On 1 January 2021, the United Kingdom formally left the European Union and the European Economic Area (EEA). For British residents who own property in France, this shift is far from symbolic: it significantly alters the taxation of real estate capital gains and now requires the appointment of an accredited tax representative. This article takes stock, five years on.
Before Brexit: EEA-protected status
Until 2020, UK residents benefited from EEA resident status under French tax law, with two key advantages: no obligation to appoint an accredited tax representative in most cases, and a reduced solidarity levy of 7.5% instead of full social charges at 17.2%. Selling a French property was fiscally comparable to selling as a resident of another EU member state.
After Brexit: the third-country regime
Since 2021, UK residents are treated the same as residents of any other third country (USA, UAE, Canada, etc.). Three major consequences follow.
1. Accredited tax representative: mandatory
When the sale price exceeds €150,000 or the property has been held for fewer than thirty years, appointing an accredited tax representative approved by the French tax authority is compulsory. Without this appointment, the notary cannot finalise the transfer.
2. Full social charges at 17.2%
The reduced solidarity levy of 7.5% — previously available to EEA/Switzerland residents — no longer applies. UK residents now face the full rate of 17.2%, representing an additional cost of 9.7 percentage points on their taxable capital gain.
3. Potential progressive surcharge
Like all non-residents, UK sellers may be liable for the progressive surcharge on capital gains exceeding €50,000, which can add up to 6% on top of the standard 19% income tax rate.
The concrete cost of Brexit for property sellers
On a taxable capital gain of €100,000, the difference between EEA status (pre-Brexit) and third-country status (post-Brexit) amounts to approximately €9,700 in additional tax. On €200,000, the gap approaches €20,000. For high-value Parisian or coastal properties, the extra bill can exceed €50,000.
Added to this is the mandatory cost of accredited tax representation (0.4% to 1% of the sale price), which did not apply to most EEA profiles before Brexit.
The France-UK tax treaty still fully applies
Brexit did not alter the tax convention signed on 19 June 2008 between France and the United Kingdom. France retains primary taxation rights on capital gains from French-situated property, and the UK grants a foreign tax credit against British Capital Gains Tax (CGT) to prevent economic double taxation.
UK CGT on residential property (since 2024) is levied at 18% or 24% depending on income band, with a very limited annual exempt amount since 2024 (£3,000). The French tax credit generally absorbs all UK CGT due.
Case study: house in the Dordogne sold from London
A London resident sells in 2026 a house in the Dordogne, purchased for €240,000 in 2008 and resold for €360,000.
- Gross gain: €360,000 − (€240,000 + €18,000 + €36,000) = €66,000.
- Held 18 years; income tax allowance 13 x 6% = 78%. Taxable gain (IT): €14,520 → IT at 19% = €2,759.
- Social charges allowance 13 x 1.65% = 21.45%. Taxable gain (SC): €51,843 → SC at 17.2% = €8,917.
- Total French tax: €11,676. Pre-Brexit equivalent: ~€6,600. Brexit surcharge: ~€5,000.
- UK side: CGT at 24% on the gain calculated under UK rules, with foreign tax credit absorbing the French tax paid.
Practical strategy for UK residents in 2026
- Start the process of appointing an accredited tax representative as soon as the sale agreement is signed, to avoid any delay at the final notarial deed.
- Shop around for representation fees: a direct comparison can save 20 to 40%, which is even more valuable in a heavier tax environment.
- Maximise all available deductions: 15% flat-rate works allowance, actual costs if higher, first-sale exemption if eligible.
- Coordinate with your HMRC tax adviser to align the French and UK declarations.
FAQ – Selling French property after Brexit
Would a potential return of the UK to the EEA change things?
Yes, in theory: a return to the EEA would reinstate the 7.5% solidarity levy and lift the accredited tax representative requirement in most cases. No return is being considered in the near term.
Is there a transitional period for properties purchased before Brexit?
No. The applicable regime is the one in force at the date of the sale. No grandfather clause was provided for.
Is a pre-Brexit sale agreement affected?
A sale agreement signed before 2021 but completed afterwards is subject to the tax regime in force at the date of the final deed — i.e., the third-country regime.