Selling Property in France as a Non-Resident: Capital Gains Tax, the Fiscal Representative and the Legal Framework

Owning a French property from abroad is common; selling it is where many owners discover that French law treats the transaction differently from what they expect. The sale is perfected by mere agreement, the buyer holds a statutory withdrawal right, the seller carries legal warranties that survive the deed, and the French tax administration applies its own flat-rate levy to the gain, sometimes through an accredited fiscal representative. This guide sets out the civil framework of a French sale, then the non-resident dimension: the capital gains rules, the exemptions, the représentant fiscal (fiscal representative) and the practical steps to organise before signing. It reflects the legislation in force and the case law of the Cour de cassation as of August 2026; it does not replace individual tax advice.

I. The French Sale Process: Binding Commitments and the Seller’s Statutory Obligations

A. From the compromis de vente to the acte authentique: when a foreign seller is committed

In France, a contract of sale is defined by Article 1582 of the Civil Code: “La vente est une convention par laquelle l’un s’oblige à livrer une chose, et l’autre à la payer” (a sale is an agreement by which one party binds himself to deliver a thing and the other to pay for it). The decisive feature is that the sale is a consensual contract. Article 1583 provides that “Elle est parfaite entre les parties, et la propriété est acquise de droit à l’acheteur à l’égard du vendeur, dès qu’on est convenu de la chose et du prix, quoique la chose n’ait pas encore été livrée ni le prix payé” — the sale is perfected between the parties, and ownership passes to the buyer as against the seller, as soon as they have agreed on the thing and the price, even if the property has not yet been delivered nor the price paid. For real estate, an acte authentique (notarised deed) is still required so that the transfer can be published at the land registry, but the parties’ agreement itself is what binds them.

In practice the transaction begins with a preliminary agreement. If it is a compromis de vente (preliminary sale agreement), both parties promise and bind themselves; if it is a unilateral promise, only the seller is bound. Article 1589 states that “La promesse de vente vaut vente, lorsqu’il y a consentement réciproque des deux parties sur la chose et sur le prix” — a promise to sell is equivalent to a sale when the two parties have given reciprocal consent on the thing and the price. A non-resident seller who signs such a document should therefore treat it as a binding commitment, not as a letter of intent. The Cour de cassation, 3rd Civil Chamber, 1 October 2020, no. 19-16.561 (published in the Bulletin) holds that, absent a contrary stipulation, the expiry of the deadline set for signing the notarised deed “ouvre le droit, pour chacune des parties, soit d’agir en exécution forcée de la vente, soit d’en demander la résolution et l’indemnisation de son préjudice” — it opens for each party the right either to seek forced performance of the sale or to seek its termination with damages. A seller who simply stops answering the notary does not walk away: the buyer may obtain a judgment that stands in lieu of the deed.

Deadlines in the preliminary agreement are nonetheless less rigid than they appear. In Cass. 3e civ., 13 February 2025, no. 23-18.418, the Court approved the finding that the parties to a promise had, after the deadline for the notarised deed had passed, “maintenu, postérieurement au terme fixé pour établir l’acte authentique, des échanges réciproques faisant ressortir leur volonté commune de parvenir à la vente effective de l’immeuble” — they had kept exchanging correspondence showing a common will to complete the sale, which amounted to an agreed extension of the effects of the promise beyond its stated term. The same reasoning appears in Cass. 3e civ., 20 March 2025, no. 23-20.170, where the sellers had accepted the draft deed after the term and prepared the property’s “état daté” (dated statement of condition). The practical lesson for the seller: do not rely on a calendar date to escape an agreement; continued negotiation after the deadline can be construed as extending it.

Conversely, when the buyer is at fault, the seller must be able to prove it. In Cass. 3e civ., 9 October 2025, no. 23-22.016, the Court quashed a decision that had blamed the buyers for the failure to sign the deed and ordered them to pay penalties, because the appeal court had disregarded the clear terms of the written agreement: once the parties had amended the payment schedule, the court could not ignore that amendment when deciding who had defaulted. Disputes over who failed to sign are decided on the written record, and the penalty clause (clause pénale) follows the defaulting party. For a non-resident seller, this means every exchange with the notary, the buyer and the agent should be kept in writing and dated.

