Selling property in France: Taxes for Americans

Selling French property comes with tax obligations, and you should be aware of them before you list your real estate assets. Capital gains tax is the main tax you'll pay, and the French system can be quite layered.

As a US citizen or resident, you'll also need to file with the IRS after your sale, though the tax treaty between France and the US means that you likely won't pay the capital gains tax twice.

Here's everything you need to know about selling your property in France and the taxes that come with it in both countries.

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Table of contents
What types of taxes do you have to pay when selling property in France? US tax requirements when selling property in France How to avoid double taxation when selling property in France Special considerations

What types of taxes do you have to pay when selling property in France?

Capital gains tax

France charges capital gains tax when you sell your property for a profit, or, in other words, for more than you paid for it. This applies to both French tax residents and non-residents.

The total tax burden combines 2 things:¹

• The capital gains tax itself at 19%, and
• Social charges at 17.2%

Your total is 36.2% on any profit.

This can seem steep, but France offers tax relief that increases the longer you own the property.

For capital gains tax:¹

• Years 1 to 5: No relief
• Years 6 to 21: 6% relief per year
• Year 22: 4% relief
• After 22 years: Complete exemption from the 19% capital gains tax

Social charges work on a longer timeline:¹

• Years 1 to 5: No relief
• Years 6 to 21: 1.65% relief per year
• Year 22: 1.6% relief
• Years 23 to 30: 9% relief per year
• After 30 years: Complete exemption from 17.2% social charges

So, you'll stop owing the 19% capital gains tax after 22 years of ownership, but you'll need to hold the property for 30 years to get rid of the 17.2% social charges portion as well.¹

If the property was your primary residence, you may qualify for a full exemption from capital gains tax even if you didn't own it for a long time.

However, for that, you need to move to France and live there for at least 6 months out of the year.¹

Other fees

When selling your property in France, you'll likely need to hire professionals to help you with the transaction. You may need to pay a real estate agent, legal/notary fees, or a tax professional to handle the paperwork for you.

All of these professionals typically charge a certain percentage of the sale price. Some of them may charge a flat fee.

US tax requirements when selling property in France

This may come as a surprise, but you'll have to report your French property sale on your US tax return. The IRS taxes American citizens and residents on their worldwide income, and this includes capital gains from selling real estate in another country.

However, whether you actually owe US capital gains tax depends on whether you can use the France-US tax treaty to avoid paying tax twice.² Most people will be able to claim the Foreign Tax Credit to either reduce or eliminate what they owe to the IRS.

FATCA and FBAR reporting

In addition to reporting your property sale to the IRS, you may also have additional reporting requirements in the US:

• FBAR (FinCEN Form 114): You must file this if the combined total of your foreign bank accounts is over 10,000 USD at any point during the year, and a property sale will easily push you over this threshold³
• FATCA (Form 8938): You need to file this form if your foreign financial assets exceed 200,000 USD at year-end or 300,000 USD at any point during the year (or double if you're married filing jointly)⁴

These forms don't mean that you owe any more tax to the IRS. They're just reporting requirements. However, not filing them on time can lead to penalties, so don't miss them.

How to avoid double taxation when selling property in France

The US and France have a tax treaty in place, and it prevents you from being taxed twice on the same income. Most of the time, you should be able to use the Foreign Tax Credit to avoid paying the capital gains tax in the US if you have already paid this tax in France.

Once you pay the French capital gains tax, you can claim that payment as a credit on your US tax return using Form 1116. This will reduce the amount you owe in the US by the amount you paid to France.

As a result, you may not owe any US capital gains tax at all, or you may owe very little.

Special considerations

Non-resident vs resident tax implications

France treats residents and non-residents the same way when it comes to the capital gains tax because your property is physically located in France. You'll pay the same 36.2% rate (19% capital gains tax plus 17.2% social charges) whether you live in France or abroad.¹

However, as a non-resident, you won't be able to qualify for the primary residence exemption because, naturally, your property isn't where you live full-time.

Properties held through companies

Some Americans own their French property through a company.

If this is the case for you, then the sale gets treated as a corporate transaction, which adds a new level of complexity to it both in France and in the US. It's usually a good idea to hire a tax professional to help you navigate all the requirements.

You also won't be able to qualify for the primary residence exemption.

💡 Learn more about property taxes in France.

Inherited property sales

If you inherited a property in France, you'll first need to pay the inheritance tax.

In France, this tax ranges from 5% to 60%, depending on factors like how closely related you are to the deceased, the value of what you're inheriting, and whether you've already used your personal allowance in the past 15 years.⁵

Once you pay the tax and take ownership of the property, you're free to sell it. You'll pay capital gains on it, but the clock for how much profit you make starts from when you inherited it, not when the original owner bought it.

So, if you inherit a property and sell it 3 years later, you'll pay the 36.2% capital gains on any profit since you became the owner. The taper relief follows the same rules.

What are the tax filing deadlines in France and the US?

France tax deadlines

France divides the country into 101 regions, and each has its own tax filing deadline. These deadlines are typically announced in late spring each year.¹However, it's a good idea to ask your lawyer or tax professional when your capital gains tax payment is due. They'll know a more accurate date for your situation.

US tax deadlines

You'll have to report your property sale on your US tax return, which is due on April 15. Or, if you live outside of the US, you automatically get until June 15 to file.⁶

Bottom line

Selling property in France means paying taxes, potentially 36.2% on your profit if you haven't owned your real estate long enough to benefit from taper relief.¹

You'll also need to report the sale to the IRS. However, the tax treaty between France and the US will likely help you avoid paying the capital gains tax twice in both countries.

That said, beyond taxes, there's an expense that many property owners don't consider: the cost of transferring money between the US and France, especially when dealing with large amounts.

Banks often charge high transfer fees on international wire transfers and build hidden markups into their exchange rates. When you convert from EUR to USD (or vice versa), the bank may give you a rate that's much worse than the mid-market rate you see on Google.

For example, a typical 3% exchange rate markup could cost you 9,000 EUR or more on a 300,000 EUR property sale.

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Sources

1. Property Tax International - Property Tax in France for Non-Residents
2. IRS - Convention Between the Government of the United States of America and the Government of the French Republic for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital
3. IRS - Report of Foreign Bank and Financial Accounts (FBAR)
4. Tax Samaritan - Owning a Foreign Property
5. Lumon - Inheritance Tax in France for Non-Residents
6. IRS - Frequently asked questions (FAQs) about international individual tax matters

Sources checked 12/04/2025