Under French law, non-residents are subject to social charges (prélèvements sociaux) on rents and capital gains they perceive from their French property. A lower social charges rate of 7.5% (instead of full rate of 17.2%) may apply to taxpayers affiliated with the social security system of another European Union (EU) or European Economic Area (EEA) member state or Switzerland. However, following Brexit and from 1st January 2021, UK residents could no longer benefit from this lower rate.
Nonetheless, the French tax authorities have recently indicated on their website in a Brexit FQA that, in light of the agreements for the UK's exit from the European Union signed on 12 November 2019 and 30 December 2020, this exemption is maintained if the UK taxpayers meet the following conditions:
- They are affiliated to the British social security system;
- They are nationals or legal residents of France, the United Kingdom or another EU Member State;
- They are not covered by a French compulsory social security scheme.
The French tax authorities have also states that UK residents, who have already wrongly paid the social charges at the full rate (17.2%) could obtain a refund within the claim period.
British residents should carefully consider the possibilities of claiming if they fall within the above criteria. British pensioners or other British individuals who are residing in France, who are resident in France but not affiliated with the French social security system, may also benefit from this lower rate under the same conditions.
Our firm is at your disposal to study your situation and to make a claim for reimbursement of the social contributions wrongly paid.
Please contact Loic Raboteau via email at firstname.lastname@example.org if you need to make a claim of French social charges.