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FRELA offers tax advisory services for structuring your private wealth during your real estate purchases.

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

FRELA can assist you in structuring your private wealth.

Given the complexity of French legal and tax regulations, FRELA provides comprehensive support in personal taxation and private wealth taxation specifically tailored to your acquisitions or investments in France.

Entrust your high-end real estate acquisition project to one of our mandate lawyers to receive experienced and knowledgeable advice, ensuring the legal security of your real estate acquisitions in France and optimizing your tax planning.

We provide assistance in tax law for structuring your private wealth for your real estate acquisition projects:

Firstly, we conduct an analysis of the legal and tax situation of your wealth.

Analysis of individual tax situation: FRELA real estate lawyers help you analyze the tax situation of the relevant individuals, such as shareholders, entrepreneurs, and executives.

Legal and tax analysis of current and prospective real estate assets: FRELA lawyers conduct a legal and tax analysis of your current assets as well as the property you plan to acquire.

Analysis of ownership structures and acquisition structure: FRELA real estate mandate lawyers advise you on the most appropriate acquisition structure to minimize the tax burden of the transaction. This may involve the creation of a company, partnership, or other form of entity for the acquisition.

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

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 corporate tax reduction.

Analysis and transfer of tax residency: When advantageous and based on the situation, we assess the best tax residency for you and assist you in formalizing, regularizing, and declaring your tax residency to the relevant authorities.

Analysis of estate planning mechanisms: FRELA lawyers assist you in analyzing, establishing, and optimizing your estate planning and donation mechanisms.

FRELA real estate transaction mandate lawyers provide advisory services in structuring private wealth during real estate acquisitions in France to optimize and secure the tax impact, tax benefits, and dispute management.

Tax Impact and Legal Structure

Structuring private wealth during real estate acquisitions in France can be done in various ways, depending on the buyer’s objectives and their wealth and tax situation. Firstly, FRELA lawyers can assist in structuring the real estate transaction to minimize the tax impact on the client’s wealth.

For example, we can advise on choosing the most suitable legal structure for the real estate acquisition, such as an REIT (Real Estate Investment Trust), SAS (Simplified Joint Stock Company), or SARL (Limited Liability Company).

Here are some common techniques for structuring private wealth during real estate acquisitions in France:

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

Joint Ownership (co-ownership): This technique involves purchasing a property with multiple individuals, with each person having a share of ownership. This solution can be advantageous in reducing acquisition costs and facilitating property management, but it may also pose challenges in case of disagreements among co-owners.

Creation of an REIT(Real estate Investment Trust): Establishing an REIT allows for the purchase of a property as a legal entity rather than as an individual. This solution can offer advantages in terms of wealth management, taxation, and estate planning.

Acquisition through a Commercial Company: Purchasing real estate through a commercial company can be a tax-efficient solution for real estate investors.

Acquisition of Bare Ownership (Nue-propriété): This technique involves acquiring only the bare ownership of a property, which means owning the property without the right to use and enjoy it (usufruct). This solution can result in a reduced purchase price and lower tax costs.

Crossed Dismemberment: Crossed dismemberment allows two individuals to acquire a property by splitting the ownership rights between them.

Viager Purchase: A viager purchase involves acquiring a property in exchange for paying a life annuity to the current owner.

Utilization of Debt: Acquiring a property can be financed through debt, which reduces the portion of immobilized real estate in the overall wealth and provides tax advantages related to interest payments.

Implementation of an Estate Planning Strategy: The acquisition of real estate can be part of an overall estate planning strategy, utilizing mechanisms such as gifting or succession planning.

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

Tax Benefits

FRELA lawyers can also advise you on the various tax benefits you may be entitled to in the context of a real estate purchase.

For example, we can provide information on different tax credits available for energy renovation works or the various tax regimes applicable to furnished rentals. FRELA’s mandataire lawyers can also help optimize the tax declaration of your real estate assets, ensuring compliance with tax obligations and mitigating the risk of tax reassessment

Dispute Resolution

FRELA’s real estate lawyers can provide assistance in managing tax disputes in case of litigation with the tax authorities. We can also help negotiate agreements with tax authorities and draft international tax treaties in the case of properties located abroad.

FRELA’s real estate lawyers specializing in real estate transactions bring their expertise in tax law to assist in structuring private assets during real estate purchases in France. This expertise can help minimize the tax impact on assets, optimize tax declarations, and resolve tax disputes.

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