Rambling archer

Social charges, I have been told, are due on the sale of a house in France but I am having difficulty in figuring out exactly what that will mean ...
Is it based on the sale price, the capital gain (if any), the purchase value (ie price paid minus Notary, approved improvements, Agents fees if any) or what?
I understand that having owned the property for more than 22 years (will be 23 years at time of sale), there is no Capital Gains Tax to Pay but this bit about Social Charges seems to mean something is due - and is it something that has to be paid to the Notary for the settling up of tax due.

"Reductions for Social Charges - none for the 1st six years, then 1.65% for the next 16 years to year 21, giving a "reduction" of 26.4% and then 1.6% for year 22 which takes us to 28% reduction, and 9% for year 23 so now at 37% reduction" - reduction of what? So if some amount is reduced by 37%, does one pay 63% of whatever it is?

Also as non-resident in France (Resident in Portugal - EU) are there any other sums due or retentions?

Any tax boffins out there who can help, please?
Many thanks in advance
RA

Listen Very Carefully

It is based on the capital gain These two sites might be of use to you
https://www.notaires.fr/fr/immobilie...obili%C3%A8res

https://www.service-public.fr/partic.../F10864#N10150

Rambling archer

Oooof - thanks for that. So it looks like from the Notaires website - due to how long we have had the property at more than the limit of 22 years, there will be no Capital Gain tax to pay on the gain.

However, for the social charges we have not got to the exoneration stage, so benefit from a reduction of at least 28% of the gain ... ie if the Gain is 15,000 euros, we take off 28% from the 15,000 euros, and expect to pay tax at a set rate of 17.2% on the other 72% of the 15,000. So this amount is to be taken out of the Sale moneys by the Notary at the time of the transaction.
And being under the 50,000 limit of gain there is no Taxe Complementaire to pay - phew!

But then when I look at the Impots site of the Service Public, I see the seller is exonerated anyway from the Capital Gain tax if you are non-resident in France but resident in the EU.
BUT then even if you are exonerated you have to fill in a tax declaration for that year to declare the exoneration ! But, it would seem you only have to do the tax declaration if you have other taxable-in-France incomes to declare...

Its all IFs and BUTs! The bottom line being, having decided we will be exonerated from the Capital Gains tax on two criteria, do we still expect to pay the Prelevement Social on something that has been exonerated? That is not very clear on either site!

cyrian

As a non-EU resident you will also have to appoint a Representant fiscal to check the tax liability on the sale.