The starting point for counting the years of ownership for real estate capital gains does not always coincide with the date on the authentic purchase deed. This confusion generates frequent calculation errors, even among sellers accompanied by a professional. Understanding the exact mechanics of the count allows for anticipating the amount of tax or, in some cases, delaying a sale by a few weeks to cross a threshold for exemption.
Starting date for the count: cases that trap the capital gains calculation
The general principle retained by the tax administration is simple: the duration of ownership runs from the date of the authentic acquisition deed to the date of the authentic transfer deed. Not the promise of sale, not the compromise. The notarized deed signed before the notary.
Where the calculation becomes complicated is for properties received by donation or inheritance. In these cases, the starting point is the date of the donation deed or the date of death, and not the date on which the donor himself acquired the property. An heir who sells three years after the death only benefits from three years of ownership, even if the deceased owned the property for twenty-five years.
Another recurring trap: properties acquired in VEFA (sale in future state of completion). The date retained is that of the authentic acquisition deed, usually signed well before delivery. We observe that some sellers confuse delivery and acquisition, which skews their estimate by several years.
Professionals who assist with transactions in real estate in Lyon with Detectis Immo systematically check these dates before any tax simulation, which avoids surprises at the time of the final signing.
Exemption for duration of ownership: the double scale of 22 years and 30 years
The 2026 finance law confirmed the maintenance of the double scale of exemption provided for in Article 150 VC of the CGI. The reform mentioned in the press aimed at standardizing the duration to 17 years was not adopted. The current regime remains as follows.
For income tax (flat rate of 19%), the exemption applies in tiers starting from the sixth year of ownership. The total exemption from income tax occurs after 22 full years of ownership.
For social contributions (17.2%), the pace of exemption is slower. The total exemption from social contributions occurs only after 30 full years of ownership.
In practical terms, a property held between 22 and 30 years remains subject to social contributions on the portion of the capital gain not yet offset by the exemption. We recommend not to consider a property “exempt” after 22 years without checking the social contributions component.
Exemption grid by bracket
The year-by-year calculation relies on different rates depending on the tax concerned:
- From the 6th to the 21st full year: 6% exemption per year for income tax, 1.65% per year for social contributions.
- The 22nd full year: 4% for income tax (which then reaches 100%), 1.60% for social contributions.
- From the 23rd to the 30th full year: income tax is already exempt, but social contributions continue with an exemption of 9% per year until total exemption.
This double scale requires performing two parallel calculations to obtain the total amount due. Omitting one of the two leads to underestimating or overestimating the taxation.
Reintegration of LMNP amortizations: the rule of February 2025
Since transfers occurring from February 2025, Article 150 VB II of the CGI requires deducting all amortizations made during the rental period from the acquisition price for the calculation of the capital gain. This rule applies to non-professional furnished rental (LMNP) and private landlords who have benefited from accounting amortizations.
The impact on the calculation of years of ownership is indirect but significant. Amortizations do not change the duration of ownership itself, but they increase the gross capital gain by decreasing the acquisition price retained. A property held for 15 years with significant accumulated amortizations can thus generate a taxable capital gain significantly higher than what the seller anticipated.
The reintegration concerns all amortizations, including those made before the reform came into effect. This retroactive mechanism modifies the arbitration between selling quickly or waiting for an additional exemption threshold.
Exceptional exemption in tense areas: extension until the end of 2027
The 2026 finance law has extended until December 31, 2027, the exceptional exemption of 60%, 75%, or 85% provided for in Article 150 VE of the CGI. This scheme applies to transfers made in certain tense areas, subject to conditions related to the nature of the operation (construction, demolition-reconstruction).
This exceptional exemption rate accumulates with the exemption for duration of ownership. The order of calculation matters: the exemption for duration of ownership is first applied to the net capital gain, then the exceptional exemption is applied to the remainder. A property held for 10 years in an eligible area thus benefits from a double effect that can significantly reduce the final taxation.
We observe that this scheme remains underutilized because the eligibility conditions are strict: geographical location, the buyer’s commitment to build or rebuild within a defined period, and minimum project density.
Practical method for calculating years of ownership
To avoid any errors, the most reliable method remains to proceed in three steps:
- Identify the exact date on the authentic acquisition deed (or the deed of donation, or the date of death for an inheritance).
- Count the full years between this date and the planned date of signing the sale deed, not the date of the compromise.
- Apply separately the two exemption grids (income tax and social contributions) to the net capital gain after correction of the acquisition price.
A delay of a few weeks can shift to a higher exemption threshold. Before setting a signing date, checking if an anniversary of ownership is approaching remains the most profitable reflex in terms of real estate taxation.