About Purchasing a French Residence
Purchasing a residence in France can be
a unique experience, unlike its counterpart in the U.S. or
the U. K. A French Notaire is normally involved. Documents
such as the "offre d'achat", "promesse d'achat", "promesse
de vente", and "acte de vente" need to be understood
and used to your best advantage. The classic form of holding
company, known as the "SCI", may offer attractive
tax and estate planning advantages. This area is fraught with
potential pitfalls, and the need for professional assistance
is particularly important. We have advised many foreigners
in this area, as to legal aspects, as well as tax and estate
planning implications in France and the U.S.
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Legal Steps
- We explain the procedure of purchasing
property in France, from the initial purchase offer to the
closing of the deal.
- We help negotiate the purchase price.
- We help create an ownership structure
to gain tax benefits and other benefits.
- We help you to choose the right Notaire.
- We review legal documents related to
the purchase or sale of French real estate.
- We liaise with your Notaire throughout
the period of purchase.
- We help you to obtain property title
insurance.
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French Tax and Property Rules
- We explain how French rental income is taxed in France
and the U.S. and prepare appropriate tax returns to report
rental profits.
- We help you to understand the French wealth tax implications
of owning French real estate.
- We explain the French and U.S. capital gains rules on sale
of real estate.
- We explain what if any effect owning real estate in France
has on tax resident status.
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Structuring Ownership
- We explore whether you should own French real estate directly
or through a holding company.
- If a holding company is desirable, we explain how to avoid
the annual 3% French tax.
- We help with the estate planning issues of real estate
ownership.
- We help with the special problems of setting up a Bed & Breakfast.
- We help with other special uses of real estate in France.
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Income Tax Issues
- We advise on the income tax issues of owning French real
estate.
- We prepare resident and non-resident income tax returns
related to rental real estate in France.
- We prepare the appropriate tax form to report corporate
ownership of real estate to avoid the 3% annual tax.
- We assist with French tax audits related to real estate
holdings.
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Estate Planning Issues
- We advise on estate planning issues for residents of France
who own French real estate.
- We advise on estate planning issue for non-residents of
France owning French real estate.
- We explain the French "forced heirship" rules
and show how they may affect your already-existing estate
plan, and advise how their impact may be avoided in some
cases.
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Selling French Real Estate
- We explain the capital gains rules in France related to
the sale of real estate by residents and non-residents.
- We determine if the sale may qualify for tax free treatment
in France, or how taxable gain can be minimized.
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