FRELA supports businesses and professionals in conducting audits and implementing the tax regime for the acquisition structure.

Are you planning to buy real estate or a business?

Entrust the audit and implementation of the acquisition structure’s tax regime to competent and recognized acquisition lawyers.

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 acquisition lawyers for businesses and real estate will be an added advantage for you.

Both parties (buyers and sellers) will rely on the evaluation work and conclusions of audits, which are generally carried out by lawyers or other consulting firms. These audits help the parties determine a sale price and negotiate the terms and clauses of the sales contract.

Our support in audit and implementation of the acquisition structure’s tax regime:

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

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

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

Legal and tax analysis of the assets to be acquired: FRELA’s lawyers conduct a legal and tax analysis of the asset you plan to buy or sell.

Structure analysis: FRELA’s real estate attorneys provide advice on the most appropriate acquisition or sale structure to minimize the tax burden of the transaction. This may involve the creation of a company, partnership, or other forms of entities to carry out the acquisition.

Tax analysis of the transaction: FRELA’s real estate transactional 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 strategies 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 deferral and corporate tax reduction.

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

Transmission of devices analysis: FRELA’s lawyers assist you in analyzing, implementing, and optimizing your estate transmission and donation devices.

FRELA’s attorney representatives will advise you on the most suitable structures for your situation: Fiscal impact and legal structure.

Tax structuring during mergers/acquisitions in France can be carried out in various ways, depending on the buyer’s objectives and their financial and tax situation.

FRELA’s attorneys 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 appropriate 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 tax structuring in 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.

Purchase in joint ownership: This technique involves buying or selling a business to multiple individuals, assigning them a share of the property. This solution can be advantageous in reducing acquisition costs and facilitating property or business management, but it can also pose issues in case of disagreements among co-owners.

Creation of an REIT (Real Estate Investment Trust): Establishing an REIT allows the acquisition of a property as a legal entity rather than an individual. This solution can offer benefits in terms of asset management, taxation, and wealth transfer.

Purchase through a commercial entity: Acquiring through a commercial entity can be a tax advantageous solution for investors.

Acquisition in bare ownership: This technique involves acquiring only the bare ownership of a property, without the usufruct (right to use and enjoy the property). This solution can lead to a reduced purchase price and lower tax costs.

Purchase in cross-ownership (crossed usufruct): Cross-ownership allows multiple individuals to acquire a property by splitting the ownership rights among themselves.

Purchase in viager: Buying in viager involves acquiring a property by paying a life annuity to the current owner.

Utilization of debt: Purchasing a property can be financed through borrowing, reducing the portion of immobilized real estate assets and providing tax advantages related to interest payments.

Implementation of a succession strategy: Property acquisition can be part of a wealth succession strategy, utilizing mechanisms such as donations or succession planning.

It is important to note that implementing these structuring techniques should take into account the tax and legal consequences of each option, and benefit from appropriate professional guidance (notary, attorney, accountant, wealth advisor).

Tax benefits

FRELA’s attorneys 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 tax regimes applicable to furnished rentals. FRELA’s attorney representatives can also help optimize your asset’s tax declaration by ensuring compliance with tax obligations, and avoiding the risks of tax reassessment.

Dispute Resolution

Finally, FRELA’s real estate transactional lawyers can provide assistance in managing tax disputes in the event of a legal dispute with the tax authorities. We can also assist in negotiating agreements with tax authorities and drafting international tax treaties in the case of properties located abroad.

In summary, FRELA’s attorney representatives in real estate transactions can provide expertise in tax law for structuring private assets during the purchase of real estate in France. This expertise can help minimize the tax impact on assets, optimize tax declarations, and resolve tax disputes.

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