The capital gain on real estate is calculated based on the difference between the sale price and the purchase price, but the number of years of ownership radically changes the final tax. With the 2026 reform, the period for total income tax exemption decreases from 22 to 17 years, while social contributions increase to 18.6% compared to 17.2% in 2025. Accurately measuring the duration of ownership and its effects on each tax component allows for choosing the right time to sell.
Reductions for duration of ownership: comparative table 2025 and 2026
The reduction scale differs depending on whether we are talking about income tax (flat rate of 19%) or social contributions. The 2026 reform shortens the duration required for total exemption on the income tax side, but maintains a separate schedule for social contributions.
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| Duration of ownership | Income tax reduction (before 2026) | Income tax reduction (from 2026) | Social contributions reduction |
|---|---|---|---|
| Less than 6 years | 0% | 0% | 0% |
| From 6 to 10 years | 6% per year | Accelerated scale | 1.65% per year |
| From 10 to 17 years | 6% per year | Accelerated scale | 1.60% to 9% depending on the bracket |
| 17 full years | Not exempt | Total income tax exemption | Not exempt |
| 22 full years | Total income tax exemption | Total income tax exemption | Not exempt |
| 30 full years | Total exemption | Total exemption | Total exemption |
The shift from 22 to 17 years for income tax frees up five years of ownership. An owner who has held a property for 18 years and was hesitant to wait another four years can now sell without income tax. However, social contributions remain due until the thirtieth year, which maintains a significant residual taxation.
Among the methods proposed by Ventes Immo, the year-by-year simulation remains the most reliable approach to identify the exact threshold where the sale becomes fiscally acceptable.
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Starting point for calculating the duration of ownership: the pitfalls of dismemberment
The general rule sets the starting point at the acquisition date stated in the authentic deed. For a standard purchase, there are no difficulties. The calculation becomes complicated with properties received through donation or inheritance, and even more so with the dismemberment of property.
Donation-sharing and usufruct reserve
The BOFiP, updated after the finance law for 2025, clearly distinguishes the counting between usufructuary and bare owner. The bare owner counts their years from the initial donation, not from the moment they regain full ownership upon the death of the usufructuary.
This precision changes everything for a property dismembered over several decades. A child who received bare ownership 20 years ago and regains usufruct upon a parent’s death can immediately benefit from total income tax exemption, without waiting an additional 17 or 22 years.
Inheritance and retained date
For an inherited property, the starting point is the date of the opening of the succession (date of death), not the date of the sharing deed or the declaration of succession. The acquisition price retained is the value declared in the succession, which mechanically reduces the gross capital gain if the property was correctly valued at the time.
Flat-rate works of 15% after five years of ownership: actual conditions
For built properties held for more than five years, the seller can apply a flat rate of 15% of the acquisition price for works, without any invoices to produce. This flat rate increases the acquisition price and thus reduces the gross capital gain.
- The 15% flat rate is automatically granted for any built property held for more than five years, without justification
- It does not accumulate with works already deducted for rental income (a landlord who has deducted works from their rental income cannot count them a second time)
- The seller can choose to retain the actual amount of the works if they have invoices and if this amount exceeds the flat rate, provided that these works have not been deducted for tax purposes
In practice, the flat rate benefits owners who have not carried out major works or who have not kept their invoices. Conversely, for a heavily renovated property with invoices, the actual calculation may be more favorable.
LMNP and reintegration of depreciation: a different duration calculation
Since the 2025 reform, non-professional furnished rental owners must reinstate the depreciations deducted in the calculation of the capital gain upon resale. This change significantly increases the taxable amount, as the accumulated depreciations over the years reduce the acquisition price retained for the calculation.
For a property operated as LMNP for a long period, the accumulated depreciations can represent a substantial part of the initial purchase price. The duration of ownership thus plays a dual role: it allows for accumulating reductions for seniority, but it also increases the volume of reintegrated depreciations.
The arbitration consists of comparing the gain provided by the reductions for duration of ownership with the loss related to the reintegration. Selling an LMNP too early combines low reduction and high reintegration. Waiting for the total exemption threshold (17 years for income tax in 2026) neutralizes at least the income tax component, but social contributions remain calculated on the capital gain increased by the depreciations.
The duration of ownership remains the main tax lever to reduce the tax on capital gains from real estate. The shift to 17 years of income tax exemption in 2026 accelerates the optimal selling window for secondary residences and rental properties. For LMNP properties, the reintegration of depreciations requires precise simulation of the net effect, year by year, before setting a date for the sale.