What is a real estate buy-and-sell operation?

Buy-and-sell involves purchasing a property, renovating it if necessary, then reselling it at a profit. This is the main activity of property dealers. For individuals, the capital gain is subject to tax unless the property is the primary residence.

How to calculate real estate capital gains?

The gross capital gain is the difference between the sale price and the purchase price plus costs (notary, works). The taxable capital gain benefits from progressive allowances: full income tax exemption after 22 years and social contributions after 30 years.

What taxation for buy-and-sell?

For individuals: flat tax of 36.2% (19% income tax + 17.2% social contributions) on net capital gain with duration-based allowances. For property dealers: taxation under the BIC regime with VAT on margin or real estate VAT.

What costs should be expected in a buy-and-sell operation?

Costs include: notary fees (7-8% for existing properties), renovation works, agency fees on resale (3-5%), loan interest, capital gains tax and possibly VAT for property dealers.

My Real EstateSimulator

Buy & Sell Simulator

Calculate the profitability of your property dealing operations

Real estate buy-and-sell (or property dealing) consists of buying, renovating and reselling properties for profit. This simulator helps you evaluate the profitability of your operations. — View detailed guide

Understanding real estate buy-and-sell

Real estate buy-and-sell in detail

Real estate buy-and-sell is a commercial activity that consists of acquiring real estate, renovating it if necessary, then reselling it at a profit. It is the main activity of property dealers.

Simple flip

Buy, light renovation, quick resale

Division

Buy a building, divide into units, resale

Change of use

Office → residential conversion

Key tax points

• VAT on margin: Regime applicable to property dealers on existing properties

• Real estate VAT: 20% on new or significantly renovated buildings

• Capital gain: Taxed under the BIC regime for professionals

• Transfer duties: Commitment to resell within 5 years = reduced rate

Warning: Property dealing is a commercial activity that requires an appropriate legal structure (SAS, SASU, SARL...) and registration with the RCS.

Continue your simulation with our other free calculators

Notary Fees

Estimate the acquisition costs of your property

Capital Gains Tax

Calculate the tax on your real estate capital gains

Renovation Budget

Estimate the cost of your renovation work

Bridge Loan

Simulate your bridge loan for buying before selling

Real estate buy-and-sell in detail

Real estate buy-and-sell is a commercial activity that consists of acquiring real estate, renovating it if necessary, then reselling it at a profit. It is the main activity of property dealers.

Simple flip

Buy, light renovation, quick resale

Division

Buy a building, divide into units, resale

Change of use

Office → residential conversion

Key tax points

• VAT on margin: Regime applicable to property dealers on existing properties

• Real estate VAT: 20% on new or significantly renovated buildings

• Capital gain: Taxed under the BIC regime for professionals

• Transfer duties: Commitment to resell within 5 years = reduced rate

Warning: Property dealing is a commercial activity that requires an appropriate legal structure (SAS, SASU, SARL...) and registration with the RCS.

Buy & Sell Simulator

Real estate buy-and-sell in detail

Related Tools

Notary Fees

Capital Gains Tax

Renovation Budget

Bridge Loan

Buy & Sell Simulator

Real estate buy-and-sell in detail

Related Tools

Notary Fees

Capital Gains Tax

Renovation Budget

Bridge Loan