The government of France issued a circular on 9 August 2013 on reductions of capital gains for individual income tax and social contributions purposes.
Capital gains derived from the disposal of immovable property other than land benefit from the following reductions:
– 6% for each year of ownership beyond the 5th until the 21st; and
– 4% for the 22nd year of ownership.
A total exemption from individual income tax applies after 22 years of detention, instead of 30 years under the current regime.
Capital gains derived from the disposal of immovable property other than land benefit from the following reductions:
– 1.65% for each year of ownership beyond the 5th until the 21st;
– 1.60% for the 22nd year of ownership; and
– 9% beyond the 22nd year of ownership.
A total exemption from social contributions applies after 30 years of detention.
The same reductions apply to gains on immovable property rights, i.e., participations in real estate partnerships whose assets consist for more than 50% of immovable property.
In addition, with effect from 1 September 2013 until 31 August 2014, a special additional reduction of 25% applies on the same gains for individual income tax and social contributions purposes.