TLDR: For capital gains on real estate, convert all elements (sale price, purchase price, costs) into euros at the exchange rate on the date of each transaction. For onerous transfers, use the rate on the day of sale if payment is in cash, or an estimate on the date of the agreement if payment is deferred. For transactions prior to the euro, first convert to francs at the rate on the day, then to euros at the fixed rate of 6.55957 FRF/€.
General rules for real estate capital gains
All elements determining the capital gain (sale price, purchase price, costs of increase or decrease) denominated in foreign currency must be converted into euros at the exchange rate applicable on the date of each transaction. This rule applies in accordance with Article 150 V of the French Tax Code (CGI).
Special cases: transactions prior to the euro
If the transaction took place before the introduction of the euro, the conversion is done in two steps:
- Convert the foreign currency into French francs (FRF) at the exchange rate on the date of the transaction.
- Convert the amount in francs into euros at the fixed rate of 6.55957 FRF per 1 euro.
Onerous transfers of real estate
Cash payment
If the price is denominated in foreign currency and payable in cash, the conversion into euros is done at the exchange rate on the day of the sale.
Deferred payment
If the price is payable in installments, the tax is calculated based on the estimated real value of the foreign currency on the date of the agreement. An additional duty may be required if the amounts actually paid exceed this estimate.
Clarifications on elements to be converted
The conversion applies exclusively to the following elements:
- Sale price.
- Purchase price.
- Costs of increase or decrease.
No other component (ancillary fees, local taxes, etc.) is subject to this rule unless explicitly mentioned in the tax texts.
Exclusions and limitations
The above rules do not apply to:
- Movable property (e.g., digital assets, securities).
- Gratuitous transfers (inheritance, gifts).
- Specific transactions governed by other articles of the CGI (e.g., 150 H, 150 B).