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Taxes on building lands sales (art. 1605 nonies of french tax code)

Art. 1605  nonies of French Tax CodeBOFIP

National Tax (Art. 1605 nonies of French Tax Code)

That tax applies automatically, regardless of the quality of the seller, to the first sale done as of 29 July 2010 of bare land or rights to bare land made buildable due to their ranking after the January 13, 2010 and when the selling price is less than 10 times the purchase price updated on the last price index excluding tobacco published by INSEE.
To calculate that tax, the taxable gross basis is equal to the selling price less the purchase price.
This base is reduced by a tenth per year after the date on which the land was made building beyond the 8th one.
The effect of this reduction is that the tax does not apply to sales of land made by taxpayers who have held for more than 18 years the land, the period of detention is appreciated after the date on which the buildable land was made.

The tax rate is :
  • 5% when the ratio between the sale price of the land and the purchase price updated is more than 10 and less than 30;
  • 10% for the capital gain remaining tax (that is to say, for the portion of the gain that exceeds 30 times the purchase price updated).

It is paid by the seller.