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FIRPTA for French Sellers: Selling Your US Property

French sellers of US property navigate two tax systems. FIRPTA withholding at closing is the US side. The plus-value (French capital gains tax on real estate) is the French side. The US-France Double Taxation Treaty coordinates them. At the New York and Miami price tiers where French buyers operate, the Form 8288-B certificate recovers meaningful amounts at closing — and should be filed the day the property is listed.

FIRPTA at the French Buyer’s Price Tier

French buyers in New York and Miami operate at price tiers where FIRPTA withholding is significant: On an $800,000 Manhattan apartment with $250,000 gain: FIRPTA withholds $120,000 (15% of gross). Actual US capital gains tax at 15%: $37,500. 8288-B saves $82,500 at closing vs waiting for annual return. File the certificate as soon as the listing goes live. Full FIRPTA guide: FIRPTA complete guide.

French Plus-Value and the DTA

French tax residents who sell US property declare the gain as plus-value: (1) Plus-value rate: the French plus-value tax on real estate includes income tax (19%) and prelevement sociaux (social charges). For properties held more than 22 years, income tax relief applies progressively. (2) EUR/USD and the French calculation: the plus-value is calculated in EUR using the rate at purchase and sale dates. EUR/USD depreciation since purchase may create a larger EUR gain than the USD gain suggests. (3) US-France DTA credit: US capital gains tax paid is credited against the French plus-value. If the US rate exceeds the French rate, French tax after credit may be zero. (4) French tax return timing: the gain is declared on the French déclaration de revenus for the year in which the sale completed.

Guides: IFI Wealth Tax & US Property — FIRPTA Guide — Find an Agent

Frequently Asked Questions

What is FIRPTA for French sellers?

15% withheld from gross sale price at closing. Form 8288-B filed at listing reduces this to actual capital gains tax. At New York and Miami prices, the certificate saves tens of thousands at closing.

Does France also tax the gain when a French citizen sells US property?

Yes. Plus-value tax (income tax 19% + social charges) applies if the seller is a French tax resident. US tax paid is credited against French tax through the US-France DTA.

How does EUR/USD affect the French tax calculation?

The gain is converted to EUR at rates on purchase and sale dates. EUR/USD depreciation since purchase may produce a larger EUR gain than the USD calculation suggests. Work with a French expert-comptable for the specific calculation.