In case of resale of your principal residence no taxation is applicable … except exception.
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The capital gain carried out on the occasion of the sale of the main residence escapes any taxation: neither income tax nor social levies. In practice, it is sufficient that the deed of sale mentions that the housing sold constitutes the principal residence of the seller so that the exemption is acquired.
The notary responsible for writing the act does not have to verify the claim of the seller, and even fewer justifications to claim. “But, in a recent case, the Court of Cassation has ruled that it incurs its responsibility if it agrees to indicate in the act that the housing sold is the principal residence of the seller while he knows that this is more the case for more than one year “, warns Nicolo Acquari Patrimonial Engineer at Mirabaud.
To take advantage of the exemption, it is necessary that the dwelling is the principal residence of the seller at the time of sale. Which does not exclude the possibility of moving before having concluded the sale. But for the exemption applies, the move must intervene after the sale and that the dwelling remains empty until the day of the signature of the act. Until that date, the seller must forbid it to give it for rent, even on short durations, or to lend him to a family member or to a loved one, otherwise the exemption will be refused.
The tax authorities shall admit a single exception: the purchaser with whom the sales agreement was signed may settle in the housing under a temporary occupation agreement. In addition, the sale will take place within a reasonable period of time. What is generally considered as such when it comes in the year following the move.
A device for expatriates
But a longer period is not necessarily writing (judges have accepted a period of twenty-seven months in a recent case) if the seller proves that he has done everything to sell his home in the best Deadlines – Multiple sales ads, signatures of several mandates, decrease in the requested price, etc. – or that particular circumstances prevented him from selling her more quickly – depressed market, atypical, signature of several compromises that did not succeed …
Since 2019, a specific device also allows those who are explained to take advantage of this exemption when they resell their principal residence after the transfer of their tax domicile abroad, provided that the sale intervenes at most late on December 31 of the year following their departure. “This exemption only plays only for those who move to another country of the European Union or in a country that has signed an agreement with France in the fight against tax fraud. Which is particularly the case of the Uni. Despite Brexit, it is therefore possible to take advantage of this exemption for an overseas expatriation, “says Philippe Stéphan notary in Lille, a member of the monasier network.
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