Social Charges- Revenge of the Sith

Our clients are now receiving their 2016 tax assessments (Avis d´Impôt) for the tax year 2015 and these unfortunately confirm what we had expected from the communications issued by the French Tax Authorities- that Social Charges (known as Contributions Sociales or Prélèvements Sociaux) remain in place for rental profits by non-residents.

The tax rate is 15.5% as previously and the name and treatment of the tax on the assessments received is also unchanged, even though the pretext given by the authorities for going against European Law and the De Ruyter ruling is that the money received will not go into the mainstream Social Security system.

If this is indeed a legitimate loophole then it is up to the European Union to close it. We have an unfair situation where EU residents with a property in France are paying social contributions/ national insurance in both their home countries and France. With, of course, with no right to an increment in their pension rights.

Will their be a New Hope ? Not soon, it would seem.

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