19 juin 2023

HOW TO INVEST IN REAL ESTATE IN FRANCE BY A NON RESIDENT / PATRICK MICHAUD

villa cote d azur.jpg
Patrick MICHAUD
AVOCAT
24 rue de MADRID 75008 PARIS 
National school of taxation - HEC CPA
patrickmichaud@orange.fr    33 '0)6 07269708
You are a non-resident and you wish to invest in France by buying a property or a villa, either with a financial objective of profitability, or with an objective of pleasure for you and your family.  

Real estate is subject to a range of taxes in France be it during acquisition with registration fees, annually with property tax, wealth tax and income tax or capital gains tax. Finally, a transfer to the next generation will likely result in the payment of inheritance or gift taxes.

For these reasons it is essential, before an acquisition, to pay particular attention to how the purchase should be structured.

I can give informations to your legal advisor

The choice of form and financing is very wide. 

your investment can be made
-in your own name with or not your wife or husband
-through a French company, such as a societe civile immobiliere -in my opinion the best way, or 
- a foreign company or a trust
 
 your advisor can contact me to find out
about the tax implications. 
 
 1st Recommandation
 
France, like almost all other countries, imposes total transparency on the final beneficiaries, both fiscally and financially.
 
In particular, banks and notaries have a strong duty of vigilance regarding the origin of funds and the beneficial owner of the property. 
 
It is no longer possible to make an investment without disclosing the identity of the final owners 
 
Failing this, there is a 3% tax on the property's market value - without deducting loans - payable annually. 
 
 
Your advice should take into account 
 
 A Taxation of income in kind in the case of free occupancy 
 
 
 
 
 
 
 
 please note that the tax residence for inheritance tax purposes is usually different from that stipulated in income tax treaties.
 

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