25 years of experience in real estate taxation
The keen interest of foreign – and particularly German – institutional investors in the French property market dates back to the end of the 1990s.
It was even more obvious in the 2000s. Although investment declined after the 2008 crisis, German institutional investors are still very active.
France also appeals to many foreign individuals who want to enjoy a holiday in Paris, on the French coast or in our mountain resorts.
Given our expertise in real estate taxation, we can intervene throughout the life of the property and ask you the right questions…
BEFORE THE ACQUISITION
How is your investment structured: direct investment or through a dedicated structure? Building acquisition or shares in a pre-existing company? Is it equity or debt financing?
If institutional investors are involved: which optimization schemes – such as the creation of a UCITS, Undertaking for Collective Real Estate Investment (OPCI, Organisme de Placement Collectif Immobilier) – are worth studying?
DURING THE ACQUISITION
In the case of a direct purchase, although the deeds of acquisition must be drawn up by a notary, a tax lawyer’s legal advice is often useful in guiding the investor, particularly when he/she is a foreigner.
DURING THE LIFE OF THE PROPERTY
The ownership of property in France triggers a wide variety of taxes: income tax or corporation tax, if the property is rented; besides other taxes when the owner reserves the right to use the property (property tax, housing tax, tax on property wealth, etc.). Some of these, such as the 3% tax on buildings held by legal entities, are even a unique feature of the French tax system.
We can assist you in managing these taxes.
AT THE TIME OF THE SALE
At the time of the negotiation, we act for the transfer and preparation of the capital gains tax returns. Indeed, a landowner, whether resident in France or not, will rarely escape capital gains tax (except for sales by an individual of his or her main residence).
EXAMPLES OF INTERVENTIONS
Assistance to numerous institutional investors (investment funds, banks and insurance companies) in connection with real estate investments in France
Identifying the most suitable investment vehicle, including the opportunities the OPCI (Organisme de Placement Collectif Immobilier) may open up for foreign investors
Tax management of the real estate portfolio, both in terms of taxation of current income financing and capital gains
Assistance to private investors in the acquisition of second homes or rental investments in France, at the time of acquisition (structuring of the investment, assistance in negotiations) and in the day-to-day management (taxation of rental income, IFI (Impôt sur la Fortune Immobilière), etc.)
Management of 3% tax issues for numerous investment funds and foreign investors, besides assistance by professional bodies in this area