French General Tax Code
In forceAny transfer of a right to a lease or of the benefit of a promise to lease relating to all or part of an immovable property, regardless of the form given to it by the parties, whether it is described as a transfer of key money, severance pay or otherwise, is subject to registration duty determined in accordance with the tariff provided for in article 719 (1).
Duty is levied on the amount of the sum or indemnity stipulated by the transferor in his favour or on the actual market value of the transferred right, determined by an estimated statement from the parties, if the agreement contains no express stipulation of a sum or indemnity in favour of the transferor or if the sum or indemnity stipulated is less than the actual market value of the transferred right. The duty thus levied is independent of that which may be due for the enjoyment of the leased property.
The provisions of this code concerning the tax treatment of transfers of the right to a lease or the benefit of a promise to lease relating to all or part of an immovable property, are applicable to all acts or agreements, whatever their nature, terms, form or classification, which have the effect, directly or indirectly, of transferring the right to the enjoyment of immovable property or premises falling within the provisions of the articles L. 145-1 to L. 145-3 of the French Commercial Code.
(1) This tariff applies to deeds drawn up and agreements entered into on or after 1 December 1995.
