France Taxes

House Sale

Treaty Article 6

• https://www.irs.gov/pub/irs-trty/france.pdf
  • Also: Documents/paperwork/taxes/us_france/us_france_tax_treaty.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
      (b) where France is the Contracting State,
        (i) real property referred to in Article 6 (Real Property) that is situated in
            France; and
        (ii) shares or similar rights in a company the assets of which consist at
            least 50 percent of real property situated in France or derive at least 50 percent of
            their value, directly or indirectly, from real property situated in France;
        (iii) an interest in a partnership, a "société de personnes", a "groupement
            d'intérêt économique” (economic interest group), or a "groupement européen
            d'intérêt économique” (European economic interest group) (other than a
            partnership, a "société de personnes", a "groupement d'intérêt économique"
            (economic interest group), or a "groupement européen d'intérêt économique” that
            is taxed as a company under French domestic law), an estate, or a trust, to the
            extent attributable to real property situated in France.

fr

• https://www.impots.gouv.fr/internationalenindividual/taxation-foreign-source-income

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).