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Non-French tax residents: The end of the 33.33% capital gains tax rate

Non-French tax residents: The end of the 33.33% capital gains tax rate

Until 1 January 2015, capital gains deriving from the sale of real estate located in France used to be taxed at different rates, depending on the country where the seller was a tax resident.

As such, sellers that were EEA residents for tax purposes used to be taxed at 19%, while non EEA residents were taxed at 33.33% (out of French social contributions).

From 1 January 2015, every non-French tax residents will be taxed at a the flat 19 % rate on their capital gains resulting from the sale of French real estate.

Taxpayers that already paid their capital gains tax at 33.33% rate are eligible to claim a refund of the difference between the old rate (33.33%) and the new rate (19%), i.e., 14.33%. Applications for such a refund will be possible until 31 December of the second year following payment of the capital gains tax.

For instance, for a property sold and capital gains tax paid in January 2013, an application for a refund of the difference between 33.33% and 19% can be lodged until 31 December 2015.

We would be happy to assist you in lodging such an application. For more information, please contact Cédric Koeppel: cedric.koeppel@gordonblair.com