Buying and financing solution to buy a flat real estate in France

The Process

Taxes & Legal Fees

Buying through a company

French inheritance rules are rather complex and quite restrictive, particularly when it comes to real estate.

In certain cases it may be opportune to purchase property through a property investment partnership company such as : SCI (société civile immobilière), SARL (société à responsabilités limitées = limited liability company), SNC (société en nom commun), SAS (société par actions simplifiées)…etc.

Each case is unique with specific circumstances which require comprehensive analysis to determine whether a partnership is appropriate or not, if so, which type of partnership ? Advice should be taken from a French notary and / or an international tax adviser.

The possibility of requiring French property via a property investment partnership with a foreign entity (such as an American LLC or a Norvegian Stokholder) as shareholder is available provided the entity is a family owned asset company with no commercial activity.

Before starting any investment, optimisation of existing property holdings or estate planning project, it is advisable to contact one of BPI’s advisors in order to discuss the project which will enable the bank to coordinate with the designated notary and / or tax advisor when necessary.

	Setting up an SCI means you can avoid France’s inheritance rule. Instead, the law of the country in which you are resident at the time of death prevails. However, French tax law still applies, and so your heirs could be liable for French inheritance tax. Managing an SCI allows for a certain control to be maintained over the property. If your children are also implicated in the SCI, the survivor spouse would be able to retain control over the property to be inherited by the children.