FRELA offers tax advisory services for the tax structuring of your acquisitions in France.

Are you planning to purchase a high-end real estate property?

FRELA can assist you in structuring your purchase from a tax perspective.

Given the complexity of French legal and tax regulations, FRELA offers a comprehensive service in tax structuring, specifically tailored to your acquisitions or investments in France.

Entrust your high-end real estate acquisition project to one of our attorney agents to receive experienced and informed advice, ensuring the legal security of your real estate acquisitions in France and optimizing your tax situation

FRELA’s real estate lawyers provide tax advisory services for the tax structuring of high-end real estate acquisitions in France, aiming to optimize and secure the tax impact, tax benefits, and dispute management.

Initially, our real estate lawyers will conduct an analysis of the legal and tax situation.

Individual tax situation analysis: FRELA’s attorney agents assist in analyzing the tax situation of relevant individuals, including shareholders, entrepreneurs, and executives.

Legal and tax analysis of the real estate properties to be acquired: FRELA’s attorneys perform a legal and tax analysis of the property you plan to purchase.

Acquisition structure analysis: real estate lawyers provide advice on the most appropriate acquisition structure to minimize the tax burden of the transaction. This may involve creating a company, partnership, or other forms of entities for the acquisition.

Transaction tax analysis: FRELA’s real estate lawyers conduct a tax analysis of the transaction to determine the tax implications of the acquisition. This analysis may include examining the tax impact of the acquisition on the entities involved, the tax consequences of the purchase, and ways to minimize the associated tax costs.

Tax planning analysis and implementation: We assist you in tax planning by proposing strategies to reduce the tax burden of the transaction, such as capital gains, tax deferral and reduction of corporate tax.

Analysis and transfer of tax residence: Depending on the situation, we evaluate any impact of transferring tax residence and assist you in formalizing, regularizing, and declaring your situation to the relevant authorities.

Analysis of estate transfer mechanisms: FRELA’s attorneys assist you in analyzing, implementing, and optimizing your estate transfer and donation mechanisms.

FRELA’s real estate lawyer can guide you in choosing the most appropriate structures for your situation in terms of tax impact and legal structure.

Tax impact and legal structure

Tax structuring for real estate acquisitions in France can be done in various ways, depending on the buyer’s objectives and their financial and tax situation.

FRELA’s attorneys can assist in structuring the real estate transaction to minimize the tax impact on the client’s assets. For example, we can advise you on the most suitable legal structure for the purchase of the property, such as an REIT (Real estate Investment Trust), SAS (Simplified Joint Stock Company), or SARL (Limited Liability Company).

Here are some common tax structuring techniques for real estate acquisitions in France:

Purchase in personal name: Acquiring a property in one’s own name is the simplest and most common method for individuals.

Purchase in joint ownership: This technique involves purchasing a property with multiple individuals, with each person owning a share of the property. This solution can be advantageous in reducing purchase costs and facilitating property management, but it can also pose difficulties in case of disagreement among co-owners.

Creation of an REIT (Real Estate Investment Trust): Setting up an REIT allows for the acquisition of a property as a legal entity, rather than as an individual. This solution can offer advantages in terms of asset management, taxation, and estate transmission.

Purchase through a commercial entity: Purchasing through a commercial entity can be a tax advantageous solution for real estate investors.

Purchase in bare ownership: This technique involves acquiring a property while only obtaining the bare ownership, which means owning the property without the right to use and enjoy it (usufruct). This solution can allow for a reduced purchase price and limited tax costs.

Purchase in cross-ownership: Cross-ownership allows two individuals to acquire a property by dividing ownership between them.

Purchase in viager: Viager allows for the acquisition of a property in exchange for the payment of a lifetime annuity to the current owner.

Utilizing debt: Financing the purchase of a property through borrowing can reduce the portion of immobilized assets and provide tax benefits related to loan interest.

Implementation of an estate transmission strategy: The acquisition of a property can be part of an estate transmission strategy, using mechanisms such as donations or succession.

It is important to note that the implementation of these private wealth structuring techniques should be done taking into account the tax and legal consequences of each option, with the support of appropriate professional guidance (notary, attorney, accountant, wealth advisor).

Tax benefits

FRELA can also provide advice on the various tax advantages you may be entitled to in relation to the purchase of real estate.

For example, we can inform you about the different tax credits available for energy renovation works, or the various tax regimes applicable to furnished rentals, the amortization of acquisition costs of real estate within the furnished rental tax regime, etc. FRELA’s mandataire avocats can also assist in optimizing the tax declaration of your real estate assets, ensuring compliance with tax obligations, and mitigating the risk of tax reassessment.

Dispute resolution

Lastly, FRELA real estate lawyers can provide assistance in handling tax disputes in the event of a conflict with the tax authorities. We can support you in negotiating agreements with the tax authorities and in drafting international tax conventions, particularly for real estate located abroad.

The real estate lawyers at FRELA bring expertise in tax law to the structuring of private assets during the acquisition of real estate in France. This expertise helps minimize the tax impact on your assets, optimize tax declarations, and resolve any potential tax disputes.

Contact us and share your real estate purchase project with us