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A few months ago, our Firm won its case against the Tax Administration, which discriminated between Swiss citizens and French citizens in the context of taxation on real estate capital gains made on French soil (see our article: “End of the spoliation of Swiss residents in terms of real estate capital gains – Call for the mobilization of Swiss taxpayers stripped by the French tax authorities”).

Tax Discrimination Against Non-EU Citizens

However, the Directorate General of Public Finances has not drawn the legal consequences of the decision rendered by the Council of State in this matter on December 20, 2013.

Indeed, if it has waived the application of the non-discrimination clause contained in the Franco-Swiss tax treaty, it persists in violating many other tax treaties which prohibit any discrimination between taxable persons. Thus, many foreigners who are not residents of the European Union, despite being protected by these texts, are subject to a rate of 33.33% in the event of the realization of capital gains in real estate in France, compared to 19% for citizens of the Union. .

American citizens thus benefit from the protection of article 25 paragraph 1 of the Franco-American tax treaty under the terms of which:

“Natural persons who are nationals of a Contracting State and residents of the other Contracting State shall not be subject in that other State to any taxation or obligation relating thereto which is other or heavier than those to which they are or may be subject natural persons who are nationals and residents of that other State, and who are in the same situation. “.

Similarly, Canadians must be subject to Article 24 paragraph 1 of the Franco-Canadian tax treaty which specifies:

“Natural persons possessing the nationality of a Contracting State shall not be subject in the other Contracting State to any taxation or obligation relating thereto which is other or heavier than those to which are or may be subject natural persons possessing the nationality of that other State who are in the same situation, in particular with regard to residence. This provision applies to natural persons whether or not they are residents of one of the Contracting States. »

Tax Discrimination Against Non-EU Citizens in France

In addition, the social security contributions applicable to real estate capital gains made by non-residents are now around 16%, even though they do not benefit from the French social protection system.

This discrimination, which is just as abusive as it is scandalous, must be brought to a judicial end, as it alters, moreover, the image of France as a country of human rights.

Consequently, if you have undergone such treatment during the last two years, it is perfectly possible to obtain reimbursement of this abusive taxation, so that the rate of 19% is applied to you instead of 33.33%.

Our firm, which has the necessary expertise, is at your disposal to advise and assist you in this process.

Société d’avocats DAMY – 2020 – TAXATION OF PROPERTY VALUES MADE IN FRANCE: AMERICAN AND CANADIAN CITIZENS STILL DISCRIMINATED BY THE TAX ADMINISTRATION