Estimated reading time (in minutes)
Judgment of the Court of Justice of the EU The Court of Justice of the European Union ruled against France regarding the levy of the CSG and the CRDS on the income from the assets of non-resident, French and foreign taxpayers. They can demand repayment within two years after payment of social security contributions .
Real estate capital gain of foreigners: –
France does not have the right to impose social security contributions on people who do not benefit from Social Security. The Court of Justice of the European Union (CJEU) delivered a ruling to this effect on Thursday, February 26, 2015. The judicial authority ruled that France does not have the right to deduct the CSG and the CRDS from the income of non-resident taxpayers domiciled in France. More specifically, the Court condemned France against a Dutch national working in the Netherlands but domiciled in France to whom it applied social security contributions on life annuities concluded in the Netherlands.
According to European case law, a taxpayer does not have to pay social security contributions from several countries on this income. In other words, he is liable to only one social security: concretely, a French cross-border worker working in Germany and whose income is already subject to social security contributions across the Rhine does not have to pay French social security contributions. A prohibition which has been valid since 2000 for earned and replacement income (salaries, retirement pensions, allowances, etc.) and which now officially applies to income from assets (real estate income, interest from a life insurance contract …). ).
REIMBURSEMENT AND PRESCRIPTION:-
The conflict settled by the CJEU dates back to the summer of 2012. The first finance law of François Hollande’s mandate introduced the application of social security contributions at 15.5% on the property income of non-residents as well as their capital gains real estate. The measure has since been strongly contested, in particular by wealth management professionals or even Frédéric Lefebvre, UMP deputy for French expatriates in North America.
Following the judgment delivered by the Luxembourg court, taxpayers who have had to pay social security contributions since the entry into force of the measure can demand a refund. Please note, however, that a limitation period of two years applies to claims. It runs from the date of payment of social security contributions. Indeed, some taxpayers can no longer obtain compensation: it was thus necessary to submit a request for reimbursement before 31 December 2014 for capital gains on real estate realized in 2013. Conversely, social contributions on income land collected in 2012 and taxed in 2013 can still be reimbursed. In this case, the request must be sent before December 31, 2015.
Our firm will assist you in the event of a claim in order to guarantee your reimbursement .
