Civil law Tax law

Tax sharing rights

In terms of taxation, sharing meets certain rules. This is particularly the case in the payment of registration fees in the presence of cash payments or at an auction.

tax sharing rights

Act of sharing
When the act of sharing is established by agreement or court, you must pay:

  • A registration fee (note the existence of sharing and giving a certain date);
  • A tax of land publicity (formality having the aim of informing the thirds of any transmission of property of a real estate).

The registration fee and land advertising taxes are 1.10% of the net asset value (though shared) minus liabilities (debts succession).

Sharing with balance or gain
Sharing may provide cash payment, that is to say a sum of money to compensate the inequality for certain lots. The balance is paid by the coheir property which has greater value to the injured heir.

An heir may also have an added value: upward revaluation of a property if it has appreciated in value between the beginning and the end of the division.

In this kind of sharing, the registration fee of 1.10% includes cash payments and capital gains. There is therefore no additional taxation of capital gains and cash payments.

Good to know: This preferential system is only applicable if sharing is undivided original members, their spouses, ascendants or descendants.

An auction is an auction for a property in joint ownership (several persons are joint owners of the same mass of goods). When the bidding ends undivided, he is paid a registration fee or tax agency fees of 1.10% on the total value of goods.

Good to know: This fee is calculated on the total value of goods sold, even if an interest holder acquires.

Assignment of rights
As part of an estate, a joint heir may sell its rights to a third party. The transfer is then subject to normal registration fees.

If an undivided sold his rights to another member of the undivided (or the spouse, ascendant or descendant of a member), is due only right to share with a rate of 1.10%. This applies to the value of the share sold. But if the transfer put an end to the joint possession, the rate of 1.10% applies then to the net amount of the totality of the goods (made deduction of the liability).