According to Article 150 VI of the General Tax Code (CGI), the flat-rate tax on precious objects (TFOP) applies to sales of:
jewelry,
works of art, collectibles, or antiques,
and precious metals.
The rate varies depending on the nature of the item sold:
11% for precious metals (gold, silver, platinum);
6% for jewelry, works of art, collectibles, and antiques;
0.5% CRDS if the seller is a tax resident in France.
The TFOP is due upon sale and applies to the sale price, unless it is less than €5,000, in which case the sale is exempt.
This is where things get complicated.
In 2022, the Paris Administrative Court of Appeal had ruled that luxury wristwatches should not be considered jewelry for the purpose of the TFOP, even if they contain gold or precious materials.
However, this decision was overturned by the Council of State on December 12, 2023 (CE, 9th and 10th combined chambers, no. 470249).
The Council of State reiterated that jewelry is defined as:
“crafted objects, precious by their material or workmanship, intended to be worn as adornment.”
In other words, any watch worn as an accessory, even if not made of gold, can be considered jewelry and therefore subject to the TFOP.
The tax administration, in its guidelines (BOI-RPPM-PVBMC-20-10, §50), maintains this position:
- wristwatches are considered jewelry, regardless of the materials used.
Some old or rare collector watches (Rolex vintage Submariner, Patek Philippe limited edition, Omega Moonwatch, etc.) can also be considered collectible items.
In this case, taxation could vary depending on the rarity, historical value, or specificity of the model.
As the legislator has not clarified the distinction between a jewelry watch and a collector watch, a legal gray area persists.
A reform of the TFOP’s scope would be welcome to secure the situation of collectors.
When the sale does not fall within the scope of the TFOP, or by option, it falls under the capital gains regime for movable property (Article 150 UA of the CGI).
This regime applies in particular to:
to individuals reselling a watch acquired for collection or investment,
to hobbyists carrying out occasional resale operations (and not professional ones).
The gross capital gain is equal to:
Sale Price – (Acquisition Price + Restoration Costs + Refurbishment Costs)
It is taxed at:
19% income tax,
17.2% social contributions,
resulting in an overall rate of 36.2%.
1. Exemption for Low Value
Sales of watches with a price less than or equal to €5,000 are exempt.
2. Exemption After 22 Years of Ownership
A 5% reduction per year of ownership beyond the 2nd year allows for total exemption after 22 years.
However, one must be able to justify the date and purchase price — with an invoice, certificate of origin, or dated appraisal.
Practical Tip: Luxury watch enthusiasts must carefully keep all supporting documents for acquisition and restoration.
The most favorable regime depends on several parameters:
| Situation | Applicable Regime | Taxation |
|---|---|---|
| Watch sold < €5,000 | Total Exemption | 0% |
| Watch sold > €5,000, considered jewelry | TFOP (6.5% with CRDS) | On sale price |
| Rare or old watch, held for a long time | Capital gain on movable property | 36.2% on capital gain, with reduction based on duration |
Yes, if the price exceeds €5,000. Depending on the case, the sale will be subject to the TFOP or the capital gains regime for movable property.
If it is worn as an ornament and not kept for its historical value, it falls into the jewelry category, thus subject to the TFOP (6.5%).
Yes. Even if the watch falls under the TFOP, the seller can opt for the capital gains regime if they hold proof of purchase.
They can be treated as collectible items, subject to the capital gains regime, with exemption after 22 years.
A tax adjustment and penalties of 10% to 40% in case of incorrect declaration or lack of supporting documents.
BOFiP — TFOP (official basis, rules, €5,000 threshold, rate)
Council of State — decision no. 470249 of 2023-12-12 (watches considered “jewelry”)
Économie.gouv — “Sale of Precious Objects: What Taxation?” (recalls TFOP, includes watches)
VV Avocat law firm assists you in all your tax audit and litigation procedures, in both French and English.
For personalized support, please see our Fees page.
A tax lawyer can:
determine the applicable tax regime for your watch (jewelry or movable property);
optimize taxation in case of a significant sale (Rolex, Patek Philippe, Audemars Piguet, etc.);
secure the transaction and avoid tax reclassification;
represent you in case of a tax audit.
The VV Avocat Firm, based in Toulouse, advises individuals, collectors, and English-speaking expatriates on wealth taxation and valuable objects.