The derogatory regime provided for by

This decision provides important insight into your property law. Here is what it changes for you.

The situation

The derogatory regime provided for by Article 710 of the General Tax Code, independent of that provided for by Article 1115 of the same Code in favour of property dealers, is not applicable as of right; therefore, a court correctly holds that a property dealer who, upon acquisition of a building, did not enter into the undertaking not to use it for any purpose other than residential use for three years, cannot benefit from the regime provided for by Article 710; the doctrine formally accepted by the tax authorities, when invoked by the taxpayer, must be interpreted as authorising the declaration of the undertaking by a separate instrument within the limits provided for by the administrative instructions in question, that is to say, within the time limit for lodging a claim running from the acquisition instrument. It follows that a court rightly dismisses a taxpayer's claim to benefit from the regime provided for by Article 710 of the General Tax Code, after having found that the undertaking provided for by that text, which had not been entered into at the time of acquisition, had been entered into after the expiry of the period during which the omission could be remedied.

What the law says

This decision confirms the fundamental principles of property law.

Key points

• Strictly comply with the statutory time limits for appeals
• Keep all your supporting documents (deeds, instruments, letters)
• Be proactive: preventive advice always costs less than litigation

For an analysis of your situation: 30-minute consultation at €45 with Maître Zakine.