When you become the owner of a property in France, and even more so when you’re not a French tax resident, sooner or later you’re faced with the question of taxation and inheritance. This raises the question of choosing the appropriate structure to manage the rental property as a family, and there are several options, depending on the inheritance/tax angle you wish to pursue.
The choice of one option over another will depend on the objective pursued.
What are the purposes and conditions of each structure?
LMNP (non-professional furnished rental) let you earn additional income from real estate in a non-professional capacity.
To qualify for LMNP status, the property must be furnished, and the income generated must not exceed 23,000 euros per year, nor represent more than 50% of total income (unless you are a non-resident).
The family SARL allows you to make a profit while benefiting from lower taxes. This structure is particularly recommended if the financial risk is high, as the liability of the partners is limited to the amount of their contribution (the family SARL is first and foremost an SARL).
In addition to meeting the same requirements as a conventional SARL, it must be made up of partners who are directly related or collaterally related up to the second degree, or by marriage.
Finally, the family SCI is recommended for the purpose of preserving and passing on assets from generation to generation.
The company’s corporate purpose must be real estate (as with traditional SCIs), and it must be made up of family members up to the fourth degree.
Let’s take a step-by-step look at the conditions, advantages, and disadvantages of these different structures, which at first glance appear similar but in reality have many differences.
What are the main advantages of these structures?
– FROM A TAX PERSPECTIVE
Choice of taxation method