If the property is your primary residence, you pay no CGT at sale regardless of your nationality.
If the property is a secondary residence, investment, rental - then you pay CGT on the PROFIT regardless of your nationality.
Lets say you bought for 1,000,000 € (plus notary fees - say 70,000 €) and sold for 1,300,000 € then you pay CGT on 230,000 € PROFIT.
If you are an EU National, this would be 16% ( 36,800 € in this instance)
If you are French - 26% (59,800 €)
Anyone else (or a business or company) then you pay 33% on the profit ( 75,900 €)
HOWEVER - after 5 years ownership, the CGT starts to decrease, and is 0% after 15 years - i.e. you've had a secondary residence for 15 years or more, and now want to sell - you pay no CGT.
You might choose to decrease your notary fees (roughly 7%) when you bought by having furnishings, kitchens etc listed and paid separately (thus not included in the notaires fees) - however, when you sell your profit margin will be higher (unless you repeat the process of this separate 'inventory') and thus paying more CGT.
For the sale, the notaire will automatically appoint a CGT specialist, who roughly charge 0.65% of the sale price. It is up to you to provide for them any legal work or justification of why they should diminish your profit margin from any advancements (and thus costs) associated with your property.
Even if you sell for a loss, the specialist will charge you.
For more info, please feel free to contact us at info@lipsproperty.com our visit our web for useful information
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