TLDR: The sale of the main residence in France is exempt from capital gains tax, provided the property is effectively the main residence at the time of the transfer. The exemption applies automatically and also covers immediate dependencies, such as garages or cellars, if sold simultaneously.
Conditions for exemption
The sale of the main residence is exempt from capital gains tax if the property is the main residence at the time of the transfer. This exemption applies automatically, with no need to declare the capital gain. The property must be effectively occupied as the main residence on the day of the sale.
Immediate dependencies
The exemption extends to immediate and necessary dependencies of the main residence, such as garages, cellars, or parking spaces, provided they are transferred at the same time as the main residence. Even if the dependencies are sold to different buyers, the exemption remains valid, as long as they form an "inseparable whole" with the dwelling.
Exclusion cases
The exemption does not apply if, at the time of the sale, the property is rented out, occupied by third parties, or vacant. Additionally, the exemption is lost if reoccupation before the transfer is motivated by mere convenience, without a genuine intention to live there permanently.
Special cases
In special cases such as separations or moves abroad, the exemption can be retained only if the sale occurs within specific timeframes and the property is not made available to third parties. If an ex-spouse continues to live in the property as their main residence until the sale, both parties can benefit from the exemption, provided the transfer takes place within a "reasonable period" from the listing.
Property occupied until listing
The exemption is maintained if the transfer occurs within a "reasonable period" and the property has not been rented out or occupied by third parties after the move. This principle also applies in cases of damage that renders the property uninhabitable.
Dependencies sold simultaneously
To be tax-exempt, the immediate and necessary dependencies of the main residence must form an inseparable whole with it and, consequently, be transferred at the same time. The fact that the sale is made to different buyers does not prevent the benefit of the exemption, provided all other conditions are met.
Dependencies sold separately
If the dependencies are sold separately or at a later time, the exemption does not apply, unless the transfer occurs within a "reasonable period" relative to the sale of the residence.