Capital gains tax part 1

Today I would like to introduce to you, the french capital gains tax system.

You are selling real estate located in France (capital gains on sale of real estate assets)

If you are a resident overseas and selling real estate located in France you could be liable for tax payment based on capital gains resulting from the sale.
Please note : if you need to know  whether you are considered to be fiscally resident or not please consult the section ‘ where are you resident for tax purposes? ’ )

What is the tax liability on capital gains with respect to non – residents ?

The tax computation itself is identical as between a resident and a non - resident. The only difference is the rate of tax due.
19% if the non - resident is ‘fiscally located’ in a member state of the European Economic Area (EEA) (member states of the European Union + Liechtenstein, Iceland and Norway) ;
33 1/3% if the non –resident is ‘fiscally located’ in another state and that state is not on the list of non-cooperating states or territories *.
75% if the non – resident is ‘fiscally located’ in or established in a non-cooperating state or territory.
Please note : Monaco, Andorra, French Polynesia, New Caledonia and St Pierre et Miquelon are not members of the European Union. In the case of those territories the tax rate applicable is 33 1/3%.
As from August 17th 2012,  capital gains realized by non – residents on disposal of real estate assets are subject  to social deductions (CSG, CRDS…) at a flat rate of 15.5%
*Within the definition of article 238-OA  of the ‘Code Général des Impôts’ CGI  (General Tax Code). List of non – cooperating states and territories en 2012 : Botswana, Brunei, Guatemala, Marshall Islands, Montserrat, Nauru, Niue and The Philippines.