Sale of the main residence : capital gains exemption

The capital gain made on the sale of your main residence is fully exempt if the property is your main home at the time of sale. This exemption also covers immediate and necessary outbuildings, such as a cellar or parking space, sold at the same time as the home.

If you move before selling, the exemption may be maintained subject to certain conditions: having occupied the property until it was put on the market, selling within a reasonable period (in principle one year), and neither renting it out nor allowing it to be occupied free of charge in the meantime. The notary can examine your situation before the transfer.

What the exemption covers

A capital gain arises when you sell a property for more than you acquired it for. In principle, a property capital gain is subject to income tax and social security contributions. However, the sale of the main residence benefits from a full exemption.

According to Service-Public.fr, this exemption covers the property and its appurtenances. To be exempt, immediate and necessary appurtenances (cellar, garage, parking space, courtyard) must be sold at the same time as the property; if they are sold to different buyers, the sales must take place within a reasonable period.

The rule applies both to the sale of a flat and to that of a house. In Saint-Denis, it may therefore concern an owner selling their leasehold flat with its cellar or parking space, as well as an owner selling their house.

The tax issue is distinct from the valuation of the property. Saint-Denis Immobilier offers a market value property valuation for a divorce, gift, inheritance or division. Assessment of entitlement to the exemption, however, depends on the seller’s tax circumstances.

Recognising your main residence

Your main residence is your usual and actual home: it is the dwelling in which you live for most of the year. This occupancy criterion is essential for distinguishing the property sold from another residence.

Simply owning a flat is therefore not enough, in itself, to establish that it is your main residence. The actual use of the property matters. To apply the general rule, the property must have that status at the time of sale.

The information sheet on property capital gains sets out this definition and the main exemptions. If your occupancy situation has changed, describe it precisely to the notary rather than relying solely on the property’s designation.

Moving out before the sale: what should you check?

An owner may leave their home while its sale is still in progress. The date of moving, the listing and the sale itself should not be confused: the general rule links the status of main residence to the time of sale.

Leaving beforehand therefore raises a separate issue from that of a property still occupied by its owner at the time of sale. According to the authorities, if you have already left the property on the day of sale, the exemption remains possible subject to three conditions: you must have occupied it until the day it was put up for sale, sell it within a normal period (in principle one year, assessed according to the circumstances), and have neither rented it out nor allowed relatives or third parties to occupy it free of charge in the meantime. The exemption cannot be inferred solely from the fact that the property was previously your main residence.

Before the sale, tell the notary when you left the property and what has happened to it since your departure. In particular, specify the date it was put up for sale and whether it has been rented or occupied. The notary will be able to assess your situation and advise you on the applicable tax treatment.

However, it is important not to confuse voluntarily leaving before the sale with situations involving separation or entering a care facility: these situations are subject to their own conditions.

Separation or divorce: occupancy until the property is put on the market

A separation may change occupation of the home before its sale. According to Service-Public.fr, in the event of separation or divorce, one of the former partners must have occupied the home until it was put up for sale. This indication concerns married couples, civil partners or cohabiting couples.

The departure of one member of the couple must therefore not be examined in isolation. The other person’s occupation and the time when the property was put up for sale must also be taken into account. According to the authorities, the sale must also take place within a normal period (in principle one year) from the date it was put up for sale, with no specific period required between the separation and the sale being put on the market; merely referring to the former shared life is not sufficient.

For an apartment or house owned in the context of separation, provide the notary with the chronology of occupation and the decision to put it up for sale. They will be able to examine each seller’s situation in relation to the proposed transfer.

Sale after entering a care establishment

The administration provides an exemption for the sale of the former main residence of certain people living in a residential care establishment for older people or disabled adults. This possibility depends in particular on income, occupation of the dwelling after moving into the establishment and the time taken to sell it.

For a sale in 2026, 2024 income must not exceed €30,024 for the first family quotient share, increased by €7,015 for the first additional half-share and by €5,522 for each of the following half-shares. The amounts differ in the overseas départements for people residing in a care home for older people.

The former main residence must be sold within 2 years of moving into the establishment. It must not have been occupied, whether rented out or lent, except by the spouse. The seller must also not be subject to the real property wealth tax for the second-to-last year preceding the sale.

This situation therefore calls for particular verification: it is not enough for the property to have been the main residence before entering the institution. The conditions relating to resources, occupancy, the sale date and wealth tax on real estate must also be examined.

Tax calculations and formalities

To explain the concept of a capital gain, the authorities give an example: a home bought for €100,000 and resold for €120,000 produces a capital gain of €20,000. If the home qualifies for the main-residence exemption, this capital gain is fully exempt.

When the capital gain is taxable, its tax calculation is not necessarily limited to the difference between the two prices. The sale price used may, in particular, be reduced, on production of supporting documents, by costs paid on the sale, such as those relating to mandatory surveys. It may also be increased by sums paid for the benefit of the seller.

For a purchased property, the acquisition price is the amount stated in the acquisition deed. It may be increased by certain fees and expenses under the applicable rules. For property received by gift or inheritance, the authorities use the value applied to calculate gift or inheritance tax.

When the capital gain is taxable, the notary handling the sale deals with the tax administration. They calculate the taxable capital gain and the tax payable, prepare the return and make the payment to the relevant land registration service. The seller must then state in their tax return the amount of the capital gain declared by the notary. When the sale of the main residence is fully exempt, no capital gains return is filed: the notary states the basis for the exemption in the deed of sale.

The Directorate General of Public Finances recalls the applicable principles on its page devoted to the sale of a property.

Frequently asked questions