Capital Gains Tax Update

capital gains tax

Article collaboration with David Dignac, PriceWaterhouseCooper

If a non French tax resident sells a property in France, the capital gains, according to article 244 bis A of the French Tax code states that:

A person who is a tax resident of the European Economic area will pay the tax applying a levy on his capital gain at 19% which is the same rate than French tax residents.
A person who is a tax resident of another State has to pay on his capital gain 33.33% in general (except if his tax residency is a non-cooperative state or territory – defined by article 238-0 A of the French Tax Code.

Recent court decisions may allow individuals who are not tax residents in the European Economic Area to ask for the application of the levy of 19% (instead of the 33.33%) under certain circumstances.

This means that if you have paid a capital gain on a French property and paid a levy on 2013, you now have the possibility to claim for the refund for the overpaid amount, the difference between 33.33% and 19%.

Since this has to be done according to specific procedures with the French tax administration, it is the ideal time to speak to your financial advisor or tax accountants to see if you are eligible for claiming a refund on your 2013 capital gains tax.

Deadline: You have until the end of this year, December 31st 2014 to claim the refund.

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