The Amending Finance Act makes all non-residents’ real estate income from French sources subject to all social taxes withholdings, and not only to the general social contribution (CSG).
First, non-residents who receive real estate rental income from property located in France as of January 1, 2012 will be subject to the social withholdings at the full rate of 15.5%. These withholdings will be based, audited and collected pursuant to the rules applicable to income taxes.
Second, non-residents who, as of the act’s publication date, directly or indirectly realize capital gains on sales of real estate located in France will also be subject to the social taxes withholdings at the full rate of 15.5%. Hence, an individual residing in a Member State of the European Union who makes capital gains within the scope of Article 244 bis A will pay a total of 24.5% in total taxes, income taxes and social withholdings, as opposed to 19% previously. The withholdings will be based, audited and collected pursuant to the rules applicable to the withholding in Article 244 bis A of the French Tax Code.