Lawyers firm expert in company registration Megève

  Yes, both members of a separated couple can benefit from the exemption in respect of the sale of the principal residence even if one member of the couple continues to live in the property. The exemption is subject to the fact that the property really was the couple's principal residence until the time of separation and that it subsequently continues to be the main residence of one member of the couple. 

A non-resident may sell real estate property situated in France. In principle these disposals are subject to tax in France. However, certain provisions can limit or eliminate this tax. The sale of a property in France by a non-resident individual comes under the regime of real estate capital gains. Since 1 January 2015, the real estate capital gains of individuals are taxed at a single rate of 19% to which social charges are usually added (subject to what we discuss below). The provisions for exemption from real estate capital gains existing for residents also apply to non-residents (e.g., disposal of property held for more than 30 years, or for more than 22 years in some cases, etc.). 

The lender's preferential right is a security interest on the property. This security is unknown in most States. In an international context the PPD cannot always be used. The validity of the PPD assumes that it is recognised under the law of the country where the property is located (French law) and under the law applicable to the loan agreement. Conversely the lender's preferential right will not be recognised if it unknown in either of these two law systems. If the property is located in France and if French law is applicable to the loan agreement, a PPD may be taken

          The application of social charges to capital gains realised by non-residents is currently the subject of a procedure against the French State. The French Council of State (“Conseil d’Etat”) has also referred a question to the ECJ for a preliminary ruling on whether these social charges can be levied on persons not benefiting from the scheme that these contributions are intended to fund. To date, the issue of the payment of social charges by non-residents is still not fully resolved. However, it would appear that the Direction générale des finances publiques (the French Department of Public Revenue) has communicated guidelines to its regional branches with a view to ensuring that the Land Registry Office and local tax offices should no longer require the payment of social charges in the situations covered by the ECJ case law of February 2015 and that of the Council of State of July 2015. It would therefore seem that in the current state of the law, sales of real estate undertaken by taxpayers from a social security scheme of another Member State of the EEA will not entail the payment of social charges. However, it is necessary for the taxpayer in question to provide evidence to their notary of their affiliation to a social security scheme in a foreign Member State of the EU or EEA, by means of either a social security card or a certificate of affiliation.

Under current law the immediate outbuildings of the primary residence (e.g., the utility room of the same property) enjoy exemption from real estate capital gains tax provided that the disposal of these outbuildings takes place simultaneously with that of the main residence. The disposal will be deemed to have been made simultaneously if the disposals take place within a "normal timeframe". To watch the video of the interview with Ms. Alexandra ETASSE on the role of the notary, notary's fees and buying property, follow this link. 

The system of “protected sector” (“secteur sauvegardé “) of sales in a future state of completion concerns sales bearing on premises to be used principally for residential purposes or for both professional and residential purposes and including an obligation to pay a deposit prior to completion of the construction. In this case, specific provisions (schedule of payments, guarantee of completion, etc.) must be observed under penalty of nullity of the contract and punitive sanctions. By the general nature of the definition of protected sector, the question of the compatibility of certain contracts can be raised such as hire-purchase, transfer of land against premises to be constructed, sales of buildings to be renovated (“vente d’immeuble à rénover) Moreover, the law requires that a contract of sale of a building to be constructed (“vente d’immeuble à construire”)together with provisions specific to said sector be drawn up from the moment that he who undertakes to construct a house or to have it constructed procures the land directly or indirectly.