No. Contrary to popular belief, it is possible to pay no capital gains tax on the sale of a second home. As a reminder, a primary residence is always exempt. However, the criteria set by the 2012 Finance Law, which apply to sales completed since February 1, 2012, must be met.

First, the taxpayer must not own their primary residence. Second, this sale must be their first. Finally, the seller must use the proceeds from the sale of their property to purchase or build a home that will become their primary residence. Note that the individual has twenty-four months to use the proceeds from this sale and complete their real estate project.

19% TAX AND 15.5% SOCIAL SECURITY CONTRIBUTIONS

Otherwise? The exemption is revoked for the year of the breach. This means he will have to pay the tax authorities 19% income tax and 15.5% social security contributions on the capital gain realized.

The allowances applicable according to the length of time the property has been held, which allow the amount of taxes to be reduced, will certainly be applied, but with the old rules if the sale took place before the entry into force of the reform of real estate capital gains on September 1, 2013.