Clé France

It is official! You can claim a refund of the French social charges.

The French Tax Administration has confirmed in a press release of 20 October 2015 the modalities for a refund of the French social charges.

The “Conseil d’Etat” (CE), in a decision dated July 27, 2015, drew the consequences of the European Court of Justice (ECJ) judgement of 26 February 2015 (Case C-623/13, Mr de Ruyter). It confirmed the taxation of social charges on French income-generating assets of persons affiliated with a social security system of another Member State of the European Union (EU) or European Economic Area (EEA) or Switzerland is against European Law.

Following the CE decision, the government has now confirmed that the payment of social charges can be claimed back in accordance with the following conditions:

You must be registered under a social security scheme of another state other than France located within the EU, EEA or Switzerland.

If you are not residing in France, you can claim the social charges that you have paid on your French Property rental income or the social charges that you have paid on the gains when you sold your French property.

If you are residing in France, you can claim the social charges you paid on your assets income as well as well as your investment products.

Exclusion

The total rate of social charges is 15.5%. 

The French Tax administration confirmed that the 2% solidarity levy (“prélèvement de solidarité”) paid before the 1st January 2015 is not affected by the Ruyter case as this tax does not finance the French social security system.

Deadline 

Under French law, any tax claim must be issued by 31st December of the second year following the year in which the tax was paid.

It must be reminded that there is a time deadline for non-residents who have paid social charges in 2013 on their 2012 incomes. They have until 31st December 2015 to submit a claim for a refund. Similarly, non-residents who sold a French property in 2013 and have been subjected to social charges are able to claim the corresponding tax until 31st December 2015. 

For those who have paid undue social charges in 2014 or have just received their tax assessment, we recommend them to issue a claim as soon as possible. 

How to claim the social charges?

The tax claims can be issued to the French tax office for non-residents or to the tax office where you are registered. They must be legally motivated and include all supporting documents establishing the right to claim for a refund of the French social charges.

We recommend that you seek legal advice to ensure that your claim has been correctly drafted and accompanied by the necessary supportive documents.

This article was written by Loic Raboteau, French Legal Advisor and director of French Legal Consulting.

Francophile legal Consulting can assist you with international property matters. For more information on this topic, please do not hesitate to contact Loic Raboteau, managing director by completing the form below. 

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A little more about FRANCOphile Legal Consulting Ltd.

The company was created in response to the need of legal experts for international private clients and businesses. People are no longer confined within their own country boundaries to work, create a business or purchase assets. National, international laws and new technology have enabled people and businesses to move and expand internationally, creating a demand to resolve cross-border issues.

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Benefiting from an extensive network of international lawyers, solicitors, accountants and financial advisors based in London and in several jurisdictions, FRANCOphile Legal Consulting Ltd is able to handle your interests in different countries around the world.

Our approach and solutions are tailored to our clients’ needs. We believe that our clients are unique and warrant distinctive service.

Our international coverage includes France, London, Tunisia, Morocco, Egypt and Mauritius. If you would like to know more about us then fill out the contact form above and we will be right back to you.

Hi Sharon, 

Sorry I have not got back to you until now...

Thank you, I had a very nice trip to France, after going over the viewings we had to discount all but one, although the properties we discount would make someone a nice home they would not totally meet our needs.

However we did like a property in Lower Normandy and we will make a formal offer today.

Kind regards, Wutt.

Even arraging a viewing trip at the last moment can help you find the house of your dreams, in busy periods it is best to give us a week or so notice so we can fit you in, this client saw several houses for sale in Normandy with us and we are now taking them through the buying process step by step and he could be 'in the house' by Christmas 2015!

Hello, David,

My first viewing with your agent was very good, she is professional and helpful and I look forward to seeing the next property this afternoon.

Take care, R.

We are sure we will have a "property that suits" after all we currently have more than 1000 houses for sale in Brittany on our website and a few more thousand in most regions of France so Cle France is the place to be.

Robert is still looking for the right house in Brittany so if he does not find the right house this afternoon [we hope he does and we have some belters lined up for him] I am sure he will find something soon!

So you are considering buying a property in France? you have come to the right place, you will need to be aware of the different steps in the French buying process, which is a little different to the way we buy property in the UK.  

Visit the pages located under our "Buying Process" tab on the website and you will find a step by step guide, one of the main differences is that in France your are 'committed' to the purchase a lot earlier on in the process than you are used to in the UK.

It is also beneficial to get further advice along the way, perhaps on matters such as health cover, home insurance, mortgages and of course making sure your money stretches as far as possible when buying euros with your hard-earned GB Pound to buy your dream home in France with us. 

Ben Amrany at FC Exchange is often asked about the best time to make your currency transfers when buying a property in France, as currency fluctuations can increase the price you pay when you eventually purchase. Because Ben has been working exclusively with Cle France for many years he understands the buying process and can provide guidance on the currency implications throughout.

The best type of service is one that comes highly recommended, that is why you should use the services of Ben Amrany at FC Exchange.

Q: How does the property buying process differ in France to that in the UK?

A: Buying a property in France is not a complicated process, if you speak fluent French (which we do so you are in safe hands) in many ways, it is clearer, safer and more straightforward in France than in the UK.

The main difference is that the sale of a property becomes contractual earlier on in the process in France when compared to the UK, this means when you find a property during your viewing trip and put in an offer that is accepted, you can return home safe in the knowledge that no one else will be in a position to buy it as once an offer is accepted the property is withdrawn from the market and no further clients will be shown the property.

