As a non-resident, am I liable for social security contributions and the social levy ?

For non-residents of France for tax purposes, these levies apply to French-source real property income and capital gains.

Since 1 January 2019, individuals affiliated to a compulsory social security scheme (other than French) in an EEA country (European Union, Iceland, Norway and Liechtenstein) or Switzerland are exempt from the CSG (General Social Security Contribution) and CRDS (Social Security Debt Repayment Contribution). Although the United Kingdom left the European Union on January 1, 2021, British residents continue to benefit from this exemption.

However, these earnings remain subject to the 7.5% solidarity levy.

Employees of the central government, local authorities and public hospitals who are posted abroad are still liable for all social security contributions on income from assets and similar income provided that they satisfy the conditions for French tax resident status.

For more information, please refer to our Q&A: "Tax treatment for employees of the central government, local authorities and public hospitals posted abroad"

To benefit from the CSG/CRDS exemption

Fill in your tax return

To claim this exemption, you need to tick boxes 8SH (taxpayer 1) and/or 8SI (taxpayer 2) in section "8 - Miscellaneous" of return no. 2042 C.

If you are married or in a civil partnership and only one of the two spouses meets the conditions for exemption, you must indicate the following:

- For property income subject to simplified tax regime (“régime micro-foncier”) or purchased life annuities, the amount of taxable income after deduction of the applicable allowance

- For investment income, only income not subject to social security contributions by the paying institution

- Income from non-professional furnished accommodation rentals and long-term business capital gains declared on form 2042 C Pro are automatically exempt

- Long-term business capital gains (to be declared in Annex 2042 C Pro)

Please note : affiliation must be effective on 31 December of the year in which the income was received or earned. For tax-deferred capital gains (Art. 150-0 B ter of the French General Tax Code), affiliation is assessed on the date the capital gain is earned.

If you have not completed your tax return, you should file an adjustment request

You can submit this request via the secure messaging system in your personal account or by post to the Service des Impôts des Particuliers Non-Résidents (SIPNR).

You must enclose all the necessary supporting documents (proof of affiliation, the tax notice that includes the social security deductions for which a refund is being requested).

In all cases, submitting a request via the secure messaging system will ensure that it is received by the relevant department. There is no need to follow up with the DINR.

You should be aware, however, that despite a recent reorganisation, high case volumes may result in longer processing times.

Note : Social security contributions levied by other bodies on professional income (wages, pensions, annuities, etc.) may concern individuals residing abroad. These contributions are not covered by the General Tax Code, but rather by the Social Security Code. Please address your claim directly to the organisations that have made these deductions (employer, pension fund, etc.). They will deal with your request or transfer it to the collection organisation if necessary.

UPDATED DINR PART – JULY 19, 2023