France Taxes

House Sale

Treaty Article 6

• https://www.irs.gov/pub/irs-trty/france.pdf
• Note: "Real Property" is a superset of real estate.

ARTICLE 6
Income From Real Property
1. Income from real property (including income from agriculture or forestry) situated in a
Contracting State may be taxed in that State.

Article 13

• https://www.irs.gov/pub/irs-trty/france.pdf

ARTICLE 13
Capital Gains
1. Gains from the alienation of real property situated in a Contracting State may be taxed in
that State.
2. For purposes of paragraph 1, the term "real property situated in a Contracting State"
means:
(a) where the United States is the Contracting State, real property referred to in
Article 6 (Real Property) that is situated in the United States, a United States real property
interest (as defined in section 897 of the Internal Revenue Code, as it say be amended
from time to time without changing the general principle thereof), and an interest in a
partnership, trust, or estate, to the extent attributable to real property situated in the
United States; and

fr

If the treaty stipulates that the income is tax-exempt in France, it will specify whether the income has be declared in France or not.

Declaring income that is tax-exempt under the treaty in France will not cause this income to be taxed. This income is nevertheless factored in to calculate the amount of income tax owed on French-source income (taux effectif method).