In a recently published judgment, the Administrative Tribunal of Paris has judged that a resident of Switzerland should pay the same income tax rate on capital gains upon the sale of French real estate as a French resident, because of the specific wording of the France Switzerland tax treaty.
Up till now Swiss tax residents, that own the property directly or through a transparent S.C.I. are treated as non-EU residents and pay 33,33% withholding tax on capital gains whereas French tax residents only pay 16%.
Even though the Supreme Court has not yet confirmed this judgment it is possible and advisable to already introduce a claim in order to get back the difference from the French tax authorities, (i.e. 17,33% of the taxable gain).
In case they refuse the case can be brought before the Courts.
Please note however that in France, in principle, only a limited period is available to introduce such a claim. Claims in respect of the tax year 2008 must be claimed at the latest December 31st, 2010.
We remain at your disposal to analyze your specific situation and to assist you in this matter.
