The “de Ruyter” case handled by the CJEU on February 26th, 2015 and by the “Conseil d’Etat”on July 27th, 2015, considered that investment income should not be subject to French social contributions where the taxpayer is affiliated to another social security scheme (whether in the non-French EU, EEA or Switzerland).
On October 22nd, 2015, the French Tax Authorities issued guidelines to registration services requesting to stop collecting social contributions on real estate gain if the taxpayer is affiliated to a State social security scheme listed by the decision (regardless of the nationality or the residence location).
No need to evidence the affiliation to such a foreign social security scheme to benefit from the exemption of social contributions on real estate gain.
It is already possible to file claims to obtain a refund on social contributions already paid.
Delcade’s tax team remains at your service for assisting you in this process.
Tax regime of real estate gains realized by non-resident taxpayer as from 2016: to be continued
However, the Social Security Financing Bill for 2016 currently pending before parliament tends to maintain subjection of real estate capital gains, realized as from January 1st 2016.
In order to be compliant with EU regulations, the Government tries to re-allocate the social contributions, so that they no longer finance social security schemes. On the contrary, the Senate voted for an amendment exempting real estate gain from social contributions.
The tax regime of real estate gains realized by non-resident taxpayer is still unclear.