Sales by non-residents of property in France. Does a tax representative have to be appointed? If so, who may be appointed and vis-à-vis which department does he act ?

The sale by a non-resident of property in France requires the appointment of a tax representative, except under the scenarios for dispensation set out below.

Dispensation

Three situations allow for automatic dispensation from appointing a tax representative:

• When the seller lives, is based or is incorporated in an EU Member State or in another country party to the Agreement on the European Economic Area (EEA) which has signed a mutual administrative assistance agreement with France (Iceland and Norway)

• For sales of €150,000 or less. This upper limit is assessed for each seller.

• For sales allowing for capital gains exemption both in terms of income tax and social levies owing to the duration of ownership of the property (22 years for income tax and 30 years for social levies)

Capacity of tax representative

The following may be tax representatives:

• A company or organisation already permanently accredited by the tax authorities

• Banks and credit institutions carrying on their business activity in France

• The buyer of the property if he is resident of France for tax purposes

• Or any other person who is resident of France for tax purposes, except notaries and lawyers. In the latter category, the representative must be accredited by the tax authorities.

Departments tasked with processing applications for the appointment of an accredited representative

Accreditation may be applied for from the département or regional public finances directorate having jurisdiction over the location of the property or the registered office of the company investing predominantly in property (sale of shares).

Particular cases:

• When the property is located in Paris, accreditation must be applied for from the Ile-de-France Regional Public Finances Directorate (département de Paris - Missions foncières, 6, rue Paganini, 75020 Paris, Tel: +33 1-53-27-46-45).

• When the registered office of the company investing predominantly in property (sale of shares, stock or rights) is located abroad, accreditation must be applied for from the DINR (Directorate for non resident tax) 10 rue du Centre, 93465 Noisy-le-Grand Cedex.

Updated DINR PRO