An owner who makes a gain from the sale of real estate is subject to social security contributions of 17.20% and income tax of 19%, i.e. an overall rate of 36.2 % (and even more for capital gains above 50,000 euros). But if the sale concerns his main residence, he escapes it. An elderly person who has moved to a retirement home can benefit from this tax advantage under several conditions (BOI-RFPI-PVI-10-40-20).
First, the sale must take place within two years following entry into the establishment. Then, the seller must not be subject to real estate wealth tax and, for a sale made in 2024, his reference tax income for 2022 must be less than 26,149 euros for a single person (37,068 euros for a couple ). Finally, the old accommodation must have remained empty of occupation. It must not have been rented or lent during the absence of its owner. The only tolerance: occupation by a member of the tax household or by the partner.
A transfer within two years
These conditions often allow you to be exempt from capital gains tax. However, it is advisable not to delay putting the home up for sale, particularly if the operation requires the judge’s authorization, in order to ensure a transfer within two years.
If the decision is made to rent out the property, make your calculations carefully, particularly in the case where the assumed sale price is much higher than the acquisition price. You would lose the benefit of the exemption. On the other hand, if your parent has been an owner for more than thirty years, don’t worry, the total exemption is acquired due to the length of ownership.