France Administrative Court of Appeal Clarifies Capital Gains Taxation on Real Estate for Nonresident Companies

The French Administrative Court of Appeal of Paris May 29 issued Decision No. 25PA01836, clarifying the capital gains taxation on real estate for nonresident companies. The taxpayer, a Danish company, sought relief from additional corporate tax and penalties in relation to the sale of French real estate, arguing that the capital gain should be computed using a 2008 revalued property value rather than the original acquisition cost. On appeal, the Administrative Court of Appeal of Paris found that: 1) the taxpayer could rely on the revalued value to compute the capital gain, even if the revaluation wasn’t previously taxed; 2) ...