{"id":11086,"date":"2024-06-13T11:10:23","date_gmt":"2024-06-13T11:10:23","guid":{"rendered":"https:\/\/staging.consultants-immobilier.com\/?page_id=11086"},"modified":"2024-10-03T11:14:17","modified_gmt":"2024-10-03T11:14:17","slug":"plus-value-residence-secondaire","status":"publish","type":"page","link":"https:\/\/staging.consultants-immobilier.com\/en\/sellers-guides\/the-stages-of-the-sale\/real-estate-capital-gain\/plus-value-residence-secondaire\/","title":{"rendered":"Capital Gain on Secondary Residence: Everything You Need to Know"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row full_width=&#8221;stretch_row_content&#8221; content_placement=&#8221;top&#8221; css=&#8221;.vc_custom_1670852810251{background-position: center !important;background-repeat: no-repeat !important;background-size: cover !important;}&#8221; el_class=&#8221;back_div&#8221;][vc_column css=&#8221;.vc_custom_1657728499249{padding-right: 15px !important;padding-left: 15px !important;}&#8221;][vc_raw_html]JTNDZGl2JTIwY2xhc3MlM0QlMjJteV9iYWNrX2J1dHRvbiUyMiUzRSUwQSUwOSUwOSUwOSUwOSUwOSUwOSUzQ2ElMjBocmVmJTNEJTIyaHR0cHMlM0ElMkYlMkZ3d3cuY29uc3VsdGFudHMtaW1tb2JpbGllci5jb20lMkZlbiUyRnByb3BlcnR5LWd1aWRlcyUyRiUyMiUzRSUzQyUyMEJhY2slMjB0byUyMHByb3BlcnR5JTIwZ3VpZGVzJTNDJTJGYSUzRSUwQSUwOSUwOSUwOSUwOSUwOSUzQyUyRmRpdiUzRQ==[\/vc_raw_html][\/vc_column][\/vc_row][vc_row css=&#8221;.vc_custom_1718276484571{background-image: url(https:\/\/staging.consultants-immobilier.com\/wp-content\/uploads\/2024\/06\/plus-value-residence-secondaire.jpg?id=11087) !important;background-position: center !important;background-repeat: no-repeat !important;background-size: cover !important;}&#8221; el_class=&#8221;override_left&#8221;][vc_column css=&#8221;.vc_custom_1657728499249{padding-right: 15px !important;padding-left: 15px !important;}&#8221;][\/vc_column][\/vc_row][vc_row el_class=&#8221;override_pos&#8221;][vc_column][vc_row_inner css=&#8221;.vc_custom_1662026446228{background-color: #e4e4e4 !important;}&#8221;][vc_column_inner][vc_custom_heading text=&#8221;Capital Gain on Secondary Residence: Everything You Need to Know&#8221; font_container=&#8221;tag:h1|font_size:37|text_align:center|color:%23040e31&#8243; use_theme_fonts=&#8221;yes&#8221; css=&#8221;.vc_custom_1718276936864{padding-right: 20px !important;padding-bottom: 30px !important;padding-left: 20px !important;}&#8221; el_class=&#8221;relative_pos&#8221;][\/vc_column_inner][\/vc_row_inner][vc_row_inner equal_height=&#8221;yes&#8221; el_class=&#8221;firstblock guide-wrapper-row vc_row-o-equal-height vc_row-flex&#8221; css=&#8221;.vc_custom_1765897502487{background-color: #ffffff !important;}&#8221;][vc_column_inner width=&#8221;4\/5&#8243;][vc_column_text css=&#8221;&#8221; el_class=&#8221;resume_block&#8221;][\/vc_column_text][vc_column_text css=&#8221;&#8221; el_class=&#8221;content_block&#8221;]<span style=\"font-weight: 400;\">Selling a secondary residence can be financially advantageous, especially due to the <\/span><b>real estate capital gain<\/b><span style=\"font-weight: 400;\">, which is the difference between the purchase price and the selling price of the property. However, this capital gain is often taxable, requiring a deep understanding of the current tax regulations. How to precisely calculate this capital gain? What <\/span><b>deductions and exemptions<\/b><span style=\"font-weight: 400;\"> can apply? Here is what every owner needs to know to optimize their taxation when selling a secondary residence. <\/span><\/p>\n<h2><b>Principle of Real Estate Capital Gain <\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The real estate capital gain is <\/span><b>the difference between the selling price of a property and its initial purchase price<\/b><span style=\"font-weight: 400;\">. This value can be increased by renovation costs or improvements made to the property over the years. For a primary residence, this capital gain is often non-taxable, but for secondary residences, the rules differ. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">When it comes to a secondary residence, the capital gain becomes taxable, but certain specifics must be taken into account. The calculation of this capital gain is subject to <\/span><b>various deductions based on the duration of ownership<\/b><span style=\"font-weight: 400;\">, which can significantly influence the tax owed. The tax regime applied to the sale of a secondary residence is designed to encourage long-term ownership and minimize the fiscal impacts for those investing in real estate over a long period. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">To anticipate the fiscal implications of selling your secondary residence, it is recommended to proceed with a<\/span><a href=\"https:\/\/staging.consultants-immobilier.com\/estimer\/\"> <span style=\"font-weight: 400;\">real estate appraisal<\/span><\/a><span style=\"font-weight: 400;\">. This step not only allows you to prepare financially but also to strategically plan the timing of the sale to maximize profits. <\/span><\/p>\n<h2><b>Calculating Real Estate Capital Gain <\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Calculating the real estate capital gain for a <\/span><b>secondary residence<\/b><span style=\"font-weight: 400;\"> involves subtracting the purchase price of the property from the price at which it was sold. However, this gross calculation can be adjusted to reflect the actual expenses incurred by the seller, thus reducing the taxation on this capital gain. <\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Gross Capital Gain:<\/b><span style=\"font-weight: 400;\"> The first step is to deduct the purchase price of the property, including acquisition costs such as transfer duties and notary fees, from the selling price. <\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Increase in Acquisition Price:<\/b><span style=\"font-weight: 400;\"> The seller can increase the acquisition price with actual costs such as renovation or improvement works they financed, or opt for a flat-rate increase which is often 7.5% for properties held for less than five years and can go up to 15% for those held longer.