Two statutory protections for the buyer frame the seller’s timeline. First, under Article L. 271-1 of the Construction and Housing Code (CCH), a non-professional buyer may withdraw from any act for the construction or acquisition of a dwelling within ten days from the day after the letter notifying the act was first presented: “l’acquéreur non professionnel peut se rétracter dans un délai de dix jours”. Second, Article L. 271-2 CCH prohibits receiving any payment from the buyer before that period has expired: “nul ne peut recevoir de l’acquéreur non professionnel, directement ou indirectement, aucun versement à quelque titre ou sous quelque forme que ce soit avant l’expiration du délai de rétractation”. A seller who takes a deposit early — even through an agent — exposes the agent and himself to the €30,000 fine provided by that article. The normal sequence is therefore: signature of the preliminary agreement, ten-day withdrawal period, deposit held in escrow by the notary or a licensed agent, then completion.

Most preliminary agreements are also conditional on the buyer obtaining a mortgage (condition suspensive d’obtention de prêt). If the loan condition fails, the sale lapses and the deposit is returned. Where the buyer’s financing is in his home country and the French bank refuses, the loan refusal must be proven; French case law requires a genuine refusal. The seller should agree on the terms of the condition at the outset and ask the notary to fix a precise date for its fulfilment, because the extension-by-conduct case law discussed above can also operate here.

Before the deed, the seller must also respect administrative constraints. For rural and agricultural land, the SAFER (regional land agency) holds a right of pre-emption. In Cass. 3e civ., 28 November 2024, no. 23-18.746 (published in the Bulletin), the Court held that a seller who challenges the price proposed by the SAFER may, at any time during the proceedings and even before the court fixes the value of the property, withdraw it from the sale — “il peut, à tout moment de la procédure, même avant la décision fixant la valeur vénale des biens, retirer ceux-ci de la vente”. More recently, Cass. 3e civ., 9 July 2026, no. 25-15.423 (published in the Bulletin) held that a letter to the evicted buyer based on inaccurate or incomplete information does not amount to a regular notification, so that the six-month deadline for contesting the pre-emption decision does not start running against that buyer. For municipal pre-emption rights, the notary files the declaration of intended transfer; the municipality then has a short period to decide. A foreign seller who plans a quick completion should have the notary verify at the outset whether the property falls within a pre-emption zone.

Finally, the technical due diligence file must be accurate on the day of the deed. In Cass. 3e civ., 19 February 2026, no. 24-10.524 (published in the Bulletin), the property was subject to a natural-risk prevention plan (PPRN) that was approved between the preliminary agreement and the notarised deed. The Court held that, under Articles L. 125-5 and L. 562-4 of the Environmental Code and L. 271-4 and L. 271-5 of the CCH, the technical file annexed to the deed must be updated to reflect the approved plan, “à peine de résolution de la vente ou de diminution du prix” — on pain of rescission of the sale or reduction of the price. Sellers who buy their diagnostics early in the process should therefore check their validity date before completion and update any document that has become stale.

B. Delivery and warranty: what the seller guarantees after the deed

Article 1603 of the Civil Code summarises the seller’s two main obligations: “Il a deux obligations principales, celle de délivrer et celle de garantir la chose qu’il vend” — to deliver the thing and to warrant it. Delivery means more than handing over the keys. In Cass. 3e civ., 25 May 2023, no. 22-12.870 (published in the Bulletin), the seller had sold a plot as building land; the Court restated that “Le respect de l’obligation de délivrance conforme du vendeur d’un terrain vendu comme étant constructible s’apprécie à la date du transfert de propriété” — conformity of the delivery is assessed at the date ownership passes, by reference to the local zoning plan (PLU) in force on that date. If the zoning changes between the preliminary agreement and completion, the risk falls on the seller: a seller who cannot deliver what he promised — land still buildable — may face rescission or damages even without bad faith.

