Extension of the favourable regime applicable to capital gains on the disposal of professional premises to be turned into housings

In the framework of the fight against the housing crisis, article 210 F of the French tax code provided for a favourable tax regime under which the net capital gain deriving from the disposal, between 1 January 2012 and 31 December 2017, of offices and business premises is taxed at a reduced rate of 19%, subject to the commitment by the purchaser to turn the premises into housings within 3 years.

Article 18 of the Finance law for 2017 has eased the conditions of this favourable regime as from 1 January 2017 by (i) extending its scope to industrial premises and (ii) lengthening up to 4 years the period during which the purchased premises must be turned into housings.

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Sarvi Keyhani

Sarvi Keyhani, Partner, specializes in real estate tax. She advises international investors on major real estate operations. She particularly advises a large number of international real estate funds on the […]