How do you sell your primary residence tax-free?

The sale of a main residence may, under certain conditions, be totally tax exempt. However, thetax administration imposes strict rules to benefit from this exemption. It is therefore crucial to fully understand these conditions in order to avoid any unpleasant surprises.

This guide explains in detail the criteria to be met, the exceptions and the tax specificities associated with the Selling your main residence without tax.

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Understanding the exemption from capital gains on the main residence

La Real estate value corresponds to the difference between selling price And the acquisition price of a property. Normally, this capital gain is subject toincome tax And to social security contributions. However, if you sell your main residence, the added value carried out during the sale is tax exempt, subject to meeting certain criteria.

The real estate market being fluctuating, it is advisable to anticipate the put up for sale of your property in order to maximize your chances of selling it in the best conditions. It is also essential to accurately estimate the Amount of capital gain tax, if the sale does not benefit from an exemption.

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Conditions to benefit from the exemption

Selling your home while benefiting from tax exemption requires meeting several conditions. THEtax administration Ensure that the property sold corresponds to the main residence of the owner. Here are the criteria to be met.

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1. Actual and usual occupancy

One of the fundamental criteria to benefit from the exemption is that the property sold must constitute your main residence At Day of the sale. In other words, you must have lived there usually and effectively for a sufficient period of time for thetax administration consider this home to be your main home.

This means that you must be able to justify your occupation through various documents: energy bills in your name, home insurance contracts, or even tax return mentioning the address of the property as a main residence.

If you leave your home before the sale, you keep the exemption provided that the put up for sale intervenes in a normal delay. In general, this deadline is set at One year, but it can be extended in certain exceptional situations, such as a slowed real estate market. In some cases, especially if the property is put on sale immediately after the owner moves out, the deadline may be more flexible.

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2. Immediate and necessary dependencies

The exemption extends to immediate and necessary dependencies, that is to say the spaces annexed to the main residence that are directly attached to it. This may include:

• A garage located in the same building or on the land of the house.
• A cellar forming part of the home.
• A garden or a private courtyard which is a functional space for the main property.

These dependencies should be considered as a natural extension of housing and not be used for commercial or rental purposes separately. If these dependencies are rented separately before sale, they may lose their dependent status and, as a result, not be tax exempt.

It is therefore advisable, before the sale, to ensure that these outbuildings are clearly mentioned in the bill of sale as an integral part of the main residence.

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3. Transfer deadline

It is recommended that the put up for sale intervenes in a normal delay after the home has ceased to be your main residence. If you wait too long to sell, thetax administration could consider the property as a second home, which would make the capital gain taxable.

The usually accepted time limit is one Year, but some specific situations may justify a longer delay. For example, if you had to leave your home for urgent professional or personal reasons.

If the sale takes more than one year, it is advisable to document the reasons for the delay (unfavorable real estate market, necessary work, absence of a buyer) and provide them to thetax administration in case of control.

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Exceptions and special cases

Even if the general rule provides for an exemption, certain specific situations may influence taxation on real estate capital gains.

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1. Sale before five years of occupation

One amendment to the 2025 finance bill Proposes to condition the exemption of real estate capital gain To a minimum term of employment of five years as a primary residence. However, some exceptions are provided for compelling family, medical or professional reasons.

If you sell your home to buy a new main residence, you can also benefit from the exemption, under certain conditions.

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2. Second homes

Contrary to a main residence, the sale of a second home is subject to the real estate capital gains tax. However, some Abatements for length of detention can reduce taxation:

• Total income tax exemption thereafter 22 years of detention.
• Exemption from social security contributions thereafter 30 years of detention.

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Calculation of taxable capital gain

If the sale is not exempt, the gain is calculated by subtracting the acquisition price ofthe selling price, adjusted for eligible expenses and expenses.

The taxable amount is then subject to:

• Income tax : 19%
• Social security contributions : 17.2%

This brings total taxation to 36.2% Of added value carried out during the sale.

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Administrative procedures

During the sale, the notary takes care of generally to declare and pay theincome tax on the added value on behalf of the seller.

It is essential to provide all supporting documentation to prove that the property sold was your title of main residence in order to benefit from the exemption.

THEtax administration can also examine your reference tax income, an element that may influence eligibility for certain tax exemptions or reductions.

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Tips to optimize your sale

• Anticipate the sale : do not wait too long after leaving the house.
• Gather your supporting documents : electricity bills, home insurance certificate proving your occupation.
• Consult a notary or a tax specialist : to ensure compliance with tax obligations.
• Check your reference tax income : Some devices may impact your eligibility for the exemption.
• Set a realistic selling price : A well-valued price makes it easier to sell and reduces the risk of tax requalification.

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Conclusion

Selling your primary residence tax-free is possible, provided that the criteria established by thetax administration. La put up for sale must intervene in a normal delay, the property must have been inhabited usually and effectively, and the immediate and necessary dependencies must be included in the sale.

Before engaging in a transaction, it is strongly recommended that you consult a legal or tax professional. This will allow you to ensure that all the conditions are met to optimize tax benefits and avoid any unpleasant surprises. Do you want to sell to buy a new property? Trust real estate hunters for your search, learn more about our service of buying with a real estate hunter.

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FAQS

Can I sell my primary residence immediately after purchase and be tax exempt?

Yes, as long as the accommodation was your main residence At Day of the sale and that you lived there in such a way usually and effectively.

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What if I need to sell my home after moving?

You generally have a normal delay of one year to sell your property while maintaining tax exemption.

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Are outbuildings such as a garage or a garden also exempt?

Yes, if they are considered to be immediate and necessary dependencies and sold with the main residence.

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Is the capital gain completely exempt even in the event of a sharp rise in the real estate market?

Yes, regardless of the increase in real estate market, the exemption applies if the property meets all the required conditions.

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Does my reference tax income have an impact on the capital gain exemption?

In some cases, thetax administration can use the reference tax income to determine eligibility for certain exemptions.