Administrative Court of Appeals of Paris decision – whether withholding tax on immovable property gains derived by non-residents compatible with treaty between France and Greece (non-discrimination) and EC law (freedom of establishment)

In a recently published decision, the Administrative Court of Appeals of Paris ruled on whether the 33 1/3% withholding tax levied on capital gains derived by non-residents on immovable property situated in France is compatible with the non-discrimination article set out in the France-Greece tax treaty of 21 August 1963 and with EC law (decision of 25 May 2007 No. 06PA01257). Details of the decision are summarized below.

(a) Legal background. Under Ar…