28th January 2022
Many banks and notaires are still failing to apply the correct rate of social charges on investment income and capital gains.
In 2018 the French government finally conceded to a succession of rulings in the French courts and in the European Court of Justice that the imposition of social charges on certain income of EEA households who were not affiliated to the French social security system, but to another EEA system, was illegal.
These combined charges were levied at the rate of 17.2%. In their place the government introduced a solidarity tax at the rate of 7.5%.
Non-residents seem to also be having similar problems. Although UK residents no longer benefit from the rule, Laura Stephens a UK resident with a property in the Var told us that: