French real estate taxation may seem complex at first, but it is actually well structured and predictable. In this guide, CapDom explains everything foreign property owners need to know about real estate taxation in France.
Yes. All property owners in France, residents and non-residents alike, are subject to property-related taxes.
Below is a clear breakdown of the main taxes you should be aware of when buying property in France as a foreigner.
The property tax (taxe foncière) is a local tax paid annually by all property owners, including foreign nationals.
It is calculated based on:
• the cadastral value of the property,
• the location (tax rates vary significantly between municipalities),
• annual decisions made by local authorities.
💡 Good to know: Some exemptions or reductions may apply, particularly when energy-efficiency renovation works are carried out.
The residence tax has been abolished for primary residences, but it still applies to second homes, including those owned by foreign buyers.
This tax depends on:
• the cadastral rental value of the property,
• local municipal tax rates.
Foreign owners of second homes on the French Riviera should therefore factor this tax into their annual property costs.
A crucial rule to remember:
➡️ Any rental income generated from a property located in France is taxable in France, even if the owner lives abroad.
This applies to:
• long-term rentals,
• furnished rentals,
• seasonal or short-term rentals.
Rental income is taxed after deducting allowable expenses, such as:
• maintenance and repair costs,
• mortgage interest,
• property tax,
• condominium charges.
The net income is then included in your French taxable income.
The IFI (Impôt sur la Fortune Immobilière) applies to real estate assets with a net value exceeding €1.3 million.
Key points:
• The tax base is calculated using the market value of the property.
• Foreign owners are taxed only on their French real estate assets.
➡️ Primary residences benefit from a 30% allowance, reducing the taxable value.
When selling a property in France, foreign owners may be subject to capital gains tax.
Exemptions Based on Ownership Duration
• After 22 years → full exemption from income tax on the capital gain
• After 30 years → full exemption from social contributions
➡️ After 30 years of ownership, no capital gains tax is payable.
Understanding this timeline is essential when planning a long-term real estate investment on the French Riviera.
Navigating French real estate taxation as a foreign buyer requires expert guidance to avoid costly mistakes and optimize your investment. At CapDom, our priority is to offer you transparent support so that you have all the information you need to make the decisions that best suit your situation.
We assist French and international clients with the purchase of primary or secondary residences, rental investments on the French Riviera, understanding and optimizing real estate taxation, and the sale of properties.
Our mission: to offer you clear, rigorous, and professional support to secure your investment in one of the most beautiful regions in the world.
Are you looking to buy or sell on the French Riviera ? 📩 Contact CapDom for personalized expertise.
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