Tax refund for foreign property owners in France

Authors:

REF: 008

A recent ruling of the European Court of Justice (ECUJ) against the  levying of French social contributions could entitle you to refunds and make France a more attractive place for domiciliation and investments.
These changes in French Social Security Contributions legislation affect an estimated 60,000 French or foreign individuals living both in and outside France who have been paying the CSG (Contribution sociale généralisée) and CRDS (Contribution pour le remboursement de la dette sociale) in the last 2 years when renting out or selling their properties in France; they are entitled to be refunded for their CSG/CRDS contributions.

Individuals and income concerned:                                               
These changes in French Social Security Contributions apply to individuals insured under a social security scheme in Switzerland or an EU or EEA country other than France:

• For individuals domiciled in France: Social security contributions on all capital income taxable in France (investment income and income from assets) that are allocated to the budget for social security agencies.
• For individuals domiciled outside France: Social security contributions on income from property in France (including capital gains) that are allocated to the budget for social security agencies.
• It should be noted that the 2% solidarity levy payable prior to 1^st January 2015 is not affected by the de Ruyter ruling inasmuch as it does not fund any branches of social security. Consequently, it cannot be refunded.

Periods concerned:
For individuals who have not yet applied to the tax authority, appeals submitted in 2016 (until the 31^st December 2016) will be admissible for the following periods (claim limitation period of 2 years):

• Capital gains from real property: Social security contributions levied from 1^st January 2014
• Levies based on assessment rolls (for income and capital gains from real property, for example): Levies for which assessments were issued after 1^st January 2014
• Investment income subject to a withholding tax: Social security contributions paid from 1^st January 2014

Our experience in working with clients both based in and outside of France and the expertise our French CPAs offer in French tax rulings make us well-placed to provide the service you need to claim for a refund. Let us help you make the tax refunds to which you may be entitled.

If you feel that you may be affected by the change for non-residents in French Social Contributions Rules but are unsure about how to proceed, please contact us via telephone +33 (0) 1 53 93 94 20 or [email protected].

Our team of experts will happily provide you with more information and can tell you if you are eligible. If you are, we can assist you in filing for a refund.