Buying Property in France: Individual Ownership
If you plan to buy property in France, have chosen a suitable option, and are approaching the signing of the preliminary contract, it is important to decide who will officially own the property.
There are several options for property ownership in France:
Purchase as an individual
Purchase through a French company (SCI – Société Civile Immobilière, a civil real estate ownership company)
Purchase through a Monaco company (SCI or SCP – Société Civile Professionnelle, a professional civil company)
Purchase through a foreign company
Each option has its own advantages and disadvantages.
Buying Property as an Individual
Property is purchased in the name of a specific person. If married, the property is automatically purchased jointly, and the transaction cannot proceed without both spouses signing, except in cases such as a prenuptial agreement dividing assets.
Advantages of purchasing as an individual:
No obligation to maintain company accounting or file company tax returns.
Government fees (so-called notary fees) are charged once, up to a maximum of 7% of the transaction price.
Taxes you pay:
Property tax (taxe foncière)
Residence tax (taxe d’habitation)
Wealth tax – this applies regardless of ownership type. When purchasing as an individual, it is possible to reduce wealth tax if financing the purchase with a bank loan.
Potential issues:
Undivided property: If there are multiple owners and one wishes to sell, only the entire property can be sold, not a part of it. This also affects inheritance: if there are multiple heirs, the property cannot be divided physically; it must either be sold or used jointly.
Rental income: If you rent out the property, you must declare income in your own name. The type of declaration and taxation depends on the rental amount and type (seasonal, long-term, furnished, or unfurnished). This can be straightforward or complex depending on proper setup.
Inheritance: Taxes depend on the duration of ownership and the age of heirs, ranging from 5% to 45%. Amounts up to €100,000 per direct line heir are exempt.
Gifts: Taxed similarly to inheritance, 5%–45% depending on circumstances.
Confidentiality:
There are no public lists of property owners in France. The only record exists with notaries and is not public. Naturally, all service bills for a villa will list the owner’s name.
If you want, I can continue and translate the sections about purchasing through SCI or companies in France/Monaco, keeping all technical details intact for an English-speaking client. Do you want me to do that next?
Предыдущая статья