This tax is based on the rental value of the property and is paid annually by the homeowner. The tax rate varies depending on the location and value of the property.
Capital Gains Tax (Impôt sur les plus-values immobilières):
This tax is applied to the profit made from the sale of a property. For primary residences, the tax rate is 19% for a holding period of less than 6 years and 30% for a holding period of more than 6 years. For second homes, the tax rate is 30%.
(Impôt de succession):
This tax is applied to the value of a property inherited from a deceased person. The tax rate varies depending on the relationship between the deceased and the heir, with lower rates for direct descendants.
(Impôt sur les donations):
This tax is applied to the value of a property gifted to another person. The tax rate varies depending on the relationship between the donor and the recipient, with lower rates for direct descendants.
Tax on Property Income
(Impôt sur le revenu):
This tax is applied to the income earned from renting out a property. The tax rate is based on the individual’s income tax bracket.
Tax Advantages in Buying a House in France
First-time Homebuyers Tax Credit (Crédit d’impôt pour les primo-accédants):
This tax credit is available for first-time homebuyers and is equal to 18% of the purchase price, up to a maximum of ‚€9,000.
Social Accession to Ownership (Accession sociale à la propriété):
This program is designed to help low-income households become homeowners by providing financial assistance for the purchase of a primary residence.
Reduced Value-Added Tax (TVA réduite):
For new or recently constructed properties, the value-added tax (VAT) rate is reduced from 20% to 5.5%.