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Tax representation By making a taxable real estate capital gain in France, you are required to appoint a tax representative approved by the French tax administration (CGI, article 244 bis A).
Since January 1, 2015, this obligation only applies to non-residents domiciled or established outside the European Union, Iceland and Norway .
This modification has considerably reduced the market for tax representation of non-residents.
This results in much greater competition between the few players in this niche of activity.
As lawyers, we are frequently approached by these companies who are short of work.
This can of course become an opportunity for the consumer.
By consulting us, we will advise you effectively to find the service provider who will offer you the best price for this service.
In addition, the reform gives more work to the notary who must provide the service previously provided by the tax representative.
This work is a source of responsibility for notary offices which have an increasing tendency not to reason in favor of the taxpayer.
Do not hesitate to consult our law firm which will guarantee you only pay what you owe, and nothing more, to the tax authorities.
We recently saved a client 120,000 euros, proof that the analysis of these real estate capital gains files must be entrusted to lawyers who are experts in the field.
Do not hesitate to contact us:
DAMY law firm
13 Boulevard Gambetta 06000 NICE
WHEN DO YOU REALIZE A GAIN ON THE SALE OF A PROPERTY?
You realize a capital gain on the sale of real estate when you sell real estate located in France (whether it is land or a building) or rights relating to such property (usufruct , bare ownership, right of elevation, etc.) (CGI, article 150U).
Likewise, the tax regime for real estate capital gains will apply when: – you transfer shares in a predominantly real estate company, whatever its form or tax regime (income tax or corporate tax ) (CGI, art. 150 UB) – you are a partner in a partnership subject to income tax in the property income category (mainly real estate partnership) up to your share in the results of this company when it transfers a building located in France or rights relating to such a building (CGI, art. 150 U).
DO YOU NEED TO APPOINT A TAX REPRESENTATIVE?
If you are not a resident of France on the day of the sale, French law requires you to appoint a tax representative to be able to carry out your sale if you are domiciled or established outside the European Union, Iceland and Norway (CGI, Sch II, art 171c).
If the seller is a natural person not domiciled in France The appointment of a tax representative is mandatory:
– when the sale price is greater than €150,000
– and the property has been held for less than 30 years
– regardless of the amount of the capital gain, and a fortiori in the event of a capital loss
If the seller is a company or organization with its head office outside France, the appointment of a tax representative is mandatory in all cases, regardless of the sale price and the period during which the entity has owned the property. GOOD If the seller is a partnership
with its head office in France and not subject to corporate tax – If all the partners are natural persons: the appointment of a tax representative will be obligatory if the share held by the non-resident partners is greater than €150,000 and the property has been held for less than 30 years;