FRELA assists businesses and professionals in tax law by providing guidance in the identification of the acquisition structure.

Are you planning to buy real estate or a business?

Entrust the tax identification of the acquisition structure of your project to competent and recognized lawyers specializing in acquisitions.

If you decide to purchase real estate or a business, you will need to negotiate and manage your project with tangible elements. Engaging the services of lawyers specializing in business and real estate acquisitions will be a valuable asset for you.

Both parties (buyers and sellers) will rely on the valuation work and audit conclusions typically conducted by lawyers or other consulting firms, which will assist the parties in setting a sale price and negotiating the terms and clauses of the sale agreement.

Our support in identifying the acquisition structure:

FRELA’s real estate transactional lawyers provide tax advisory services for identifying the tax structure of real estate and business acquisitions or sales in France, aiming to optimize and secure the tax impact, tax benefits, and dispute management.

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

Analysis of individual tax situation: FRELA’s lawyers assist you in conducting an analysis of the tax situation of the parties involved, including individuals, shareholders, entrepreneurs, and executives.

Legal and tax analysis of the properties to be acquired: FRELA’s lawyers provide a legal and tax analysis of the property you plan to buy or sell.

Structure analysis: FRELA’s real estate transactional lawyers advise you on the most appropriate acquisition or sale structure to minimize the tax burden of the transaction. This may involve establishing a company, a partnership, or another form of entity to carry out the acquisition.

Tax analysis of the transaction: FRELA’s real estate transactional 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 tax costs associated with the transaction.

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

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

Analysis of transmission schemes: FRELA’s lawyers assist you in analyzing, implementing, and optimizing your wealth transfer and gifting schemes.

FRELA’s appointed lawyers will advise you on the most suitable structures for your situation:

Tax impact and legal structure

Identifying the tax and legal structure for mergers/acquisitions in France can be approached in various ways, depending on the buyer’s objectives and their asset and tax situation.

FRELA’s lawyers can help structure the transaction to minimize the tax impact on the client’s assets. For example, we can provide advice on choosing the most suitable legal structure, such as an REIT (Real Estate Investment Trust), SJSC (Simplified Joint-Stock Company), or LLC (Limited Liability Company).

Here are some common techniques for identifying different types of structures for real estate and business acquisitions in France:

Purchase in personal name: Acquiring or selling a business in one’s own name is the simplest and most common method for individuals.
Joint ownership (co-ownership): This technique involves purchasing or selling a business to multiple individuals, allocating a share of the asset to each co-owner. This solution can be advantageous in reducing acquisition costs and facilitating asset or business management, but it may also pose challenges in case of disagreements between co-owners.
Creation of an REIT (Real Estate Investment Trust): Establishing an REIT allows the purchase of property as a legal entity rather than as an individual. This solution can offer benefits in terms of asset management, taxation, and estate planning.
Acquisition through a commercial company: Acquiring property through a commercial company can be a tax-efficient solution for investors.
Bare ownership acquisition: This technique involves purchasing the bare ownership of a property, meaning the ownership without the usufruct (the right to use and enjoy the property). This solution can provide a reduced purchase price and lower tax costs.
Crossed usufruct acquisition: Crossed usufruct acquisition allows individuals to acquire property by dividing the ownership rights among themselves.
Viager acquisition: Viager acquisition allows the purchase of property by paying a life annuity to the current owner.
Utilization of debt: Acquiring property can be financed through borrowing, reducing the immobilized portion of real estate assets and providing tax advantages related to interest payments.
Implementation of an estate planning strategy: Property acquisition can be part of an estate planning strategy, utilizing mechanisms such as donations or inheritance.

It is important to note that the identification of the acquisition structure should consider the tax and legal consequences of each option and benefit from appropriate professional guidance (notary, lawyer, accountant, wealth advisor).

Tax benefits

FRELA’s lawyers can also advise you on the various tax benefits you may be entitled to in relation to business mergers/acquisitions.

For example, we can provide information on the different tax credits available for energy renovation works or the various applicable tax regimes. FRELA’s appointed lawyers can also assist in optimizing your asset’s tax declaration, ensuring compliance with tax obligations, and avoiding the risk of tax reassessment.

Dispute resolution

Lastly, FRELA’s transactional attorneys 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 for properties located abroad.

In summary, FRELA’s transactional attorneys can provide expertise in tax law for the structuring of private assets during real estate purchases in France. This expertise can help minimize the tax impact on assets, optimize tax reporting, and resolve tax disputes.

Contact us and present your project of acquisition, merger, or sale of businesses or real estate.