The count of years of ownership for capital gains tax on real estate is based on a precise legal computation, not on a simple subtraction of calendar years. The acquisition date and the sale date define a duration where each completed year triggers a distinct exemption threshold depending on whether it concerns income tax or social contributions.
Computation by completed year: the anniversary date trap
The duration of ownership is calculated in full completed years, that is, from date to date. A property acquired on March 15, 2015, and sold on March 14, 2027, accounts for eleven years of ownership, not twelve. The transition to the next threshold occurs only the day after the acquisition anniversary date.
This rule has direct consequences on the amount of tax. Delaying the signing of an authentic deed by a few days to cross into an additional year can significantly alter the applicable exemption rate. We recommend systematically checking the exact date on the acquisition deed, not that of the preliminary agreement.
The starting point considered is that of the transfer of ownership: date of the authentic deed for a purchase, date of death for an inheritance, date of the donation deed for a gift. The sale date corresponds to the signing of the authentic sale deed. The entire method explained by Detectis Immo is based on this date-to-date computation, which avoids common errors related to reasoning in calendar years.
Exemptions for duration of ownership: two distinct scales
The tax regime applies two exemption scales that do not progress at the same rate. The first concerns income tax, the second social contributions. Confusing them skews the final calculation.
Income tax scale
No exemption applies during the first five years of ownership. From the sixth completed year onward, the exemption progresses in thresholds until reaching total exemption after twenty-two completed years of ownership.
Social contributions scale
The mechanism is identical for the first five years (no exemption). The subsequent thresholds are lower, and total exemption from social contributions only occurs after thirty completed years. Between the twenty-second and thirtieth year, the seller remains liable for social contributions on a portion of the capital gain, even if the income tax is zero.
This asymmetry is often underestimated. An owner selling their property in the twenty-third year may mistakenly believe they are completely exempt when they are still liable for social contributions.
Acquisition price and increase for renovations: what is included in the calculation base
Before applying the exemptions, the gross capital gain must be determined. It corresponds to the difference between the sale price (net of expenses borne by the seller) and the increased acquisition price.
The acquisition price can be increased by several elements:
- The actual acquisition costs (notary fees, registration fees) or, in the absence of receipts, a flat rate set in proportion to the purchase price.
- Renovation, reconstruction, expansion, or improvement expenses, provided they have not already been deducted from rental income. A proportional flat rate to the acquisition price applies if the property has been held for more than five years and the seller does not provide invoices.
- Road, network, and distribution costs for building land.
Incorrectly increasing the acquisition price artificially inflates the taxable capital gain. We regularly observe sellers who fail to include eligible renovation costs, either due to not keeping receipts or a lack of knowledge about the available flat rate.
LMNP reform and impact on capital gains calculation
The reform of the actual LMNP regime modifies the treatment of the acquisition price for furnished rental owners. Tax-deductible depreciation can now be subtracted from the acquisition price, which mechanically increases the gross capital gain before applying the exemptions for duration of ownership.
This rule applies to transfers made since the reform came into effect, including for properties rented out as furnished prior to that. However, the exemptions related to the duration of ownership remain unchanged: the income tax exemption after twenty-two years and the social contributions exemption after thirty years continue to apply.
For an LMNP who has depreciated their property over a long period, the calculation of years of ownership becomes even more crucial. The longer the duration of ownership, the more the exemptions offset the increase in the taxable base related to the reintegration of depreciation.
Second home and exemption cases related to ownership
The primary residence benefits from total capital gains exemption, regardless of the duration of ownership. For a second home, no automatic exemption exists outside the progressive exemption mechanism related to duration.
Two situations deserve attention:
- The sale of a second home whose proceeds are reinvested in the acquisition of a primary residence may qualify for an exemption, under strict conditions (first sale, reinvestment within a defined period).
- Sales where the sale price remains below a threshold set by the CGI also benefit from an exemption, regardless of the duration of ownership.
- Properties held for more than thirty years are exempt from all contributions, making the calculation of ownership duration irrelevant for tax purposes at this stage.
The precise counting of years of ownership determines the net amount received by the seller. Delaying a sale by a few weeks to cross a threshold of exemption remains one of the simplest optimization levers, provided one masters the date-to-date computation and does not reason in approximate calendar years.
