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Capital Gains Refunds for Non-EEA Residents Who Sold Property in France

Written by: Bridgewest

Capital-Gains-Refunds-for-Non-EEA-Residents-Who-Sold-Property-in-France.jpgAfter the French Supreme Court determined that a higher rate of capital gains tax on non-EEA (European Economic Area) residents was illegal, now non-residents living outside the EEA who sold property in France, in 2014, can apply for a refund. Our French law firm provide the needed assistance if you want to claim a refund.

A last minute amendment

The capital gains tax rate was reduced starting with January 1, 2015 for individuals living outside the European Economic Area. This was possible through a decision made by the French Supreme Court according to which the larger tax was illegal because it was discriminatory. After the court decision, the tax has a fixed value of 19% (plus social charges), irrespective of the place of residence. Before the court decision, non-EEA residents had to pay a total of 48.8% (33.3% and the additional surcharges). The new rate also applies to property owned through a French property company.
Because the court ruling took place in 2014, former house owners in France who are non-EEA residents can now make a claim for a refund of overpaid taxes. Our French attorneys can help you make this claim and our experts can also assist you in other litigation matters.

The capital gains tax in France

The capital gains tax (impôt sur les plus values) is a tax paid when an individual sells land or buildings, shares and other types of property. Individuals and companies alike are liable for the capital gains tax. For real estate sales in France, this tax applies when the sale is concluded, in the notary office, and is deducted from the sale proceeds before the check is handed over.
Non-residents can appoint a fiscal representative or a tax agent when concluding the sale of a property in France. Our French law firm can provide you with assistance, if you want to sell a house in France. We can help you conclude a power of attorney that will allow another individual to perform the transaction for you.
For more details about taxes in France, please do not hesitate to contact our French law firm.


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