The warranty itself has two heads, both set out in Article 1625: “La garantie que le vendeur doit à l’acquéreur a deux objets : le premier est la possession paisible de la chose vendue ; le second, les défauts cachés de cette chose ou les vices rédhibitoires” — peaceful possession and hidden defects. The first head, the warranty against eviction, applies automatically. Article 1626 states that “Quoique lors de la vente il n’ait été fait aucune stipulation sur la garantie, le vendeur est obligé de droit à garantir l’acquéreur de l’éviction qu’il souffre dans la totalité ou partie de l’objet vendu, ou des charges prétendues sur cet objet, et non déclarées lors de la vente”. If the buyer is evicted, Article 1630 gives him a right to the restitution of the price, to damages, and to the costs of the contract. But the guarantee is not limitless. In Cass. 3e civ., 28 September 2023, no. 22-15.236 (published in the Bulletin), an administrative authorisation to operate a care home had never been attached to the building nor guaranteed by the seller; its loss therefore did not amount to an eviction giving rise to warranty. A non-resident seller should never promise, orally or in writing, that permits, licences or planning rights will continue after the sale unless they are expressly guaranteed in the deed.

Hidden easements are a particular trap. Article 1638 allows the buyer of land burdened by undeclared, non-apparent easements to demand rescission or an indemnity. In Cass. 3e civ., 13 February 2025, no. 23-17.636 (published in the Bulletin), the Court recalled that “à défaut de clause expresse contraire, le vendeur est tenu de la garantie des servitudes non apparentes non déclarées lors de la vente”, and held that a clause stating that the buyer takes the property “as is” with no recourse against the seller “for any cause whatsoever, notably apparent or hidden defects” does not expressly exclude the guarantee of undeclared non-apparent easements. And in Cass. 3e civ., 6 July 2023, no. 22-13.179 (published in the Bulletin), the Court clarified that the “importance” requirement of Article 1638 conditions rescission only, not compensation: even a minor hidden easement entitles the buyer to damages. The seller’s safest course is full disclosure in the deed — a declared easement cannot found a later claim.

The second head of warranty, hidden defects (vices cachés), is governed by Article 1641: “Le vendeur est tenu de la garantie à raison des défauts cachés de la chose vendue qui la rendent impropre à l’usage auquel on la destine, ou qui diminuent tellement cet usage que l’acheteur ne l’aurait pas acquise, ou n’en aurait donné qu’un moindre prix, s’il les avait connus”. Article 1643 adds that the seller is liable even for defects he did not know, “à moins que, dans ce cas, il n’ait stipulé qu’il ne sera obligé à aucune garantie” — unless he has stipulated a clause excluding warranty. That clause is the standard shield of the private seller, and the standard “vente en l’état” (sold as seen) wording usually excludes the hidden-defects guarantee. But the shield fails in three situations, all illustrated by recent case law:

First, bad faith. In Cass. 3e civ., 5 June 2025, no. 23-14.619, the Court recalled the constant rule: “Le vendeur qui, ayant connaissance d’un vice lors de la conclusion du contrat, stipule qu’il ne le garantira pas, est tenu à garantie, nonobstant cette clause” — a seller who knows of a defect when contracting remains liable notwithstanding the exclusion clause. In that case the seller had herself built and carried out works, and her insurance file revealed the defect; the Court restored her liability. Likewise Cass. 3e civ., 13 November 2025, no. 23-18.899 quashed a decision that had applied the exclusion clause to roof defects, when the seller had not been warned by her roofer and could therefore not plead that she was unaware — the Court required the appeal court to examine her actual knowledge. Ignorance that results from not asking questions is no defence where the seller was in a position to know.

Second, the seller who built or carried out the works. Cass. 3e civ., 19 October 2023, no. 22-15.536 (published in the Bulletin) holds that a professional seller — and a seller who has behaved as a builder, having himself carried out the works giving rise to the defects — is presumed to know the defect, “de sorte qu’elle s’était comportée en constructeur et devait être présumée avoir connaissance du vice”, so that the exclusion clause is ineffective. This assimilation of the seller-builder to the professional seller was confirmed in Cass. 3e civ., 13 November 2025, no. 24-11.221. A non-resident who has extended, converted or renovated the property before selling should expect the exclusion clause not to protect him for defects in those works.

