Is the sale of a let property always taxable?

Not systematically. The tax disappears in particular after 22 years of ownership (income tax) or 30 years (social levies), for a price of €15,000 or less, or as part of a first sale intended to finance the purchase of your main residence.

Who calculates and pays the capital-gains tax?

The notaire works out the calculation, deducts the tax from the sale price and remits it to the tax authorities. You do not have to advance it, but the capital gain must be reported on your income tax return the following year.

Do works increase the capital gain?

On the contrary: improvement works raise the purchase price and therefore reduce the taxable gain, at the actual amount on invoices or via the flat 15% after five years of ownership. Expenses already deducted from your revenus fonciers (property income) cannot, however, be counted twice.

A landlord’s capital gain on property: calculation, allowances and exemptions

Updated on August 20, 2026 · 7 min read

When a landlord sells a home that was being let, the gain is subject to the tax on plus-value immobilière (capital gain on property) — unlike the sale of a main residence, which is exempt. The amount depends above all on how long the property has been held. Here is how to estimate it and the cases where the tax falls to zero.

How the capital gain is calculated

The taxable capital gain is the difference between the sale price and the purchase price, each of which can be adjusted.

The purchase price is increased by acquisition costs (transfer duties, notaire’s fees) — either at the actual amount or by a flat 7.5% — and by improvement works, at the actual amount on supporting documents or by a flat 15% if the property has been held for more than five years. The sale price, in turn, can be reduced by certain costs (diagnostics, mortgage release).

The tax rate

The net capital gain is taxed at 19% under impôt sur le revenu (personal income tax), plus 17.2% of prélèvements sociaux (social levies), i.e. 36.2% before allowances.

An additional surtax applies to the portion of taxable gain above €50,000: from 2% to 6% depending on the amount. The notaire calculates the tax and deducts it directly from the price at the point of sale.

Allowances for length of ownership

No allowance applies before six years of ownership. After that, the longer you keep the property, the more the allowance reduces the taxable gain — and the pace differs between income tax and social levies:

impôt sur le revenu (income tax): 6% per year from the 6th to the 21st year, then 4% in the 22nd year, i.e. full exemption after 22 years;
prélèvements sociaux (social levies): 1.65% per year from the 6th to the 21st year, 1.60% in the 22nd year, then 9% per year from the 23rd to the 30th year, i.e. full exemption after 30 years.

The main exemption cases

Several situations wipe out the tax, sometimes even before the duration thresholds:

holding the property for more than 22 years (income tax) or 30 years (social levies);
the first sale of a home other than the main residence, where the seller has not owned their main residence during the previous four years and reinvests the price to buy one within twenty-four months;
a sale price of €15,000 or less;
a sale to a social-housing body, subject to conditions.

Furnished letting and SCI: different rules

For furnished letting (LMNP, loueur en meublé non professionnel — non-professional furnished landlord), the sale falls under the private capital-gains regime, as with unfurnished letting — but since 2025, the depreciation deducted during the letting period is added back into the calculation, which increases the taxable gain.

An SCI (société civile immobilière, non-trading property company) under impôt sur le revenu follows the same regime as individuals. A SCI under impôt sur les sociétés (corporate income tax), however, falls under the professional capital-gains regime, with no allowance for length of ownership and with depreciation added back: a regime that is often far heavier on resale.

Frequently asked questions

Is the sale of a let property always taxable?: Not systematically. The tax disappears in particular after 22 years of ownership (income tax) or 30 years (social levies), for a price of €15,000 or less, or as part of a first sale intended to finance the purchase of your main residence.
Who calculates and pays the capital-gains tax?: The notaire works out the calculation, deducts the tax from the sale price and remits it to the tax authorities. You do not have to advance it, but the capital gain must be reported on your income tax return the following year.
Do works increase the capital gain?: On the contrary: improvement works raise the purchase price and therefore reduce the taxable gain, at the actual amount on invoices or via the flat 15% after five years of ownership. Expenses already deducted from your revenus fonciers (property income) cannot, however, be counted twice.