Sellers of building land benefit from a new advantage: a tax reduction of at least 60% on the capital gains generated by the real estate transaction. Explanations.
Owners who sell their building land located in zone A (the Paris region and large urban areas), in extended zones (A bis) and intermediate zones (B1), now have access to a new exceptional tax reduction on capital gains. The measure was included in the 2024 finance bill. The tax reduction on capital gains generated by the sale of real estate is set at 60%.
Special conditions to benefit from the tax reduction
However, not all owners will be affected. There are several eligibility conditions to benefit from this tax advantage on sale. First of all, the reduction is subject to a condition of densification of the existing building. The constructed assets must be within one or more collective buildings. For the seller to benefit from the tax advantage, the building must be built within a maximum period of 4 years from the date of acquisition, and its size must reach 75% or more of the maximum size authorized by the local plan. town planning (PLU) in force.
In the event of failure to comply with the commitment to build housing within four years, the buyer is fined an amount equal to 10% of the sale price, specified The particular.
In addition, owners must sign the promise of sale between January 1, 2024 and December 31, 2025 and carry out this sale no later than December 31 of the second year following that of signing the promise of sale, i.e. December 31 2027.
A reduction of up to 85%
The tax reduction rate set at 60% may even reach 75% if the buyer’s construction project targets complex or national development operations. This rate will also be raised to 85% if the housing built is affected by social housing, housing with a joint real estate lease, or is the subject of the Loc’Avantages system. On the other hand, the allowance is for capital gains and does not apply to transfers made for profit, falling under The particular:
- of a natural person who is the spouse of the seller, the partner to whom he is linked by a civil partnership, his common law partner or an ascendant or descendant of the transferor or one of these persons;
- of a legal entity of which the transferor, his spouse, the partner to whom he is linked by a civil partnership, his well-known cohabitant or an ascendant or descendant of one of these persons is a partner or becomes one on the occasion of this sale.
Real estate capital gains: definition, calculation, taxation and possible exemption