Third, the profile of the buyer. In Cass. 3e civ., 23 October 2025, no. 23-18.469, the Court restated that “la clause limitative ou exclusive de garantie des vices cachés est opposable à un acheteur professionnel de même spécialité que celui qui lui vend la chose” — the exclusion clause is opposable to a professional buyer of the same speciality (there, a commercial real estate sale between two professionals), unless the buyer proves the seller’s actual knowledge of the defect. The exclusion clause therefore works best, as intended, between private parties selling a private dwelling.

Where the guarantee applies, Article 1644 gives the buyer the choice: “Dans le cas des articles 1641 et 1643, l’acheteur a le choix de rendre la chose et de se faire restituer le prix, ou de garder la chose et de se faire rendre une partie du prix” — rescission with restitution of the price, or a price reduction. The action must be brought within two years of the discovery of the defect under Article 1648: “L’action résultant des vices rédhibitoires doit être intentée par l’acquéreur dans un délai de deux ans à compter de la découverte du vice”. A seller who has left France should therefore keep his file — contracts, invoices, correspondence, expert reports — for years after completion.

If a sale is annulled, the reciprocal restitutions are governed by the Civil Code. Cass. 3e civ., 5 December 2024, no. 23-16.270 (published in the Bulletin) held that the seller’s restitution claim after annulment includes the value of the buyer’s enjoyment of the property, which a buyer in good faith owes only from the date of the claim. And Cass. 3e civ., 16 January 2025, no. 23-10.133 — a case involving Irish buyers of a unit in a French holiday residence — recalled that annulment operates retroactively and that damages are only due “à raison d’un préjudice subsistant malgré les restitutions réciproques” — for a loss that survives the reciprocal restitutions. Sellers abroad are well advised to provide the French court with a reliable address and to respond to proceedings promptly: French procedure does not pause for international logistics.

II. The Non-Resident Seller: Taxation of the Gain and Practical Organisation

A. Capital gains tax: the 19% prélèvement, holding-period allowances and exemptions

French law treats the sale of French real estate as French-source income, wherever the seller lives. Article 164 B of the General Tax Code (CGI) lists among French-source income, at e bis, the capital gains referred to in Articles 150 U and following “lorsqu’elles sont relatives: 1° A des biens immobiliers situés en France ou à des droits relatifs à ces biens” — when they relate to real estate situated in France. For residents, the gain is taxed under Articles 150 V to 150 VH of the CGI; for non-residents, the specific regime of Article 244 bis A applies.

Article 244 bis A imposes on non-residents a prélèvement (levy) on the gain realised on the sale of French real estate. Its first sentence is important: “Sous réserve des conventions internationales” — subject to international tax treaties, which may reduce or eliminate the levy under the applicable double-taxation agreement. The levy applies to individuals who are not fiscally domiciled in France (244 bis A, I, 2, a), and, by its III bis, “les personnes physiques, les associés personnes physiques de sociétés, groupements ou organismes dont les bénéfices sont imposés au nom des associés et les porteurs de parts, personnes physiques, de fonds de placement immobilier … sont soumis au prélèvement au taux de 19 %” — individuals are taxed at the flat rate of 19%. Sales of shares in property-holding companies, such as an SCI (French real estate civil company), are caught by the same article (244 bis A, I, 3, c to h), which is one reason the sale of the shares of a French SCI is taxed in France even between two foreign residents.

The basis of the gain is computed under the same rules as for residents: 244 bis A, II, 1° refers back to Article 150 U and “aux articles 150 V à 150 VE”. This brings in the holding-period allowances of Article 150 VC CGI: the gross gain is reduced “de 6 % pour chaque année de détention au-delà de la cinquième” and “de 4 % au titre de la vingt-deuxième année de détention” — 6% per year of holding beyond the fifth, plus 4% for the twenty-second year. The allowances accumulate: after roughly twenty-two years of ownership, the gain is fully relieved of income tax, even for a non-resident. Acquisition costs (fees, notarial costs) and, for built property, certain capital expenditure can, under the rules of the code, increase the acquisition price and reduce the gain; the notary’s tax computation will reflect what the file can evidence. There is also a €15,000 de minimis threshold under Article 150 U, II, 6°, below which no gain is taxed at all.

