TLDR: The capital gains tax exemption extends to immediate and necessary outbuildings (garage, parking, etc.) sold simultaneously, even to different buyers. It also covers cases of separation, divorce, or termination of a PACS/civil partnership if the ex-spouse or partner occupies the property until its sale and the transfer occurs within a reasonable timeframe. For couples in the process of divorce, the exemption may apply to a building under construction intended to become the main residence, under certain conditions. It also applies to partners in non-transparent real estate companies who occupy a property owned by the company as their main residence. However, the exemption does not apply to land sold as building land (except for functional outbuildings), houseboats, or if the property is no longer the main residence at the time of sale (e.g., rented out, occupied free of charge, vacant, etc.).
Outbuildings and annexes of the main residence
The exemption applies to immediate and necessary outbuildings sold simultaneously with the main residence, such as garages, parking spaces, sheds, caretaker's houses, courtyards, or access paths. These outbuildings can be sold to different buyers without losing the benefit of the exemption, provided they form an inseparable whole with the dwelling.
The exemption does not apply to land sold as building land, unless it consists of premises or parking areas used as annexes to the dwelling (garage, parking) or land serving as access routes to the dwelling and its annexes.
Separation, divorce, or termination of PACS/civil partnership
In cases of separation, divorce, termination of a PACS, or end of cohabitation, the exemption may apply even if the property is no longer the seller's main residence at the time of sale. It is sufficient that:
- one of the ex-spouses, partners, or cohabitants continues to occupy the property as their main residence until its sale;
- the transfer takes place within a reasonable timeframe.
For couples in the process of divorce, the exemption may also apply to the sale of a building under construction, provided that:
- the building was intended to become the main residence;
- the spouses do not own another property during the construction.
Properties under construction and temporary occupation
A building under construction is not, in principle, considered the main residence at the time of sale. Therefore, the exemption does not apply, except in the cases of separation or divorce mentioned above.
The exemption may also apply if the property is occupied by the future buyer with whom a sales agreement has been signed, provided that:
- the temporary occupation agreement is intrinsically linked to the sale;
- the sales contract is concluded within a reasonable timeframe from the signing of the agreement.
Non-transparent real estate companies
The exemption extends to a partner in a non-transparent real estate company (Art. 8, 8 bis, or 8 ter of the French Tax Code) who occupies, as their main residence, a property or part of a property owned by the company, provided that the company makes it available to them free of charge, in law or in fact.
Specific exclusions
The exemption does not apply to:
- sales of houseboats, considered as movable property;
- cases where, at the time of sale, the property is no longer the seller's main residence (e.g., if it is rented out, occupied free of charge by family members or third parties, has become vacant, or is at the disposal of a person entitled to a tied accommodation).
Temporary conditions
The exemption may be maintained if the property was occupied by the seller until its sale and the transfer takes place within a reasonable timeframe, provided that the property was not rented out or occupied free of charge by family members or third parties during this period.