VAT on property

Property Value Added Tax on property (VAT on property) is a tax levied by the French State, when the sale concerns a new property whether it is housing or building land.

VAT on property and acquisition of housing

We must distinguish between new buildings old buildings:

1. Old housings

Sales of buildings completed for more than 5 years are exempt from VAT

2. New housings

Sales of buildings completed within the last 5 years are subject to VAT at 20%)

VAT on property and acquisition of building land

To determine the tax system, we must distinguish two cases:

1. Transfers between individuals

Only registration fees are due (5.09%, 5.80% worn in most departments), no VAT.

2. The land sold by a professional

Land sales by a VAT registered business are subject to VAT at 20%, the buyer is an individual or not. VAT is normally paid by the seller.

If he had bought the land to a non-taxable person for VAT, the VAT will apply to margin and the buyer must pay 5.09% of registration fees currently charged at 5.80% in most departments.

If the trader had purchased the land from a taxable person for VAT, the VAT will apply to the whole sale price. In return, the buyer will benefit from registration fees reduced to 0.715%.

Frequently asked questions

Tax system / real estate management