Two exemptions matter particularly to owners abroad. First, the principal residence: Article 150 U, II, 1° excludes from the levy the gain on “les immeubles … qui constituent la résidence principale du cédant au jour de la cession” — the property that constitutes the seller’s principal residence on the day of the sale. This is the strongest exemption, and it has no holding-period condition; it applies to a property that was the seller’s main home, even if he now lives abroad. Second, the former-resident exemption of Article 150 U, II, 2°: a non-resident seller who is a national of an EU member state or of a state party to the EEA agreement having concluded an administrative assistance convention with France, and who was continuously fiscally domiciled in France for at least two years at some point in the past, may be exempt within the limit of one residence and €150,000 of net taxable gain, provided the sale occurs no later than 31 December of the tenth year following the transfer of his tax domicile out of France (or without time limit if he has had the free disposal of the property since at least 1 January of the year preceding the sale). Article 244 bis A, I, contains a parallel exemption for the former principal residence itself, sold by the end of the year following the transfer of domicile, provided the property was not made available to third parties in the meantime.

How the levy is paid matters to the seller’s cash flow. Article 244 bis A, IV provides: “L’impôt dû en application du présent article est acquitté lors de l’enregistrement de l’acte ou, à défaut d’enregistrement, dans le mois suivant la cession, sous la responsabilité d’un représentant établi en France, accrédité par l’administration fiscale” — the levy is paid at the registration of the deed, or within the following month, under the responsibility of a representative established in France and accredited by the tax administration. In practice the notary computes the gain, withholds the levy from the sale proceeds and pays it when the deed is published; the seller receives the net balance. Article 150 VG CGI requires a specific capital-gains declaration to accompany the deed — filed “à l’appui de la réquisition de publier” — and the act must state the basis of any exemption claimed, “sous peine de refus du dépôt ou de la formalité de l’enregistrement”. The notary therefore needs, before completion, the seller’s acquisition deed (or proof of the price paid), the evidence of costs, and a clear statement of the seller’s tax residence. A foreign seller who cannot locate the original purchase deed should ask the notary to obtain a copy from the land registry early: the computation cannot be completed without it.

B. The représentant fiscal and a practical checklist

The fiscal representative is the feature of a French sale that surprises most foreign owners. Article 244 bis A, IV conditions the payment of the levy on a “représentant établi en France, accrédité par l’administration fiscale”, and the accredited persons must meet strict conditions: no serious or repeated tax offences, no recent commercial sanctions, and adequate guarantees (244 bis A, IV, 1° to 3°). The exemption is set out in 244 bis A, IV bis: “L’obligation de désigner un représentant fiscal ne s’applique pas lorsque le cédant est domicilié, établi ou constitué dans un Etat membre de l’Union européenne ou dans un autre Etat partie à l’accord sur l’Espace économique européen ayant conclu avec la France une convention d’assistance administrative en vue de lutter contre la fraude et l’évasion fiscales ainsi qu’une convention d’assistance mutuelle en matière de recouvrement de l’impôt”. In other words, the exemption is drafted for sellers domiciled in an EU member state or in an EEA state that has concluded with France both an administrative assistance convention and a mutual recovery assistance convention. Sellers domiciled outside those states — which, on the plain wording of the provision, includes the United Kingdom after Brexit — should verify their position before completion: the appointment of an accredited representative is a legal requirement of the levy, and the notary will ask for proof of the situation when preparing the deed. This article does not constitute tax advice; the interaction with the France-UK treaty should be checked with a qualified adviser in each case.

