Brexit: what will be the tax treatment of real estate capital gains made in France by British residents ?

At midnight on January 31 2020, the United Kingdom officially withdrew from the European Union.

A transition period has therefore begun and should continue until December 31 2020 in order to draw the future relationship between the United Kingdom and Europe.

It is only at the end of this transition period that European Union law will cease to apply to the United Kingdom.

Two important aspects should be kept in mind during this transition period:

• The French tax authorities specified that UK tax residents selling a property in France will not be required to appoint a tax representative – mandatory for tax residents outside the EU and EEA under certain conditions – responsible for ensuring the accuracy of the declarations filed for the calculation of the taxable capital gain;
• UK residents will be able to continue to benefit from the reduced rate of 7.5% on social security contributions (+19% income tax) on the sale of a property in France – which is normally 17.2% – provided that they can prove that they are affiliated to the UK social security system and not affiliated to the compulsory French health regime.