08 July 2026 Tax: Real estate-rich companies under tax treaties

Tax: Real estate-rich companies under tax treaties — the Cour de cassation provides important clarification

In a sectional ruling published in the Bulletin (Commercial Chamber, 6 May 2026), the Commercial Chamber held that the concept of a real estate-rich company under a tax treaty must be interpreted by reference to domestic tax law — thereby aligning with, and perhaps even going beyond, the Conseil d’État’s Baartmans case law. This decision marks a shift in the Cour de cassation’s analysis, with an outcome that is arguably legitimate from an economic standpoint, but whose legal basis is open to debate.

Jean-Yves Charriau, partner, and Joseph Righenzi de Villers comment on this ruling in Droit fiscal No. 28, 9 July 2026, comment 265.

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