Retirees: A tax advantageous provision for selling homes

The provision, stipulated in the General Tax Code, allows for exemption from real estate capital gains tax when selling a former primary residence, even if it was no longer the primary residence at the time of the sale. This measure applies particularly to individuals who have left their home to move into an EHPAD.

To benefit from this exemption in 2026, the household tax reference income (RFR) of the tax household in 2024 must not exceed 29,815 euros for the first portion of the family quotient (with specific increases for additional half-portions). If the RFR is less than 12,679 euros for the first portion, a longer period than two years is granted for the sale, even if the property was occupied or rented in the meantime.

It is however crucial that the former primary residence remained unoccupied after the move to the EHPAD and that it is sold within a period of two years following entry into the EHPAD, unless the RFR is below the threshold mentioned above. The absence of rental of the property is also an essential condition.

Outside these specific cases, real estate capital gains are generally subject to income tax of 19% and social security contributions of 17.2%, with reductions linked to the length of ownership.