The sale of real estate allows the seller to realize the real estate capital gain. This is always valid whether you are selling a house, an apartment or land. Thus, it is the profit that you make after a real estate sale. It is subject to a tax, so a question arises, when should this capital gains tax be paid?

Taxation of real estate capital gains

Except in the case of exemption, the payment of a capital gains tax is compulsory. All sellers domiciled in France are subject to capital gains tax. Therefore, even if his property is located abroad, but the seller is a French resident, then he remains taxable. Then, sellers residing in metropolitan departments are also concerned.

Capital gains made by natural persons are also taxable. These include a spouse, your own person or a dependent. The capital gain realized by certain legal persons is also taxable. This is the case of civil real estate companies or SCI. They are subject to income tax.

The conditions for there to be added value

A few conditions must be met for there to be added value. A priori, the sale or exchange must involve a transfer for consideration. A free transfer such as a gift or an inheritance thus makes benefit from an exemption.

Then, for there to be added value, the sale must relate to a property or real estate rights. Obviously, the exemption automatically cancels the taxable capital gain. Then, the added value cannot be zero or negative. In this case, it will be a capital loss.

Payment of capital gains tax

First, be aware that the declaration and the payment are made at the same time and in the same place. You must make them at the time of the sale and payment is made at the notary. The latter makes a specific declaration and you, as the seller, receive the price net of tax.

The cost that is your responsibility is that of the remuneration of the notary for the declaration and the payment that he made on your behalf. The amount of remuneration is indicated in a table providing for the cost of formalities for actions carried out by the notary. This amount is 69.23 euros including tax. This cost is entirely the responsibility of the seller.

On the other hand, the seller is required to report the net amount of the capital gain on his tax return. Be aware that the omission of such a declaration is punishable by a fine. The latter is the equivalent of 5% of the sums that you have not declared. So, in general, the amount of this fine is between 150 to 1,500 euros.