The European Court of Justice has ruled that it is “illegal” for France to levy social charges on non-French owners for profits from renting or selling property in France.
The ruling means that France is liable to reimburse non-resident owners who have rented out or sold their property in the last two to three years.
The Socialist government of François Hollande imposed a 15.5% “social charge” on capital gains from the sale of second homes or rental income. At the time the government said it would bring in €250 million a year.
This bumped up tax on rentals from 20% to 35.5% and on capital gains from 19% to 34.5%.
It is believed that around 200,000 non-resident British owners were affected.
But the Court of Justice said the tax violates EU law as a resident of a member state must contribute to the social security system of only one member country.
Anyone affected is advised to write to the French tax administration claiming a refund.
The French recently tightened application deadlines. For properties sold in 2012 or 2013, a claim had to have been submitted by December 31 of the year following that sale.
