Social charges update
The French government has reintroduced the controversial social charge on property sales made by non-residents. This shift is the latest outcome in a case whose guidelines have oscillated as it struggles to settle on a definite ruling. It was only the end of last year that the charge was found to be unlawful when it was announced that refunds on social charges paid by non-residents could be claimed. Sellers who were forced
to pay the charge during the French tax years of 2013 and 2014 can still be reimbursed. However, as a result of the recent amendments to Article 24 of the Loi de financement de la sécurité sociale 2016, the French government has claimed it can legally levy the social
charge on all sellers of French property from 1 January 2016. David Anderson of Skyes Anderson Perry Solicitors in London has labelled it a “retrograde step which sends out all the wrong messages”. A highly contentious issue, this latest development will likely
prompt a return to the European Court.