Yes, the sale may be exempt. The key point is whether your property was still your primary residence at the time of departure, and whether the tax conditions for the transfer are met.
In Mauritius, the question is not automatic. The special exemption targets non-residents who meet specific conditions, and Mauritius is on the official list of states mentioned by the French administration for several schemes based on administrative assistance and recovery.
Things you need to know before selling
The capital gains tax regime for real estate depends primarily on the nature of the property at the time of departure. If the property was indeed your main residence in France when you transferred your tax domicile to Mauritius, a full exemption may apply, but only if the legal conditions are met. To link this sale to your relocation, consult our guide on the France-Mauritius tax treaty might be useful.
However, if the property has been rented out, loaned to a third party, or reclassified as a second home, the analysis changes. In this case, the sale generally follows the standard capital gains tax regime, with possible allowances depending on the length of ownership.
When a full exemption can apply
The tax authorities provide a full exemption for non-residents who sell the property that was their primary residence in France before their departure. The seller's new residence must then be located in a member state of the European Union or in a state that has concluded with France the administrative assistance and tax collection agreements required by law. Mauritius must therefore be checked in light of this condition.
This exemption is not automatic. The property must have remained at the seller's disposal between the seller's departure and the sale, without being made available free of charge or for payment to a third party, and the sale must take place no later than December 31 of the year following the transfer of tax residence outside of France. If these conditions are met, the sale may be exempt from capital gains tax. The deed of sale must then state the basis for this exemption.
If your departure is recent, our article on French income tax return for the year of departure to Mauritius This point is well completed, as the sale of a property and the first year of non-residence are often dealt with together.
Practical information at a glance
| Situation | Tax treatment | Point of vigilance |
|---|---|---|
| Former main residence sold after moving to Mauritius | Exemption is possible if the property was the primary residence initially, if it remained unoccupied and if the sale takes place within the correct timeframe. Official information sheet on capital gains taxes for non-residents. | The basis for the exemption must appear in the document. |
| Second home or rented accommodation | Capital gains are in principle taxable, with allowances linked to the holding period. Public service information on calculating capital gains on real estate. | Check if another exemption applies, particularly depending on the length of ownership.impots.gouv.fr) |
| Exemption capped at €150,000 | It targets non-residents who are nationals of the European Union or the European Economic Area and who meet specific conditions, which in principle makes it unsuitable for a departure to Mauritius. | Do not confuse this scheme with the exemption for the former main residence. |
How is the capital gain calculated if the sale remains taxable?
The calculation follows the standard logic for capital gains on real estate. It starts with the sale price, then subtracts the purchase price plus, where applicable, eligible expenses and improvements. Finally, the capital gain is reduced by allowances based on the holding period.
- The purchase price may be increased by the purchase costs for their actual justified amount, or by a fixed amount of 7.5 % of the purchase price.
- Expenses for construction, reconstruction, expansion or improvement work can be taken into account for their actual amount, or at a flat rate of 15 % if the property has been held for more than five years.
- If the property was received by gift or inheritance, the value used for gift or inheritance tax is retained.
- The allowance for length of ownership eventually eliminates income tax after 22 years and social security contributions after 30 years.
On the day of the sale, if the capital gain is taxable, the tax is generally paid through the notary to the relevant land registry office. This avoids having to manage the tax return declaration alone at the time of signing.impots.gouv.fr)
Steps to anticipate on the French side
If the sale is taxable, a non-resident must generally appoint a tax representative, except in cases of exemption. The tax authorities indicate, in particular, that an exemption applies when the seller is established in the European Union or in a state recognized by the relevant legislation, when the sale price is less than or equal to €150,000, or when the sale already benefits from an exemption related to the holding period.
In practice, this means that a move to Mauritius warrants careful planning before signing, especially if the capital gain is not fully exempt. To maintain a comprehensive overview of the implications of the move, you can also consult our comparison of taxation in Mauritius vs. France.
A notarized power of attorney can simplify the signing process.
If you are already in Mauritius when the sale is finalized, the notary can draw up a remote power of attorney when the parties cannot travel to their office. This is often the simplest solution for signing without returning to France, while still allowing the notary to secure the deed. Remote notarized power of attorney explained by Service-Public.
This power of attorney does not replace tax analysis, but it prevents a simple logistical issue from blocking the sale. If you are selling a property that is already subject to tax, the correct procedure is to confirm the tax status and then schedule the signing with the notary.
FAQ about selling property in France after moving to Mauritius
Selling your main residence in France when you are a non-resident: what exemptions apply to capital gains?
The most favorable rule is the total exemption of the former main residence, but this is not automatic. The property must have been your main residence at the time of departure, it must not have been made available to a third party between your departure and the sale, and the sale must take place within the prescribed timeframe. In addition, there is an exemption capped at €150,000, but this applies only to non-residents of the European Union or the European Economic Area, making it generally unsuitable for Mauritius.
How is capital gains tax calculated for a non-resident who sells a property in France after leaving the country?
The calculation remains similar to that for a resident. It starts with the sale price, subtracts the purchase price, adds any eligible purchase costs and renovations, and then applies the allowances for the holding period. Purchase costs can be deducted based on actual expenses or, in some cases, at a flat rate of 7.5% of the property's value (%), and renovations can be deducted based on actual expenses or at a flat rate of 15% of the property's value (%) if the property has been held for more than five years.
Do the main residence exemptions apply if I have transferred my tax residence outside of France and live in Mauritius?
Yes, this is possible, but only if all the legal conditions are met. The legislation applies to non-residents whose new residence is located in the European Union or in a country that has signed the required administrative assistance and recovery agreements with France. Mauritius is on the official list of countries mentioned by the tax authorities for this type of cooperation, which means that exemption may be possible if the property was indeed your primary residence, if it remained vacant, and if the sale takes place within the required timeframe.
Is the sale of a second home in France by a non-resident eligible for capital gains tax exemption?
In principle, no. A second home is subject to the standard capital gains tax regime, unless otherwise specified. The €150,000 exemption does not apply to moves to Mauritius, as it is reserved for certain non-residents of the European Union or the European Economic Area. However, if the property has been held for a sufficient period, allowances for length of ownership may ultimately eliminate the tax liability.
What conditions must be met to benefit from capital gains exemption when selling real estate in France as a non-resident?
First, you need to check whether you qualify for the exemption related to your former primary residence, or another provision such as the length of ownership. For the exemption based on your former primary residence, the property must have been your main residence before your departure, your new residence must be in a country recognized by the legislation, the property must not have been rented out or made available to a third party, and the sale must take place within the specified timeframe. If the sale remains taxable, a notary and, depending on the circumstances, a tax representative will be involved.
And now ?
If your move to Mauritius involves selling property in France, the best approach is to first secure the tax arrangements, then finalize the signing at the notary's office. To continue reading, start with EXPAT MAURITIUS, then reread the guide to the France-Mauritius tax treaty And the guide on declaring the year of departure to maintain a coherent view of your situation.
