UK residents to benefit from CSG/CRDS exemption on capital gains realised in France on transfer of immovable property

In an update of the Q&A on Brexit, the French tax authorities have recently reversed their previous doctrine by acknowledging that the exemption from social security contributions on capital gains on real estate and income, normally reserved only for nationals of the European Economic Area (EEA) and Switzerland, could also apply to British residents.

Consequently, taxpayers residing in the UK will be able to claim the CSG and CRDS exemption for income from property received as of January 1, 2021, as long as they meet certain conditions.

This represents a potential reduction from 17,2 to 7.5 % of the social contributions.

The French tax authorities also specified that taxpayers who have already wrongly paid social security contributions may obtain a refund within the time limit for filing a claim under ordinary law.