Ruling by the Court of Cassation on SCI entities and the Franco-Luxembourg tax treaty

The Court of Cassation has ruled that shares in real estate investment companies (SCIs) with their registered offices in France and owning real estate in France are considered real estate for the purposes of the Franco-Luxembourgish Convention of April 1, 1958. These shares are therefore subject to the wealth tax (ISF).

Taxpayers who filed a wealth tax return listing their shares in a real estate investment company (SCI) and subsequently sought a refund of that tax have had their appeals denied.

Commercial Court of Cassation, April 2, 2025, No. 23-14.568, Unpublished