Key Points: CGI Art. 244 bis A — Non-Resident Withholding on French Property Gains
CGI Art. 244 bis A applies to all non-resident individuals and entities, and to French civil companies (SCIs, FPIs) proportionately to non-resident associates/unitholders. Covers gains on French property, property rights, and shares in real-estate-predominant companies (>50% French immovable assets).
Rate for non-resident individuals: 19% IR (same as residents) + 17.20% social charges (reduced to 7.5% for EU/EEA/Swiss residents under a mandatory home-state social security regime). Rate for non-resident entities: 25% IS rate.
The gain is calculated using exactly the same rules as for French residents (7.5% flat or actual acquisition costs; 15% flat or actual works; holding-period abatements). Most resident exemptions apply, including the €15,000 threshold and holding-period abatements.
The standard principal residence exemption is not available to non-residents, but two specific exceptions exist: (1) departure-from-France exemption — sale by 31 December of the following year, no third-party occupation; (2) EU/EEA one-dwelling exemption — capped at €150,000 net gain, within 10 years of departure or at any time with free disposal.
Non-residents domiciled outside the EU/EEA must appoint an représentant fiscal agréé (accredited fiscal representative) where the transaction exceeds €150,000. EU/EEA residents may proceed without a representative.
Non-residents are subject to IFI on French-situs real property assets above the threshold (CGI Art. 964). No principal residence abatement is available. No credit of the 3% annual tax (CGI Art. 990 D–990 F) against the IFI. Convention verification required for share-sale gains.

Applicable Rates

Non-resident individuals 19%
Income tax rate (CGI Art. 244 bis A, III bis). Same as French residents. Plus social charges below.
Non-resident entities (IS) 25%
Standard IS rate. EU/EEA entities assessed on IS basis applicable to resident entities.
Social charges 17.2%
Standard rate. Reduced to 7.5% for EU/EEA/Swiss residents under mandatory home-state social security, not covered by a French regime.

The prélèvement is liberatory of French income tax for the amounts subject to it. For entities subject to IS, the levy is not liberatory but is offset against IS due, with any excess refundable (subject to conditions: residence in a state with an administrative assistance agreement and non-ETNC status — CGI Art. 238-0 A). The high-value surtax (CGI Art. 1609 nonies G) and the exceptional income surtax (contribution exceptionnelle sur les hauts revenus) are also applicable where relevant.

Who Is Subject to the Withholding

CGI Art. 244 bis A applies to:

  • Individuals not fiscally domiciled in France;
  • Legal persons and organisations of any form whose registered office is located outside France;
  • French civil companies (SCIs, etc.) whose associates are non-residents, to the extent of those associates’ shares;
  • French fonds de placement immobilier (FPIs) proportionately to the units held by non-resident holders.

The scope extends to gains realised by French partnerships with non-resident associates: the levy applies at the entity level, calculated on the proportion of the gain attributable to non-resident associates.

Gains Subject to the Levy

The levy covers:

  • Gains on the direct sale of French property or property rights (usufruct, bare ownership, easements, surélévation rights, emphytéotique leases, etc.);
  • Gains on the sale of shares or interests in real-estate-predominant companies (sociétés à prépondérance immobilière) situated in France, including:
    • Shares in listed companies where the seller holds at least 10% of the capital, and the company’s assets are predominantly French real property (assessed at the close of the three preceding financial years);
    • Shares or interests in unlisted entities (no minimum threshold) where the entity’s assets are predominantly French real property.

A company is real-estate-predominant where more than 50% of its asset value consists of French immovable property, excluding property used in the entity’s own industrial, commercial, agricultural, or professional activity. The ratio compares: the market value of French immovable property (excluding operationally-used property) against the total market value of all worldwide assets.

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Convention Limits on France’s Right to Tax Share Sale Gains

Where France has the right to tax the direct sale of French property, most conventions confirm this right. But France’s right to tax gains on shares of a real-estate-predominant company must be verified convention by convention. Absent a specific provision, the situs-state taxing right over shares does not extend to share gains under most conventions — the OECD 2017 model now contains such a provision, but many older French conventions do not (CE 25-2-2004 n° 250328 regarding the old France-UK convention: UK company held not liable to French tax on sale of French civil company shares).

The Gain: Same Rules as for Residents

Where the seller is an individual subject to income tax, the gain is calculated using exactly the same rules as for French residents: sale price minus acquisition price (with 7.5% flat or actual acquisition costs and works at 15% flat or actual), then reduced by the holding-period abatements. For entities subject to IS, the gain is determined on an IS basis; or, for non-EU/EEA entities (third-country entities), by a simplified method: sale price minus acquisition price reduced by 2% per full year of ownership for built property.

Exemptions Available to Non-Residents

Most resident exemptions apply to non-residents, including the €15,000 price threshold (per vendor’s share) and holding-period abatements (the same annual abatement schedule as for resident individuals).

The following resident exemptions are not available to non-residents:

  • The principal residence exemption (since a non-resident’s principal residence is by definition outside France) — with two specific exceptions below;
  • The first non-primary cession exemption (CGI Art. 150 U, II-1° bis: requires the seller not to have been owner of their principal residence in France for 4 years, which a non-resident cannot satisfy);
  • The retirees and disabled persons exemption (CGI Art. 150 U, III) for former ancienne résidence principale of retirees and invalids of modest means.

