To maximise your confort, the website is
designed to be used vertically!
Many French people dream of owning their own property! Investing in real estate offers a solid investment with a tangible, habitable result. In addition, the purchase of real estate is facilitated by numerous financial incentives. What do you need to know before buying a second home? What systems exist to help rental investment in the mountains?
Cimalpes advises you in all aspects of real estate taxation: SCI regulations, the PINEL system, taxes related to housing. to facilitate all your real estate projects and help you to ensure that each of your mountain investments bears fruit.
France is one of the most popular tourist destinations. It is also very attractive to non-resident real estate investors. Nevertheless, the administrative, legal and fiscal aspects represent concerns to foreign investors.
Our goal is to advise you and accompany you throughout your project on these points.
When you purchase a property, there are several steps:
Concerning the notary fees, only the purchaser is liable. The total cost represents approximately 7 % of the purchase price
Only the buyer is subject to notary fees. These, coupled with registration fees (also called transfer duties), amount to, on average, 7% of the overall selling price of the property.
In the context of new real estate, it is possible to benefit from reduced notary fees in comparison with older properties. Notary fees represent only 2 to 3% of the sale price for a house, chalet, or apartment that is new or less than 5 years old.
Under the umbrella heading of “notary fees”, we can in fact find a set of fees that consist of:
According to the General Tax Code, real estate VAT applies to building land sold by a professional, to buildings for sale, to certain collective social housing, and to new and off-plan properties. In VEFA (sale in the future state of completion), it is to be paid over the collection of the total purchase price. In some cases, this amount is recoverable.
From January 2021 until 2024, the PINEL system is reserved for investments made in collective residential buildings. It facilitates the acquisition of new, off-plan or old apartments to be completely rehabilitated, and focuses on areas where the real estate supply has the highest demand
zone A, A bis et B1 OF THE TERRITORY
French households are thus entitled to a tax reduction of up to €300,000 per year, with a limit of €5,500 per m².
This system facilitates rental investments by both individuals and SCIs. However, it is subject to many conditions:
An SCI (for Société Civile Immobilière) is an attractive solution for acquiring real estate as a group. Each contributor will receive shares that are proportional to their investment.
This structure also facilitates the transmission of assets, as its members can transfer shares to each other. An SCI also provides an allowance in the event of resale of the property or donation to an heir.
It may be subject to income tax (IR) or corporation tax (IS). This last option will make it possible to deduct certain charges and depreciation, such as work carried out for the renovation of the accommodation or rental management costs, for example.
The status of a non-professional furnished rental company is a real estate tax exemption system. It is only accessible to individuals who rent furnished accommodation for short periods subject to a particular set of conditions:
As a non-professional furnished rental company, if your rental income is greater than €72,500, you will be taxed under the simplified scheme. Under this scheme, many expenses such as renovation and insurance costs are tax deductible.
Below this threshold, it is preferable to opt for the micro-BIC scheme, unless you are undertaking work on the rental accommodation. Indeed, the micro-BIC scheme entitles you to a tax reduction of 50% on taxable income from a furnished rental (71% for income from tourism real estate).
When you rent a good during the season, two plans are applicable: the flat-rate plan and the actual plan. The profits are taxed:
The taxation of the real estate capital gain is determined as follows:
The tax rates are as follows:
Transferring your assets
The law that applies is the law of the last place of residence of the deceased
Unless the deceased has stipulated in a will, that the applicable law must be that of the country of which he/she holds the nationality. French law states that it is not possible to disinherit your children (principle of "hereditary reserve")
The inheritance tax: