Do you need a real estate fiscal representative in France?
Selling a real estate property may require the designation of real estate fiscal representative in France, though there are some instances where this isn’t the case.
There exists an automatic exemption for the designation of the real estate representative in three cases:
- When the assignor is domiciled, established or constituted in a European Union member state, or in any other state that is a contracting party to the Agreement of European Economic Area, and with which France has signed certain conventions covering administrative assistance (such as Island and Norway)
- For transfers that have a price lower or equal to €150,000. This threshold is calculated in accordance with the assignor.
- For transfers that are exempt of added value with regard to income taxation and social charges that depends on the holding duration of the property (22 years for income taxation and 30 years for social charges)
You will have to appoint a fiscal representative if you do not qualify for one of these three conditions. Note that this appointment remains mandatory even when your property loses in value.
When appointing a fiscal representative in France is a legal requirement
In some cases, it is mandatory to appoint a fiscal representative in France. Here are the different situations in which this is the case.
If the Assignor is a non-French resident private individual
The appointment of a fiscal representative is mandatory when :
- the selling price is above €150.000
- the property is held for less than 30 years.
Note: independently of the amount of added-value a fortiori in case of loss in value
If the assignor is a company or a moral person registered out of France
The appointment of a fiscal representative is mandatory in any case:
- no matter the selling price
- no matter the period of time in which the party have owned the property
If the assignor is a company of persons registered in France and is not subject to company taxation
- If every associate is a physical person: the appointment of a fiscal representative is mandatory if the share held by non-French residents is above €150,000 and the property held for less than 30 years
- If one of the associates is a moral person who’s registered out of France: the appointment of a fiscal representative is mandatory to this associate.
- If the associates are both physical persons and moral persons registered out of France: the appointment of a fiscal representative is mandatory to the foreign company, and for the associates that are physical persons, if the share held by non-residents is (taking into account all non-resident persons physical and moral) is above €150,000 and the property held for less than 30 years.
What is the role of a real estate fiscal representative in France?
The real estate fiscal representative calculates the gain or the loss in value related to the sale of your property and is in charge of all the fiscal procedures, by making and signing the forms required by the fiscal administration.
He is responsible for the calculation of the change in value of your property and is committed to pay your taxes as well as any potential complementary penalty if the fiscal administration questions the declaration.
As a result, you have nothing to worry on that score: once your fiscal representative designated you have nothing to worry about from the tax administration.
What is the fiscal charge on the change in value of a property ?
- An income tax of 19%
- Social charges (CSG, CRDS, and additional taxes) which rate depends on your country of origin: 7,5% for the residents member of the Agreement of European Economic Area and Switzerland, 17.2% for any other case.
- A 3% tax on the current value of the building for some moral persons.
- In some cases, there is also tax on land that has become building spots.
Need help with your French tax or fiscal charges?
French Tax Online, via its subsidiary FTO Tax representative, assists in the sale of your property and takes entirely care of all fiscal aspects directly with your notary.
All you have to do is to upload the necessary documents on your personal space and we take over the rest of the process. If you have any inquiries with respect to that, do not hesitate to ask!