2% or 37.6% that applies to most non-EEA sellers. For it to apply, you have to be affiliated with the UK social security system and not covered by a French social security scheme. Taper relief reduces the taxable gain progressively from year six of ownership, and full income tax exemption now applies after 17 years under rules introduced in 2026.
Contents
- How French capital gains tax works for UK sellers
- The post-Brexit social charges question
- Taper relief: how long you’ve owned the property matters
- Exemptions that could reduce your bill to zero
- The surtax on large gains
- Costs you can deduct from the gain
- What you’ll also owe in the UK
- The fiscal representative requirement
- Practical steps before you sell
- What should I do next?
- Summary
- Frequently asked questions
- Sources
How French capital gains tax works for UK sellers
France has the primary right to tax gains made on French property, regardless of where the seller lives. The Franco-British double taxation treaty confirms this, so you pay in France first and then deal with any UK obligations separately — more on that below.
The tax is calculated on the gain. That is the difference between what you sell for and what you paid, adjusted for allowable costs. There are two components — income tax and social charges — which operate on separate rates and separate taper schedules:
| Component | Rate for most non-EEA sellers | Rate for qualifying UK sellers |
|---|---|---|
| Income tax (impôt sur le revenu) | 19% | 19% |
| Social charges (prélèvements sociaux) | 18.6% | 7.5% |
| Total | 37.6% | 26.5% |
The standard social charges rate increased from 17.2% to 18.6% under the 2026 Social Security Finance Act.
Capital gains tax is calculated and withheld by your notaire at the point of sale, rather than something you have to track and declare later. The notaire deducts it from your proceeds and pays the Direction générale des Finances publiques (DGFiP) directly on your behalf.
Understanding the French property buying process from the start helps. The date of your original acte authentique — which is the final deed signed before a notaire — is the date that taper relief is counted from. Getting that date right matters when you’re calculating your tax position.
The post-Brexit social charges question
Before Brexit, EU case law — specifically the 2015 de Ruyter ruling — prevented France from levying CSG and CRDS social charges on people covered by another EU member state’s social security system. The UK benefited as an EU member, meaning UK sellers only ever paid the 7.5% solidarity levy rather than the full rate.
After Brexit, there was considerable confusion. Throughout 2021, many notaires applied the full rate to UK sellers, treating them as third-country nationals — leading to widespread overpayments.
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The position was formally clarified on 14 January 2022, when the DGFiP confirmed that UK nationals can continue to benefit from the 7.5% rate, based on the social security coordination provisions of the UK–EU Trade and Cooperation Agreement. Refunds were made available for 2021 overpayments. In our experience, many sellers who overpaid that year simply didn’t know they could reclaim — it’s worth checking if this applies to you.
The three conditions that apply are:
- You must be affiliated to the UK social security system (not covered by a French compulsory social security scheme)
- You must be a national or legal resident of the UK, France or an EU member state
- You must not be receiving a pension or benefits from the French social security system
This covers the vast majority of UK nationals who own a French holiday home or second property while remaining resident in the UK. If you live in France and are covered by the French healthcare system, different rules apply and it’s worth taking specialist advice.
The practical problem is that, despite the DGFiP’s clarification, notaires still sometimes apply the wrong rate. Tell your notaire explicitly that you qualify for the 7.5% rate and be prepared to provide documentation — typically evidence of UK social security affiliation such as a National Insurance confirmation letter or an HMRC form. There is no standardised list of accepted documents, so discuss this with your notaire early. If you’re unsure where to start, finding a lawyer in France who specialises in UK buyers can take a lot of the administrative burden off your shoulders.
Taper relief: how long you’ve owned the property matters
France’s taper relief system reduces your taxable gain progressively the longer you have owned the property. The income tax and social charges components operate on separate schedules — and the income tax schedule was significantly improved in the Loi de Finances 2026.
Income tax taper
Full exemption from the 19% income tax component is now reached after 17 years of ownership, down from 22 years previously. The relief builds as follows:
| Years of ownership | Annual income tax relief | Cumulative relief |
|---|---|---|
| Years 1–5 | 0% | 0% |
| Years 6–16 | 8% per year | Up to 88% |
| Year 17 | 12% | 100% — fully exempt |
Social charges taper
The social charges relief takes longer — full exemption still requires 30 years of ownership:
| Years of ownership | Annual relief |
|---|---|
| Years 1–5 | 0% |
| Years 6–21 | 1.65% per year |
| Year 22 | 1.60% |
| Years 23–30 | 9% per year |
After 17 years, a UK seller owes no income tax on the gain but still pays the 7.5% solidarity levy on a reduced portion — roughly 80% of the original gain. After 22 years, the tapered social charges portion falls to around 72%. Only at the 30-year mark does the property become entirely tax-free.
For buyers in their 50s and 60s who purchased in the early-to-mid 2000s, this distinction matters. If you’re approaching 17 years of ownership, it may be worth holding on a little longer to eliminate the income tax component entirely before selling. It’s a significant saving — and one that the costs of buying property in France guide can help you weigh against your overall financial position.
