If the preliminary contract was signed between 1st January 2018 and 31st December 2020
Since 1st January 2018, an exceptional allowance applies to capital gains earned from the sale of building land or certain built properties located in zones where the housing market is very tight (zones “tendues” of type A and A bis)
Cumulative conditions:
• valid for land or properties located in municipalities classified, by decree, in geographical areas where there is a particularly significant imbalance between housing supply and demand. List of municipalities concerned
• sales preceded by a preliminary contract dated and registered between 1st January 2018 and 31st December 2020,
• sales signed no later than 31st December of the second year following the year in which the preliminary contract was signed and registered.
• condition of density of supply of housing, characterised by a commitment made by the Purchaser in the deed of sale :
- In the case of land: to build, within 4 years of the acquisition, new multi-family housing of a size that is at least equal to 75% of the maximum size authorised by the PLU or urban planning documents,
- In the case of a built property, the purchaser must commit to demolishing the existing buildings and to build, within 4 years, new multi-family housing that meets the above conditions
Allowance: 70 %.
The allowance goes up to 85% when the purchaser undertakes to build a majority of social or intermediate housing (as defined in Article L. 302-16 and in 3° and 5° of Article L. 351-2 of the French Building and Housing Code), the living area of which represents at least 50% of the total area of the buildings mentioned on the planning permit for the complex.
The allowance does not apply to direct or indirect sales or transfers within a family group.
=> fine of 10% of the sales price in case of non-compliance with the commitments.
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Preliminary contracts signed on or after 1st January 2021
Article 150 VE provides for a 70% allowance on capital gains tax under certain conditions:
- Que la cession porte sur,
- The sale or transfer must be of:
• built property, or interests relating to built property,
• and part or all of the surface area of these properties must be located within the limits of major urban planning operations (GOU) or within the limits of territorial revitalisation operations (ORT).
- provided:
• that the sale is preceded by a unilateral or bilateral promise to sell, signed and registered between 1st January 2021 and 31st December 2023;
• that the sale closes no later than 31st December of the second year following the year in which the unilateral or bilateral promise of sale was signed and registered,
- that the purchaser undertakes in the deed:
• to demolish the existing building(s),
• to build and complete one or more multi-family homes of a size that is at least equal to 75% of the maximum authorised size allowed by the PLU,
• all within 4 years from the date of acquisition.
The allowance goes up to 85% if, in addition:
- the purchaser undertakes to build and complete social or intermediate housing where at least 50% of the total area of the constructions listed in the permit is habitable surface area.
Limitations :
- the sale must not be directly or indirectly for the benefit of the seller’s spouse, partner in a civil partnership, concubine, ascendant or descendant,
- the purchaser can be fined 10% of the selling price if these conditions are not respected.
- does not apply to non-residents
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> if you are eligible : tick the 70% or 85% box
> if you are not eligible : untick the 70% or 85% box
