Buying serval properties in France as a foreigner

Creating a dedicated company

Advantages of creating a dedicated company

Creating a dedicated company for the purchase of multiple commercial properties in France can offer several advantages, including:

• Limited Liability: Creating a company can limit the liability of the owners. In the event of bankruptcy or litigation, only the assets of the company are at risk, which can protect the owners’ personal assets.
• Ease of Management: A company can facilitate the management of commercial real estate by providing a clear organizational structure. Decisions are made by the shareholders or executives of the company, which can make management more efficient and less prone to conflicts.
• Tax Benefits: Depending on the structure of the company, there may be tax advantages for the purchase and ownership of commercial real estate. Investors can benefit from lower tax rates or other tax incentives.

Disadvantages of creating a dedicated company

However, there are also disadvantages to creating a company for the purchase of commercial real estate, such as:

• Additional Costs: Creating a company can incur additional costs such as incorporation fees, administrative fees, and accounting fees. These costs must be taken into account when making a decision.
• Complexity: Creating and managing a company can be complex, especially for foreign investors. The rules and regulations in France may differ from those in the investor’s home country, which can make creating and managing the company more difficult.
• Limited Liability: While limited liability is an advantage for some, it can also be a disadvantage for others. Some investors prefer to be personally responsible for their assets, rather than placing them in a company.

 

Structuring your commercial real estate portfolio

Creating a real estate company in france

One of the first steps to structuring your commercial real estate portfolio in France is to create a real estate company in France. This can offer several advantages, including limited liability, ease of management, and tax benefits. A real estate company in France can also optimize taxation on real estate capital gains and estate transmission.

Checking international tax rules

It is also essential to check international tax rules before investing in commercial real estate in France as a foreigner. Tax laws vary from country to country, and it is important to understand the applicable taxes and fees in France and the investor’s home country.

Consulting a specialized lawyer

Finally, it is recommended to consult a lawyer specialized in real estate and corporate law in France to effectively structure your commercial real estate portfolio. A lawyer can provide personalized legal advice to minimize risks and optimize profits from your real estate investments in France.

 

Creating a holding

What is a holding?

A holding is a company that holds a majority stake in other companies. In the case of purchasing commercial real estate properties in France, the holding would be created to hold ownership of the properties. The properties would then be leased to a subsidiary that manages and operates the commercial real estate. The holding would therefore not be involved in the daily management of the properties, but would be the owner.

Limited liability

One of the main reasons to use a holding for the purchase of commercial real estate properties in France is limited liability. By creating a holding, owners can limit their liability in the event of bankruptcy or litigation. Only the assets of the holding would be at risk, which can protect the owners’ personal assets.

Tax benefits

Depending on the structure of the holding, there may be tax advantages for the purchase and ownership of commercial real estate properties in France. The holding may be able to optimize tax costs by using tax rules in force in France and in the owners’ home country.

Ease of Management

Using a holding can also facilitate the management of commercial real estate properties in France. Important decisions would be made by the leaders of the holding, which can make management more efficient and less prone to conflicts. Owners may also be able to focus their efforts on other aspects of their business, rather than on the daily management of the properties.

 

Creating a dedicated company for the purchase of multiple commercial real estate properties in France as a foreigner can offer advantages and disadvantages. Investors must take into account their long-term objectives, personal preferences, and financial situation before making a decision. It is recommended to consult a lawyer specialized in corporate and real estate law in France to obtain personalized legal advice before making any investment decisions.