On your return home we are busy working on your behalf and can advise on everything to do with buying a house in France and moving to France to live full time or just to enjoy your property as a holiday home. We have you covered at every stage, you are in safe hands.

If you need to buy or sell sterling and would like to be kept up to date with all the latest data releases and exchange rate movements then feel free to contact myself Ben Amrany. If you are buying or selling a house in France we will make sure your monies are in the right place at the right time, we work hand in hand with you and Cle France.

For more information on the currency service I can provide please feel free to contact myself...

Ben Amrany from FC Exchange follow this link or phone and ask for myself and quote "Cle France" on 020 7989 0000.

You may contact me directly using this form (click here) with your requirement and I will explain the options that are available to you in getting the best exchange rate. 

Do you want more information ?

So if you need to buy or sell sterling and would like to be kept up to date with all the latest data releases and exchange rate movements then feel free to contact myself Ben Amrany. If you are buying or selling a house in France we will make sure your monies are in the right place at the right time, we work hand in hand with you and Cle France.

For more information on the currency service I can provide please feel free to contact myself...

Ben Amrany from FC Exchange follow this link or phone and ask for myself and quote "Cle France" on 020 7989 0000.

You may contact me directly using this form (click here) with your requirement and I will explain the options that are available to you in getting the best exchange rate.  

Blog submitted by: Ben for The French Property Network - Cle France.

For everything you need to know about French property visit www.clefrance.co.uk

So you are considering buying a property in France? you have come to the right place, you will need to be aware of the different steps in the French buying process, which is a little different to the way we buy property in the UK.  

Visit the pages located under our "Buying Process" tab on the website and you will find a step by step guide, one of the main differences is that in France your are 'committed' to the purchase a lot earlier on in the process than you may be used to in the UK.

It is also beneficial to get further advice along the way, perhaps on matters such as health cover, home insurance, mortgages and of course making sure your money stretches as far as possible when buying euros with your hard-earned GB Pound; to buy your dream home in France with us. 

Ben Amrany at FC Exchange is often asked about the best time to make your currency transfers when buying a property in France, as currency fluctuations can increase the price you pay when you eventually purchase. Because Ben has been working exclusively with Cle France for many years he understands the buying process and can provide guidance on the currency implications throughout.

The best type of service is one that comes highly recommended, that is why you should use the services of Ben Amrany at FC Exchange. 

Q: Why should I consider using a currency specialist to transfer the deposit for my French home?

A. An experienced currency trader can discuss your budget and exact requirements with you and help you avoid the risk of currency market fluctuations eating away at your money.

They can arrange a forward contract for you, which essentially locks in the exchange rate at a time that suits you. This means you will know exactly what you will need to pay for your deposit and final property payments, and how many euros you will get for your sterling transfer.

Want a quick summary of the buying process in France?

Signing the 'Bon de Visite' and making an offer:

You will be asked to sign a 'Bon de Visite', this is normal practice in France and simply means that if you decide to proceed with a purchase, you will make the offer through our agent and not through another agent or privately approach the vendor.

Remember that it is not commitment to an actual purchase, you are not signing your life away.

To make an offer to us either at the point of viewing or on your return home [just email or pick up the phone 01440 820 358] it is just as you would in the UK and our agent will put that forward to the seller, if accepted or after a little negotiation the contract 'Compromis de Vente' is drawn up and both parties sign up.

The Compromis de Vente:

This is the first contract, like the 'Exchange of Contracts' in the UK but a lot sooner in the process i.e. at the start, it is signed by both buyer and vendor, which means that both parties are committed to buying and selling the property.

Once signed the vendor is bound to go ahead with the sale, but you are given a ten-day 'cooling off period' and can walk away from the purchase in this time. This is commonly known as the 'seven-day cooling off period' but this year it was extended to 10 days.

After the ten-day period is up, you are also bound to go ahead with the purchase. It is at this stage, after the 10 day calling off period, you pay the 10% deposit [it can vary but normally 10%] of the agreed purchase price, to be kept by the notaire or less frequently the agent. There will be a target date for signature of the 'Acte de Vente' at this stage but this can be changed at any time to suit both parties, decided by the notaire.

Ben Amrany at FC Exchange can advise you on the best time to book a forward contract to protect the price of this deposit, and for the final payment to complete the purchase.

So if you need to buy or sell sterling and would like to be kept up to date with all the latest data releases and exchange rate movements then feel free to contact myself Ben Amrany. If you are buying or selling a house in France we will make sure your monies are in the right place at the right time, we work hand in hand with you and Cle France.

For more information on the currency service I can provide please feel free to contact myself...

Ben Amrany from FC Exchange follow this link or phone and ask for myself and quote "Cle France" on 020 7989 0000.

You may contact me directly using this form (click here) with your requirement and I will explain the options that are available to you in getting the best exchange rate.

Do you want more information ?

So if you need to buy or sell sterling and would like to be kept up to date with all the latest data releases and exchange rate movements then feel free to contact myself Ben Amrany. If you are buying or selling a house in France we will make sure your monies are in the right place at the right time, we work hand in hand with you and Cle France.

For more information on the currency service I can provide please feel free to contact myself...

Ben Amrany from FC Exchange follow this link or phone and ask for myself and quote "Cle France" on 020 7989 0000.

You may contact me directly using this form (click here) with your requirement and I will explain the options that are available to you in getting the best exchange rate.  

Blog submitted by: Ben for The French Property Network - Cle France.

For everything you need to know about French property visit www.clefrance.co.uk