Back Taxes and Getting Them Back

François HollandeFebruary 26th the European Court of Justice (ECJ) put a halt to the 15.5% French Social Taxes imposed by the Hollande Administration since 2012 on the capital gains and rental income derived from French real estate on non-French tax residents that are subject to other foreign social security. The “Ruyter Decision” “prohibits an EU resident from being required to contribute to two different EU member States social security regimes simultaneously.”

The ruling is expected to allow a refund to investors who have paid these additional social contributions in France on the sale of a French property up to the last two years. If you paid these taxes on your rental property or sale wrongly, you have until December 31st, 2015 to make your claim. While there are guidelines that prevent you from making the claim within 12 months of the sale, even the deadlines can be challenged, so don’t hesitate to write the tax authorities.

Send a letter by registered mail to:

Service des impôts des particuliers – Non-résidents
10 rue du Centre
TSA 10010
93465 Noisy le Grand Cedex
Telephone:: 01 57 33 83 00
Email: [email protected]

Your letter can be written as follows:

    Je souhaite faire une réclamation contentieuse concernant mon imposition aux prélèvements sociaux d’un montant de (insert sum) sur mes plus-values     immobilières (property capital gains) / revenus de locations (income from     rents) / en (year), vu l’avis de la Commission Européenne (Procédure Pilot     no. 5973/13) et l’avis de l’avocat général du 21 octobre 2014 dans l’affaire C-623/13 de la Cour de Justice de l’Union Européenne. Je demande le remboursement de ces sommes, qui n’étaient pas dûes en raison du fait que je     ne suis pas résident/e (add ‘e’ if you are female) fiscal/e en France.

    Dans l’attente d’une réponse de votre part, je vous prie d’agréer madame, monsieur l’expression de mes sentiments distinguées.

If you are about to sell, ask your Notaire for a written confirmation that there will be no deduction for social charges on your property before signing your Promesse or Compromis de Vente.

SPECIAL NOTE:There are only 40 signatures to go before I send our petition “Mayor Anne Hidalgo, Paris France: Amend the Paris short-term rental laws and make them fair for all” to Madame le Maire Anne Hidalgo! Do not be afraid of putting your name on this petition — it will not lead to the city finding your short-term rental apartment! But we need everyone and anyone to support the cause.

Visit secure.avaaz.org/en/petition/Mayor_Anne_Hidalgo_Paris_France_Amend_the_Paris_shortterm_rental_laws_and_make_them_fair_for_all/ and send it to all your friends and media contacts to get the word out! Many thanks.

A bientôt,

Adrian Leeds

Editor, French Property Insider

Email: [email protected]

P.S. I’ll be writing to you next week from the Big Apple! For those of you in the New York City area, who would like to know more about investing in France, I will be available for private consultations March 13th through 18th. Consultations are typically two hours, and I will be offering my usual euro fee at the same rate, but in U.S. dollars. Email me personally to make your appointment: [email protected]