In addition to taxes, Capital Gains arising from the sale of French properties are subject to social charges at a rate of 15.5% First introduced in 2012, the latest 2014 French budget (loi de Finance 2014) confirmed and extended these new taxes.
The EU has however challenged the right of the French Government to levy Social Security taxes on Capital Gains made by EU residents not residing in France ((procédure EU Pilot 2013/4168). EU laws indeed guarantee that EU citizens are not charged social charges in several member states (CEE n° 1408/71).
A court decision on the compliance of French laws with regards charging CSG and CRSG on Capital Gains is expected before November 2014.
Should France be found to be breaching EU regulations, social charges could be lifted and individuals who paid social charges on French Capital Gains could be eligible for a refund.
To ensure that they can qualify, a complaint to the French tax authority should be logged as soon as possible.
For further information, contact us or see:
Source : http://nizet-afe.typepad.fr/ "fiche CSG CRSG"