Question 7131 — treaties and conventions

Summary

Mr. Stéphane Vojetta draws the attention of the Minister of the Economy, Finance and Industrial and Digital Sovereignty to an unfavorable and legally problematic tax situation affecting many French people residing in Spain. Indeed, French people domiciled for tax purposes in Spain but receiving property income in France are subject to French taxation, in accordance with the bilateral tax convention. Franco-Spanish Act of October 10, 1995 (entry into force in 1997). However, this convention does not expressly provide for the taking into account of the solidarity tax on wealth income, currently levied at 7.5% for residents of the European Union, in the mechanism for eliminating double taxation. This shortcoming has the direct consequence that the Spanish tax administration does not recognize this tax as a tax covered by the convention, preventing any imputation or exemption from the tax due in Spain. This leads to an effective double taxation of around 7.5%, in contradiction with the European principles of tax coordination and avoidance of double taxation between Member States of the European Union. This system, introduced in 2012 in the form of social security contributions, was modified following the ruling of the CJEU (De Ruyter case, 2015), to be reallocated to solidarity funds financed by the State, thus allowing France to maintain this levy on non-residents affiliated to another European regime. However, this modification did not result in an update of the bilateral tax convention, leaving taxpayers in a vague and disadvantageous legal situation. He therefore asks him if the Government is considering a renegotiation of the Franco-Spanish tax convention in order to explicitly integrate this tax into the list of taxes covered and, in the short term, whether it can consider a bilateral exchange of interpretation with the Spanish tax administration, making it possible to avoid double taxation which strongly penalizes French people established in Spain.

Machine translation from French. The official text remains authoritative.

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