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Calculating Taxable Capital Gain:<\/b><span style=\"font-weight: 400;\"> After adjusting the purchase price with these increases, this adjusted amount is subtracted from the selling price to obtain the taxable capital gain. This amount can then be reduced by deductions for the duration of ownership, which increase with the number of years the property has been held. <\/span><\/li>\n<\/ul>\n<h2><b>Applicable Tax Rates and Deductions<\/b><\/h2>\n<h3><b>Overall Tax Rate <\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The real estate capital gain on <\/span><b>secondary residences<\/b><span style=\"font-weight: 400;\"> is generally taxed at an overall rate of 36.2%. This rate includes 19% income tax and 17.2% social contributions. These rates are applied to the net capital gain, after considering deductions for the duration of ownership. <\/span><\/p>\n<h3><b>Deductions for Income Tax <\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>From 0 to 5 years of ownership:<\/b><span style=\"font-weight: 400;\"> No deduction is applied, meaning the entire capital gain is taxable.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>From 6 to 21 years of ownership:<\/b><span style=\"font-weight: 400;\"> The deduction increases gradually each year, starting at 6% for the sixth year and increasing by 6% each subsequent year, reaching 96% in the twenty-first year.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>22 years and over:<\/b><span style=\"font-weight: 400;\"> The capital gain is 100% exempt from income tax after 22 years of ownership.<\/span><\/li>\n<\/ul>\n<h2><b>Deductions for Social Contributions<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Up to 5 years:<\/b><span style=\"font-weight: 400;\"> No deduction is applied for social contributions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>From 6 to 21 years:<\/b><span style=\"font-weight: 400;\"> The deduction for social contributions starts at a lower rate, 1.65% for the sixth year, gradually increasing each subsequent year, reaching 26.40% in the twenty-first year.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>22 to 29 years:<\/b><span style=\"font-weight: 400;\"> The deduction continues to increase more significantly, rising to 28% for the twenty-second year and reaching 91% in the twenty-ninth year.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>30 years and over:<\/b><span style=\"font-weight: 400;\"> After 30 years of ownership, the capital gain is fully exempt from social contributions.<\/span><\/li>\n<\/ul>\n<h3><b>Cases of Total Exemption <\/b><\/h3>\n<p><span style=\"font-weight: 400;\">A <\/span><b>total exemption<\/b><span style=\"font-weight: 400;\"> from the capital gain is applied if: <\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The owner has not been a principal resident during the 4 years preceding the sale and reinvests the total sale amount into their principal residence within the following 4 years.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The sale price does not exceed 15,000 euros, regardless of the duration of ownership.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The seller is retired or disabled and their reference taxable income does not exceed the established threshold.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If you are considering selling and reinvesting in <\/span><b>real estate<\/b><span style=\"font-weight: 400;\">, feel free to browse our<\/span><a href=\"https:\/\/staging.consultants-immobilier.com\/en\/our-properties\/\"> <span style=\"font-weight: 400;\">Paris real estate listings<\/span><\/a><span style=\"font-weight: 400;\"> and contact one of our <\/span><a href=\"https:\/\/staging.consultants-immobilier.com\/en\/our-agencies\/\"><span style=\"font-weight: 400;\">agencies<\/span><\/a><span style=\"font-weight: 400;\">.<\/span>[\/vc_column_text][\/vc_column_inner][vc_column_inner width=&#8221;1\/5&#8243; el_id=&#8221;summary_column&#8221;][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Maximize the Capital Gain on Your Secondary Residence: Understand Taxes, Exemptions, and Best Practices for Selling at the Right Time<\/p>\n","protected":false},"author":6,"featured_media":11088,"parent":8554,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"single-guide.php","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-11086","page","type-page","status-publish","has-post-thumbnail","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.consultants-immobilier.com\/en\/wp-json\/wp\/v2\/pages\/11086","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/staging.consultants-immobilier.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/staging.consultants-immobilier.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/staging.consultants-immobilier.com\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.consultants-immobilier.com\/en\/wp-json\/wp\/v2\/comments?post=11086"}],"version-history":[{"count":2,"href":"https:\/\/staging.consultants-immobilier.com\/en\/wp-json\/wp\/v2\/pages\/11086\/revisions"}],"predecessor-version":[{"id":11091,"href":"https:\/\/staging.consultants-immobilier.com\/en\/wp-json\/wp\/v2\/pages\/11086\/revisions\/11091"}],"up":[{"embeddable":true,"href":"https:\/\/staging.consultants-immobilier.com\/en\/wp-json\/wp\/v2\/pages\/8554"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/staging.consultants-immobilier.com\/en\/wp-json\/wp\/v2\/media\/11088"}],"wp:attachment":[{"href":"https:\/\/staging.consultants-immobilier.com\/en\/wp-json\/wp\/v2\/media?parent=11086"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}