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.
The announcement provoked an outcry in the United-Kingdom, where an estimated 500,000 residents own holiday homes in France. Some observers called the French proposal a "tax grab" on foreigners, while others questioned whether it would run foul of EU rules.
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Patrick is a dual qualified solicitor and avocat au barreau de Paris. His specialist work includes advising on French and cross-border legal and tax issues including inheritance tax, capital gains tax, wealth tax and trust reporting obligations.