Social charges ruling is imminent

THE CONSEIL d’Etat is being advised to put into French law a European ruling that is expected to lead to refunds of social contributions for non-residents.

This means that those who are eligible – ie. who paid CSG and CRDS on property capital gains made from 2013 or on rental income starting in 2012 – should lodge reclaim requests as soon as possible.

The top administrative court is currently considering the case of Mr De Ruyter, which revolves around whether people who are subject to another country’s social security system should pay French social contributions such as CSG and CRDS on income from property.

It is expected to rule definitively before the end of the month, however the rapporteur – an official who advises the court – has recommended that France should apply a ruling given last year by the European Court of Justice which was in Mr De Ruyter’s favour.

Strictly speaking the De Ruyter case relates to a French resident who, because he works abroad, pays into another country’s system. However lawyers say it should have the same impact on non-residents with income from French property – such as Britons in the UK with French holiday homes they have sold or that they rent out.

See August’s issue of the Connexion for more on this and for advice on making claims.