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REAL ESTATE TAXATION 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 the taxation of real estate capital gains realized 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”).
However, the General Directorate of Public Finances has not drawn the legal consequences of the decision rendered by the Council of State on the matter on December 20, 2013.
REAL ESTATE TAXATION:-
Indeed, if it has waived the application of the non-discrimination clause contained in the Franco-Swiss tax treaty, it persists in violating numerous other tax treaties which prohibit any discrimination between taxable persons. Thus, many non-resident foreigners of the European Union, although protected by these texts, are subject to a rate of 33.33% in the event of realization of real estate capital gains in France, against 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 resident in the other Contracting State are not 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 individuals 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 as regards residence. This provision applies to natural persons whether or not they are residents of one of the Contracting States. »
In addition, social security contributions applicable to capital gains realized by non-residents are now around 16%, even though they do not benefit from the French social protection system.
This accolade:-
This discrimination, as abusive as it is scandalous, must be sanctioned by the courts, because it also damages the image of France as a country of human rights.
Therefore, if you have suffered such treatment in 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 support you in this process .
