Since August 1, 2012 non-residents have been subject to CSG/CRDS on rental income or capital gains derived from their French property.

With the addition of the 15.5 percent social contribution, the tax rate on non-residents deriving rental income from French property increased from 20 percent to 35.5 percent whereas the capital gains tax rate increased from 19 to 25 percent to 34.5 to 40.5 percent for EU residents.

Patrick Delas, Solicitor in the French team, comments on the announcement which observers have called a "tax grab" on foreigners, while others have questioned whether it would run foul of EU rules.

The EU commission starts proceedings against France over CSG_ CRDS on non-residents - September 2013.pdf