The French Conseil d’Etat defines the shares of companies with a preponderance of real estate as real estate assets within the meaning of the Franco-Belgian tax treaty on income and capital gains tax. The Conseil d’Etatdeduces that the sale of shares of semi-transparent real estate non-trading companies with a preponderance of real estate assets in France by Belgian residents is taxable in France in accordance with Article 3 of the Franco-Belgian treaty.
To our knowledge,it is an unprecedented decision in opposition with the analysis developed by the French Cour de Cassation in the context of other gift tax treaties and succession tax treaties. This decision follows previous various disputes concerning shares in civil real estate companies in the Franco-Belgian context.
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