Capital Gains Tax Owed by Foreign Partners of French SCIs on French Real Estate Sales: Is the 33 1/3% French Withholding Tax a Restriction on the Free Movement of Capital?

In this note, the author examines recent decisions of the French administrative courts, as well as one of the Supreme Administrative Court, that have decided in favour of the 16% reduced (as opposed to 33 1/3%) withholding tax rate applicable to capital gains on real estate sales by French SCIs held by non-EU partners.