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Taxes on building lands sales (art. 1529 of french tax code)

Art. 1529 of French Tax CodeBOFIPList of municipalities having voted this tax

Local Tax (Art. 1529 of French Tax Code)

The Tax Law for the tax year 2006 has allowed the french « communes » to institute a tax on building lands sales.
Every seller, individuals or legal entities, french resident or non-resident, who is not liable to tax on profits, has to pay this tax.

This tax applies to the first costly sale (inheritance and gifts are not taken into account) done after the land has became a building land, and if the selling price is higher than 3 times of the purchase price.
Until september 2009, 28th, this tax is equal to 10% of 2/3 selling price.
After this date, this tax will be equal to 10% of the capital gain, i.e. the difference between the selling price and the purchase price updated with the latest price index.

This tax has to be paid with the capital gains tax on the same tax form (5th page), by the notary when he will register the deed.
The tax representative is also responsible for this tax.