The same practical discipline applies to the whole transaction. Drawing on the case law set out above, a non-resident seller should run through the following checklist:

1. Establish tax residence and treaty position first. The rate (19%), the exemptions (Article 150 U, II, 1° and 2°), and the representative requirement all turn on where the seller is fiscally domiciled under Article 4 B of the CGI and on the applicable convention. This should be settled before the price is negotiated, not discovered at the deed.

2. Instruct the notary early on pre-emption checks. Municipal pre-emption zones and, for rural land, the SAFER right require the declaration of intended transfer to be filed in advance. The case law on the SAFER — the possibility of withdrawing the property during price-review proceedings (Cass. 3e civ., 28 November 2024, no. 23-18.746) and the strict rules on notifying the evicted buyer (Cass. 3e civ., 9 July 2026, no. 25-15.423) — shows that timing and formalities are decisive.

3. Verify the diagnostics file before the deed. A stale or incomplete file can expose the sale to rescission or a price reduction, as shown by the 2026 risk-plan ruling (Cass. 3e civ., 19 February 2026, no. 24-10.524). The notary will list the mandatory diagnostics; check each date and validity period.

4. Plan for the buyer’s ten-day withdrawal and the loan condition. No funds may be received before the withdrawal period expires (Article L. 271-2 CCH), and the completion date must accommodate the mortgage condition. International buyers often take longer to obtain financing; a realistic date in the preliminary agreement avoids the extension-by-conduct disputes described above.

5. Organise signature in advance. The notary can prepare a power of attorney (procuration) so that the deed can be signed in France while the seller is abroad; identity documents may need certified translations. A non-resident who prefers an independent review of the preliminary agreement and of the completion steps can instruct a French real estate lawyer alongside the notary; the firm’s English-speaking real estate practice handles this type of file regularly. The notary will also need proof of the seller’s status — for example, the authorisation of both spouses where the property is community property under the applicable matrimonial regime, or the corporate documents where the seller is an SCI.

6. Expect the levy to be withheld at completion. The notary computes the gain, files the Article 150 VG declaration with the deed, and settles the 19% levy at registration (244 bis A, IV). The net proceeds are then transferred to the seller’s account, usually after any mortgage or lien registered against the property has been discharged.

7. Keep the file after the sale. The buyer may bring a hidden-defect action within two years of discovery (Article 1648 C. civ.), and the eviction warranty is not limited in time if the seller concealed a right of a third party. Retaining the deed, the diagnostics and the correspondence for at least five years is prudent; the exclusion clause protects the good-faith seller only.

8. Beware the traps specific to the non-resident seller. Do not promise that permits or administrative authorisations will continue after the sale unless they are expressly guaranteed in the deed (Cass. 3e civ., 28 September 2023, no. 22-15.236). Do not assume that a no-warranty clause protects a seller who knew of defects (Cass. 3e civ., 5 June 2025, no. 23-14.619) or who carried out the works himself (Cass. 3e civ., 19 October 2023, no. 22-15.536). And declare any easement, pipe or right of way in the deed: disclosure converts a hidden defect into a disclosed one (Article 1638 C. civ.).

Conclusion

Selling a French property as a non-resident is a civil transaction governed by a rigorous framework — a binding preliminary agreement, a ten-day buyer’s withdrawal right, loan conditions, pre-emption checks, an accurate diagnostics file, and legal warranties that survive the deed — combined with a specific tax regime: the 19% levy of Article 244 bis A, the holding-period allowances of Article 150 VC, the principal-residence and former-resident exemptions of Article 150 U, and the accredited fiscal representative where the seller’s country of residence is not covered by the statutory exemption. The Cour de cassation has, over the last three years, drawn the boundaries of the seller’s protection with precision: extension of the promise by conduct, strict conformity of delivery at the date of title transfer, disclosure of hidden easements, and the failure of exclusion clauses against the bad-faith or builder-seller. None of these rules is a trap for a well-prepared owner: they are, rather, the price of a system that protects both parties. Plan the transaction with the notary at the earliest stage, establish the tax position before negotiating, and keep the documents after completion. Further guidance on French property transactions and their documentation is available on the firm’s real estate practice page.