New Amendment in France's 2026 Budget Could End Tax Exemption on Primary Residence Capital Gains

Traditionally, the sale of a primary residence in France has been exempt from capital gains tax, providing a significant fiscal advantage to homeowners. However, a recent amendment adopted by the National Assembly as part of the 2026 budget could alter this long-standing exemption. This proposed change would impose taxes on the capital gains realized from selling a primary residence, potentially impacting many French property owners. The amendment was included in a series of budgetary revisions embraced by the National Assembly's Finance Committee, reflecting a notably creative and broad approach to fiscal policy for 2026. These changes come alongside other new taxes affecting various sectors such as vaping products and parcel deliveries. The government is preparing for a lively examination of the budget, with expectations that the parliamentary session will resemble a "fiscal fair" due to the multitude of amendments submitted. As of October 22, 2025, these developments signal a significant shift in France’s property taxation landscape, although full details and implementation measures remain to be clarified.