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TKenney, Ph.D.
TKenney, Ph.D., French Attorney (Avocat à la Cour)
Category: French Law
Satisfied Customers: 831
Experience:  Practicing law in France, 10+ years of experience on Paris Bar. Taught French Business Law in US
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My partner and I bought a derelict house in France in 1998

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My partner and I bought a derelict house in France in 1998 En tontine with joint 50/50 ownership. We are now seperating and I have decided to let her keep the house in France. Am I liable for any capital gain?
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Graham Newby
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Customer: replied 3 years ago.

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Graham Newby

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Hello, In French law when you sell a real estate property at a higher price than that paid for at the purchase price, you realize a "capital gain." The real estate capital gain is taxable income in France unless it is your principal residence.
If the property is your prinicipal residence, then you have no capital gains tax to pay. If you are giving the property to your partner and not making a profit, then you will have no capital gains taxes. In French law, capital gains taxes are only paid when one makes a profit.
Customer: replied 3 years ago.

Thank you for your reply. We bought the property for approx 30,000 euros. It is currently valued at approx 180,000 Euros and we have spent approx 80,000 euros rebuilding it. However I am giving the property to my ex partner for no money. Am I still not liable for any capital gains tax?

In French law, inheritance, gifts or shares of undivided property under a civil union (PACS) or marriage are exempt from the French capital gains tax. These are transactions legally called gratuitous transfers, which in essence does not produce gains.

You wrote you are giving the real estate property to your ex partner. This is in essence a gift after your union, and you are not making a profit, Therefore you will not have to pay the French capital gains tax. The French Notaire who will write up your transfer of title deeds (acte de vente) will have to show that this is a gift and not a sale. Your French document of transfer of title written up by the Notaire will have to determine that you gave your share of the property to your ex-partner as a gift.
I am glad I was able to answer your question. Please don’t forget to provide a positive rating so I can get credit for the service I provided to you. If the answer was particularly helpful a BONUS is always appreciated too! Best regards!
TKenney, Ph.D., French Attorney (Avocat à la Cour)
Category: French Law
Satisfied Customers: 831
Experience: Practicing law in France, 10+ years of experience on Paris Bar. Taught French Business Law in US
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