Until now, when a person (an individual or a company) who was not resident in France realized a capital gain on the disposal of a French real estate or shares in a company with a real estate oriented character, an accredited tax representative who was responsible for calculating and paying the tax related to the capital gain had to be appointed in France by the seller. Such an obligation triggered significant costs and was in contradiction with the EU principles and tax treaties. The ECJ has ruled against this kind of obligation (concerning Portugal in particular).

The obligation to appoint a tax representative is now abolished for individuals and companies whose registered offices are located in a member state of the EU or the EEA (Iceland, Norway and Liechtenstein) having entered into a tax administrative assistance agreement with France. This is a very interesting provision in the light of the future modification of the Luxembourg French tax treaty (see below).

Entry into force: sales as from 1st January 2015.