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Final call to claim a refund of your French social charges!

Final call to claim a refund of your French social charges!

Over the past two years, we wrote a few articles on the case law De Ruyter [2015] (case C-623-13-Mr De Ruyter), where the European Court of Justice ruled that taxing French social charges on source property income for foreign tax residents was against EU law.

Since that ruling, foreign tax residents, whether residing in or outside the European Union were able to claim a refund of the French social charges they have paid on their French property income (capital gains or rental income).

Since 2014, our firm has successfully claimed the refund of social charges for foreign tax residents on their French property income. However, good things always come to an end!

In 2016 the French government changed its tax law to make the taxation of social charges on property income “EU compliant”, although it is argued by some lawyers that French tax law is still against EU principles and may be subject to further challenges.

Furthermore, it should be reminded that according to French procedural tax laws, any claim must be submitted within 2 years of the payment of the social charges on capital gains or the French income tax return.

What does it exactly mean?

  • It means that for any sale which have occurred in France after 1st January 2016 or for any French income tax return dated 2016 onwards, it is no longer possible to claim a refund of the French social charges;
  • If you sold your French property in 2015 and paid social charges on the capital gains, you have up to December 2017 to claim them back!
  • If you paid social charges on your French property rental income in your 2015 French income tax return, you have up to December 2017 to claim them back!

Why should you use us?

  • We are proactive and will help you to gather the necessary documents to make your claim;
  • We will issue your claim within five working days from receipt of your instructions and necessary supporting documents;
  • We will follow up with the French Tax Administration and update you throughout the process, which takes 12 months on average.

So, if you sold your French property in 2015 or paid social charges on your French income tax return 2015, time is of the essence!

If you are in the above situation, please contact us at info@francophile-law.com and we will do the rest.

Loic Raboteau

French legal advisor, Director