Unlike the main residence, the capital gain derived from the resale of the secondary residence or a rental investment is taxable. Unless you wait 22 years, a period after which the capital gain is exempt, or sell your property to… a social landlord. Since 2005, individuals who sell real estate to a buyer committing to building social housing have been exempt from tax on the capital gain on the sale.
This mechanism is win-win since it is advantageous from a tax standpoint for the seller and it allows “contain” sales prices, social landlords buying below market prices, underlines the socialist deputy Inaki Echaniz this Monday, November 3, during the examination of the draft budget for 2026 by the National Assembly in public session. Renewed eight timesthis system must end on December 31, 2025.
Secondary residences: deputies reduce the exemption period on capital gains by 5 years
A cost of 10 million euros for public finances
This is why the parliamentarian filed a amendment aiming to extend it by two years, until December 31, 2027. With almost 3 million French people waiting for social housing, “we must encourage real estate sales to produce social housing”defends Inaki Echaniz. A shared opinion “personally” by the general budget rapporteur to the Assembly, Philippe Juvin, for whom “if this regime has been renewed eight times, it is probably a good thing”.
The Minister of Public Accounts, Amélie de Montchalin, also supported Inaki Echaniz’s arguments: “We are going to experience a new moment in the 10 days since we have been examining the draft budget! Not only I am in favor of your amendment but I also raise the pledge.” In other words, the loss of tax revenue that this amendment generates for the State will not have to be compensated by revenue. “At 10 million euros, the cost of this amendment for public finances is modest, even though its objective is not”underlines Amélie de Montchalin. Despite opposition from the National Assembly’s finance committee, the amendment was adopted by the deputies. The finance bill must now be sent to the Senate, which is supposed to examine it from this Tuesday, November 4.