“After 17 years of ownership, a UK seller owes no income tax on the gain — only the 7.5% solidarity levy on a tapered portion.”
Exemptions that could reduce your bill to zero
Several exemptions can eliminate French CGT entirely, depending on your circumstances.
Primary residence exemption. The sale of a principal French residence is fully exempt from both income tax and social charges, regardless of gain size or ownership duration. For most UK buyers with a second home in France, this won’t apply — your principal residence is in the UK.
Former primary residence exemption. If you previously lived in your French property as a main home before moving abroad, you may still qualify for full exemption, provided the sale completes by 31 December of the year following your departure, the property hasn’t been rented since you left, and your current country of residence has an administrative assistance agreement with France. The UK qualifies.
The €150,000 (around £128,000) non-resident exemption. This shelters up to €150,000 per seller — €300,000 for a couple who own jointly — from the taxable gain. To qualify, you must have been a French tax resident for at least two consecutive years at any point before the sale, and either be selling within ten years of leaving France, or have kept the property at your free disposal since 1 January of the year preceding the sale. A proposal to abolish this exemption was tabled during the 2026 Finance Bill debate but did not survive into the final enacted law.
Low-value exemption. Sales where the total price is below €15,000 per seller’s share are fully exempt.
Reinvestment exemption. Gains from a first sale of a secondary residence can be exempt if the seller has not owned a primary residence for four years preceding the sale and reinvests within 24 months. This rarely applies to UK buyers who typically own a UK primary residence.
The surtax on large gains
For gains that remain taxable after taper relief, an additional surtax applies once the net taxable gain exceeds €50,000. It applies on a sliding scale to the full taxable gain — not just the portion above the threshold — though a smoothing mechanism prevents cliff-edge jumps.
| Net taxable gain | Surtax rate |
|---|---|
| Up to €50,000 | 0% |
| €50,001 – €100,000 | 2% |
| €100,001 – €150,000 | 3% |
| €150,001 – €200,000 | 4% |
| €200,001 – €250,000 | 5% |
| Above €260,000 | 6% |
The surtax applies to the income tax element only, not to social charges.
Costs you can deduct from the gain
The taxable gain is not the raw difference between sale price and purchase price. Several costs reduce it — and taking full advantage of these deductions is one of the most straightforward ways to lower your bill.
At purchase: notaire fees and registration duties (or a flat-rate alternative of 7.5% of the purchase price); estate agent fees paid at purchase. The notaire fees article explains what these cover in more detail.
During ownership: documented improvement works carried out by registered companies. Maintenance and repairs don’t count — only works that improve, extend or modernise the property. If you have the invoices, use actual costs. If you’ve owned the property for more than five years and the works are hard to document fully, you can instead use a flat-rate allowance of 15% of the purchase price without producing receipts.
At sale: estate agent commission, costs of mandatory diagnostic surveys (diagnostics techniques) and other directly sale-related expenses.
Currency conversion costs are not deductible under French tax rules, but they represent a very real impact on your net proceeds in sterling. Many buyers we help underestimate the exchange rate effect on a six-figure euro sale — the difference between a rate locked in months ahead and whatever rate happens to be trading on completion day can run to several thousand pounds. A forward contract through Smart Currency Exchange lets you fix today’s rate well in advance of completion, so you know exactly what you’ll receive.
What you’ll also owe in the UK
Once you’ve paid French CGT, you’re not necessarily finished. UK residents must also declare the gain to HMRC on a Self Assessment return, using form SA108 (capital gains) alongside form SA106 for foreign income.
The good news is that HMRC operates a foreign tax credit system: the French tax already paid — both the 19% income tax and the 7.5% solidarity levy — can be offset against your UK CGT liability. In most cases, this eliminates any further UK tax to pay. The calculation does require care, particularly if you have unused UK annual CGT exempt amounts or other gains in the same tax year, so a UK tax adviser is worth consulting before you commit to a sale date.
UK CGT rates on residential property currently stand at 18% for basic-rate taxpayers and 24% for higher-rate taxpayers. Both rates apply to gains above the annual exempt amount (currently £3,000).
The fiscal representative requirement
EU and EEA nationals selling French property face no requirement to appoint a local representative. UK nationals, however, must appoint an accredited fiscal representative (représentant fiscal accrédité) for any sale where the total price exceeds €150,000. This is a post-Brexit administrative addition that catches many UK sellers off guard.
The fiscal representative countersigns your capital gains declaration, takes joint liability for the tax due and handles the calculation alongside your notaire. Their fee is typically 0.5% to 1% of the sale price, with a minimum of around €500 — and it is a deductible cost for CGT purposes. Your notaire can usually recommend one, and some French tax advisory firms combine both roles.
This is one area where finding a property specialist in France early in the process pays dividends. Getting the fiscal representative appointment sorted before you sign the compromis de vente means one less thing to manage in the weeks before completion.
Practical steps before you sell
Check your taper position. Count from the date of the acte authentique when you purchased. If you’re approaching 17 years, it may be worth waiting to eliminate the income tax component entirely before selling.
