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Residents and non-residents eligible for refund of social security contributions

The Conseil d’État ruling of 27 July 2015 on the de Ruyter case, following the judgment of 26 February 2015 by the Court of Justice of the European Union, has called into question the levying of social security contributions on capital income arising in France of individuals insured under a social security scheme in another Member State of the European Union (EU) or the European Economic Area (EEA) or in Switzerland, since the proceeds of these levies are intended to fund benefits to which only individuals insured under the French social security scheme are entitled.

It is therefore possible to appeal against such levies subject to the conditions set out below.

These rulings apply to individuals insured under a social security scheme in Switzerland or an EU or EEA country other than France:
– For individuals domiciled in France: Social security contributions on all capital income taxable in France (investment income and income from assets) that are allocated to the budget for social security agencies;
– For individuals domiciled outside France: Social security contributions on income from real property in France (including capital gains) that are allocated to the budget for social security agencies.

It should be noted that the 2% solidarity levy payable prior to 1 January 2015 is not affected by the de Ruyter ruling inasmuch as it does not fund any branches of social security. Consequently, it cannot be refunded