Selling from abroad, do I need an accredited tax representative?
A seller domiciled outside the European Union, Iceland and Norway must appoint an accredited tax representative to sell property in France once the price exceeds 150,000 €, assessed per seller, a married couple counting as one. A seller domiciled in the European Union, Iceland or Norway is exempt, as is any sale of a property fully exempt through its holding period. The representative, who can be neither the notaire nor a lawyer, files the return, pays the withholding and remains jointly liable until the end of the reassessment period.
Who is exempt, and why
Paragraph IV of article 244 bis A of the tax code requires the non-resident seller to appoint an accredited representative, in charge of filing the return and paying the withholding. The BOFiP writes that the obligation does not apply when the seller is domiciled, established or incorporated in a European Union member state or in a European Economic Area state bound to France by an administrative assistance agreement and a recovery assistance agreement, namely Iceland and Norway. Liechtenstein, not bound by a recovery agreement, gives no right to the exemption.
Two exemptions apply as of right, written at the same place. The exemption applies without any formality to sales whose price is equal to or below 150,000 €, the threshold being assessed per seller, a married couple being treated as a single seller. And the sale of a property fully exempt through its holding period is exempt whatever the price. The threshold is read on the price stated in the deed, without deducting the agency commission.
Who can be the representative, and who cannot
A seller outside the European Union and the EEA can only be represented by three categories cited by the BOFiP, the buyer of the property if fiscally domiciled in France, banks and credit institutions operating in France, and any person accredited, on a one-off or permanent basis, by the tax administration for that purpose. The text adds that a notaire or a lawyer, in particular, cannot be a tax representative.
In practice, the seller turns to one of the companies holding a permanent accreditation, listed in the doctrine. A one-off accreditation is granted after a file is examined by the competent directorate for the location of the property. Without a return bearing an accredited representative, the service refuses to complete the formality, that is the publication of the deed.
What the representative commits to
The representative completes the formalities in place of the non-resident and must pay the withholding, the social levies and any additional assessments resulting from an audit. The non-resident remains the taxpayer, the taxpayer and the tax representative can be pursued indistinctly. The representative is liable on personal assets and is only discharged at the end of the reassessment period, normally 31 December of the third year following the sale.
That risk explains the fee, agreed with the seller and most often a proportion of the price, and the documents requested, title deed, invoices for works, proof of residence. The notaire says from the preliminary contract whether a representative is needed, and BRIVEO flags it in the sale file when the seller's address is outside the European Economic Area.
Frequently asked questions
I live in Switzerland, am I exempt from the tax representative?
No. The exemption covers residents of the European Union, Iceland and Norway. A Swiss resident needs one as soon as the price exceeds 150,000 €, even though the social levies are limited to 7.5 % through affiliation.
We sell as a married couple for 280,000 €, does the threshold apply to each of us?
No for a married couple, treated as a single seller, so a 280,000 € price exceeds the threshold. Two unmarried co-owners each assess the threshold on their own share.
Can the notaire be my tax representative?
No. The BOFiP expressly rules it out, as for a lawyer. The buyer domiciled in France, a bank operating in France or an accredited company can act.
Read next
- BOFiP, BOI-RFPI-PVINR-30-20, désignation d'un représentant accrédité (21 octobre 2020)
- impots.gouv.fr, « Bien ou vendeur hors de France »
- Légifrance, Code général des impôts, article 244 bis A, IV, et annexe II, article 171 quater
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