Gather your purchase documents. You’ll need the original purchase deed, notaire fees receipts, estate agent invoices and any invoices for improvement works. The better your records, the lower your taxable gain.
Tell your notaire your UK affiliation status early. Confirm in writing that the 7.5% social charges rate applies to you and provide documentary evidence of your UK social security affiliation. Don’t leave this until the day of completion.
Appoint a fiscal representative before signing the compromis de vente. If your sale price exceeds €150,000 (£128,000), you need one by law. Your notaire can usually recommend someone, or a specialist France property adviser can help.
Get a currency plan in place. Your sale proceeds will arrive in euros. If you’re repatriating to the UK, a forward contract can lock in today’s rate ahead of completion. It’s worth reading our guide on money-saving tips when buying or selling property in France for a broader view of how to maximise what you keep.
What should I do next?
If you’re planning to sell your French property — or simply want to understand your position before making a decision — here are the most useful next steps:
Get specialist tax advice. The post-Brexit social charges position is now settled, but applying it correctly with your notaire still requires specialist knowledge. A French property tax adviser or solicitor with UK-seller experience is well worth the cost. Find a recommended expert through our directory.
Plan your currency transfer early. Contact Smart Currency Exchange to discuss how to protect your sale proceeds from exchange rate movements — particularly if there’s a gap of several months between signing the compromis de vente and completion.
Browse properties for sale in France if you’re considering reinvesting or buying in a different region. Our France property portal lists current properties across all price ranges and regions.
Summary
UK sellers of French property pay a combined capital gains tax rate of 26.5% — 19% income tax plus a 7.5% solidarity levy — not the 36.2% or 37.6% figure widely quoted online. The reduced rate was formally confirmed by the French tax authority in January 2022 and rests on the social security coordination provisions of the UK–EU Trade and Cooperation Agreement, provided sellers are affiliated with the UK social security system. From 2026, an accelerated taper relief schedule means full income tax exemption is reached after 17 years of ownership, down from 22. Social charges still require 30 years to taper to zero. Several exemptions can eliminate the liability entirely, including the primary residence exemption and the €150,000 non-resident exemption for qualifying sellers. UK sellers with sales above €150,000 must appoint a fiscal representative — a post-Brexit requirement that EU and EEA sellers do not face. Any gain must also be declared to HMRC, though a foreign tax credit will typically offset most or all of the French tax already paid.
Frequently asked questions
Yes, in most cases. The French tax authority confirmed in January 2022 that UK nationals affiliated with the British social security system qualify for the 7.5% solidarity levy rate, not the higher rate applied to most non-EEA sellers. The standard rate has since risen to 18.6%, but qualifying UK sellers remain unaffected. You need to proactively confirm your status with your notaire and provide evidence of UK social security affiliation — it is not applied automatically.
Under rules introduced in the Loi de Finances 2026, the 19% income tax component reaches full exemption after 17 years of ownership, reduced from 22 years previously. The social charges taper operates on a separate schedule and reaches full exemption only after 30 years. For a UK seller paying just 7.5% in social charges, the practical position after 17 years is a modest liability on a tapered portion of the gain — considerably lower than the headline figures suggest.
Yes. UK residents must declare any gain from a French property sale on a Self Assessment return, using forms SA108 and SA106. The French tax already paid — both the 19% income tax and the 7.5% solidarity levy — can be credited against your UK CGT liability under the double taxation treaty, which typically eliminates any additional UK tax. Obtain written confirmation of the French tax paid from your notaire to support the foreign tax credit claim.
A représentant fiscal accrédité is a French-based professional who countersigns your capital gains declaration and takes joint liability for the tax due. Since Brexit, UK sellers are required to appoint one for any property sale above €150,000. EU and EEA nationals are exempt. The cost is typically 0.5% to 1% of the sale price and is deductible against the taxable gain.
Yes, provided the works were carried out by registered companies and you hold the original invoices. Maintenance and repairs are not deductible — only works that improve, extend or modernise the property qualify. If you’ve owned the property for more than five years and documentation is limited, you can instead apply a flat-rate 15% deduction based on the original purchase price without producing individual receipts.
If the standard 18.6% rate is applied rather than the 7.5% rate, you will overpay and will need to reclaim the difference from the DGFiP after completion by filing a réclamation contentieuse with the French tax authority. Several UK-specialist advisers offer help with these claims. The better approach is to raise the issue before completion — write to your notaire early, confirm your status in writing and provide documentary evidence of UK social security affiliation.
Sources
- Direction générale des Finances publiques (DGFiP) — Capital gains on the sale of property: impots.gouv.fr
- Notaires de France — Capital gains on real estate in France: notaires.fr
- PwC Worldwide Tax Summaries — France, individual, other taxes (2025/26): taxsummaries.pwc.com
- Cabinet Roche and Cie — Real estate in France: key changes applicable in 2026: cabinet-roche.com
- HMRC — Report and pay Capital Gains Tax: gov.uk
- HMRC — Foreign tax credit relief: gov.uk
