France’s National Assembly has proposed a legislative change aimed at curbing tax evasion among property flippers by tightening the rules on capital gains tax exemptions for primary residences. Under the new measure, homeowners must hold onto their property for at least five years before they can qualify for the exemption, a move intended to discourage short-term property speculation.

On 30th October, the French National Assembly voted to “fight against the mechanisms of ‘speculative somersaults’” with a measure targeting those who buy properties as primary residences with the intention of quickly reselling them for profit. The measure is yet to be fully adopted and will be considered as part of the overall 2025 Finance Bill, which is to be voted on by the end of the year.

The bill, originally tabled by socialist MPs Peio Dufau and Inaki Echaniz, targets speculators who buy real estate in tourist spots with high rental demand or in up-and-coming areas.

Previously, homeowners only needed to declare a property as their main residence to avoid real estate capital gains tax. Under the new measure, however, buyers must retain properties for a minimum of five years before the exemption applies.

“Naturally, this condition would not apply if it is a sale with a view to acquiring another main residence, which would otherwise penalise any transaction other than first-time buyers,” the amendment specifies. “Similarly, this period could be lifted when a compelling reason justifies it, such as a professional transfer, long-term hospitalisation, entry into an EHPAD, or even death or separation in particular.”