French property taxes

Preparing your residential property investment in France

When choosing to invest in real estate, it is important to clearly define your needs in order to adopt the most appropriate investment plan, and to know the tax arrangements.

Discover our report to understand and prepare for the key points of real estate investment in France.

Some of the elements you will find in this guide:

Acquisition / Ownership / Transmission information
Charges and taxes due on acquisition
Modes of detention
Taxes on rental income
Property wealth tax
Transfer of property
Taxes on capital gains

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Provence, Valensole Plateau, France, Europe. Lonely farmhouse and cypress tree in a Lavender field in bloom, sunrise with sunburst.

More information on transmission

Is property transferred free of charge subject to property wealth tax?

Duties are payable on the market value of the property transferred
Duties are payable according to the family relationship:
- Direct line gift/ inheritance: progressive tax scale with a marginal rate of 45%
- No inheritance tax is due for inheritance between spouses
Allowance of €100,000 per child and per parent / €31,865 per grandchild and per grandparent

Transfer of bare ownership while retaining usufruct

What are the benefits?

Lower duties because they are payable on the value of the bare ownership only (which depends on the age of the usufructuary)
The usufructuary retains the right to dispose of the property and receive the income
On the death of the usufructuary, the bare owner receives full ownership without paying any additional tax

What is usufruct?

EXAMPLE

At the age of 63, a parent donates bare ownership of a property worth €2 million. The value of the bare ownership is estimated at 60% of the value of the full ownership; duties will therefore only be payable on €1.2 million.

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French Property Taxes