Choosing a Legal Structure when Purchasing
Property investment in France offers a multitude of attractive opportunities, but choosing the right legal structure for your acquisition can have a significant impact on your management and taxation.
Whether you're an individual investor or planning to join forces with others, it's essential to understand the options available so you can make an informed decision.
The family SARL
For family investors, the SARL de famille can be an interesting solution. This commercial company also offers tax transparency, but as with the SCI, it is important to note that this transparency may not be recognized abroad. The SARL de famille is particularly well suited to furnished rentals, making it an attractive choice for some investors.
The non-trading property company
The non-trading property company is a popular option for managing property assets owned by several people. It offers a fiscally transparent structure, meaning that profits are taxed at shareholder level. However, it is crucial to note that this tax transparency is not always recognized abroad. What's more, the non-trading property company is best suited to private use of the property, and is not ideal for furnished rentals.
Acquisition in your own name
Opting for a proprietary acquisition offers the advantage of simplicity and flexibility. This approach is widely understood internationally, making it an attractive choice for many investors. However, if you have several undivided owners, it's important to note that decisions must be taken unanimously, which can sometimes be a source of conflict.
Foreign companies
Finally, investors can also consider foreign-registered companies for their real estate investment in France. However, it is crucial to note that these companies are often considered fiscally opaque in France, which can lead to numerous reporting obligations and tax implications. In addition, if the property is used for private purposes, it may be necessary to declare a benefit in kind in the form of rent.
Conclusion
In conclusion, the choice of legal structure for your real estate investment in France will depend on many factors, including the number of investors, their family ties, the purpose of the investment and the investor's country of tax residence. It is advisable to consult an expert in real estate or tax law to help you make the best decision for your specific situation.
For more information and personalized advice on real estate investment in France, don't hesitate to contact our team of experts who are here to guide you every step of the way.
