French social charges for non-residents deemed unlawful

Photo credit: Christine â„¢

The French Council of State has confirmed that non-residents should not have to pay social charges on income from a French property.

The Conseil d'Etat was responding to a judgement made by the European Court of Justice earlier this year, when it was ruled that social charges issued to a French resident working in the Netherlands were against European law and should therefore be banned.

The final ruling of the dispute, though, sat with the French Council of State, which confirmed the verdict at the end of July.

The CE ruled that the claimant who was working in the Netherlands and was affiliated with the Dutch social security system should not pay any French social contributions on incomes from his assets, explains Francophile Legal Consulting.

"Following this important court ruling, the French government will have to do what is necessary to Change his legislation to be in conformity with European regulations. A bill was already introduced in March following the court ruling of the ECJ. It is also expected that the French tax administration will soon respond to the non-residents who have already issued a claim," writes Loic Raboteau, French legal advisor, on the law firm's blog.

"So far, the tax administration has remained silent."