Exception 1: Former Principal Residence on Departure from France

Three Conditions — All Must Be Met (CGI Art. 244 bis A, I-1, al. 4)
  1. The fiscal domicile was transferred to an EU member state, or to a state with both an administrative assistance convention and a mutual assistance convention on recovery, that is not a non-cooperative state (ETNC: CGI Art. 238-0 A).
  2. The sale takes place by 31 December of the year following the year of the fiscal domicile transfer.
  3. The property was not made available to third parties (on a paid or free basis) between the domicile transfer and the sale.

Exception 2: EU/EEA Non-Resident Exemption for Former Residence in France

EU/EEA One-Dwelling Exemption Parameters (CGI Art. 150 U, II-2°)
Who qualifies EU/EEA residents (Iceland, Liechtenstein, Norway); admin assistance convention required; not ETNC
Limit One dwelling per taxpayer
Cap €150,000 of net taxable gain (after holding-period abatement)
Time limit (standard) By 31 December of the 10th year following the year of fiscal domicile transfer (from 1 January 2019)
No time limit (alternative) Where seller has had free disposal of the property at least since 1 January of the year preceding the sale
Scope The dwelling itself only — NOT sales via interposed company; NOT share sales of real-estate-predominant companies
Third-country extension Extended to nationals of states with a non-discrimination clause in a comparable situation (BOI-RFPI-PVINR-10-20 n° 270)

The Accredited Fiscal Representative

Non-residents domiciled outside the EU and EEA (Iceland, Liechtenstein, and Norway) must appoint a représentant fiscal agréé (accredited fiscal representative) established in France, who assumes personal liability for the declaration and payment of the withholding. The representative’s obligation applies where the transaction exceeds €150,000. EU and EEA residents may proceed without a representative. The representative signs the 2048-IMM or 2048-TAB declaration and is responsible for the payment at deed registration.

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Practical Point: Appoint the Representative Before the Deed

The accredited fiscal representative must be appointed before the notarial deed is signed — not at the time of payment. In practice, the notaire handling the transaction will typically request proof of the representative’s appointment well in advance of the deed. Non-EU/EEA sellers who fail to appoint a representative risk the notaire refusing to complete the transaction. The representative’s personal liability for the withholding means accredited firms will require full supporting documentation before signing the 2048-IMM/2048-TAB.

IFI for Non-Residents on French Property

Non-resident individuals are subject to the IFI on their French-situs real property assets, where the net taxable value of those assets exceeds the IFI threshold (CGI Art. 964). The IFI taxable base for non-residents comprises: French property held directly; shares in French or foreign companies to the extent their value is attributable to French real property; and other French real property assets. The same IFI rules apply as for residents, except that non-residents cannot benefit from the principal residence abatement. Where a non-resident holds shares in a foreign company subject to the 3% annual tax (CGI Art. 990 D–990 F), no credit of the 3% tax against the IFI is permitted.

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IFI Scope: French-Situs Only for Non-Residents

Unlike French residents, whose IFI base is worldwide, non-residents are taxed on French-situs assets only. However, this narrower base still captures French property held through foreign companies (to the extent of the real property fraction of those companies), not just directly held land and buildings. A non-resident who holds French property through a foreign holding company must include the French property component of those shares in their IFI return, valued at French valeur vénale rules.

Summary: Pre-Transaction Checklist for Non-Resident Sellers
Verify the applicable convention: before relying on CGI Art. 244 bis A for share-sale gains, confirm that the applicable bilateral convention grants France the right to tax gains on shares of real-estate-predominant companies. Many older French conventions do not contain the OECD 2017 model Art. 13 provision.
Determine the applicable social charge rate: EU/EEA/Swiss residents covered by a mandatory home-state social security regime (not a French regime) pay only 7.5%, not 17.20%. Obtain documentary proof of home-state coverage before the deed — the notaire will require it.
Check principal residence exemption eligibility: if you sold a property that was your French principal residence on departure, verify whether the departure exemption applies (timescale and non-occupation conditions). If you are EU/EEA resident, check whether the CGI Art. 150 U, II-2° one-dwelling exemption applies (10-year window or free-disposal alternative).
Appoint fiscal representative if required: if you are domiciled outside the EU/EEA and the transaction exceeds €150,000, appoint an accredited fiscal representative before the deed is signed. The representative must file the 2048-IMM/2048-TAB and bear personal liability for the withholding.
Check holding-period abatements: the same abatement schedule as for residents applies to non-residents. Full IR exemption after 22 years; full exemption from both IR and social charges after 30 years. Even where 244 bis A withholding is due, the abatements reduce the net taxable base substantially for long-held properties.
Questions About Non-Resident Property Gains in France?

Our French law practice advises non-resident individuals and entities on CGI Art. 244 bis A withholding, social charge rate eligibility, fiscal representative appointment, the principal residence exemptions, and IFI obligations for non-residents holding French property.

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Legal Notice. This article is provided for general information and educational purposes only. It does not constitute legal or tax advice. The application of the regime requires systematic verification of the applicable bilateral tax convention. The social charge rate applicable (17.20% or 7.5%) depends on the seller’s mandatory home-state social security coverage status, which should be verified case by case. The ETNC list (CGI Art. 238-0 A) is updated periodically. Always consult a qualified French tax lawyer or notaire before any French property transaction involving a non-resident seller.