The key issues
SCI: income tax or corporate tax
Under income tax, income is taxed in the shareholders’ hands; under corporate tax, the building can be depreciated but the capital gain is calculated differently. A choice to simulate over the whole holding period.
Furnished lettings
Under the actual regime, a furnished landlord can depreciate the property and furniture, which reduces the tax on rents. Capital gains rules and the move to professional status need close follow-up.
Property holding
Holding property through a company subject to corporate tax or a holding: rental income, financing, distributions. A structure to build with your advisers.
What we can take care of, à la carte
SCI and investments
- Review of the tax regime of an existing SCI
- Accounts, 2072 return or corporate tax return
- Depreciation schedule of the building under corporate tax
- Shareholder current accounts and allocation of profit
Furnished lettings
- LMNP / LMP actual regime: 2031 return and depreciation by component
- Comparison of micro and actual regimes, on request
- Works, loan interest, losses
Capital gains and sales
- Professional capital gains on furnished lettings
- Capital gains on the sale by a company under corporate tax
Your goals, our answers
“I want to choose between income tax and corporate tax for my SCI”
On request, we simulate both regimes over your expected holding period: tax on rents, cash, tax on resale.
“I want my furnished let under the actual regime”
We prepare the depreciation schedule and the 2031 return, and check your status, non-professional or professional.
“I want to prepare the sale of a property”
On request, an estimate of the tax on the capital gain depending on how the property is held, together with your notary.
The forecasts, cash-flow plans, dashboards, simulations, studies and analyses mentioned above are additional engagements, provided on request and quoted in advance in your engagement letter: the more frequent they are, the higher their cost.
Frequently asked questions
I live abroad: can I own French property through an SCI?
Yes. Non-residents can hold shares in an SCI; French rental income is taxable in France, and your situation in your country of residence must also be looked at.
What is the non-professional furnished landlord status (LMNP)?
The regime for furnished lettings when the conditions of professional status are not met. Income falls under industrial and commercial profits, with a choice between the micro and actual regimes.
When does one become a professional furnished landlord (LMP)?
When receipts exceed €23,000 a year and exceed the household’s other earned income. The social and tax consequences are significant.
How are property capital gains taxed?
The regime differs depending on whether the property is held directly, through an SCI under income tax, a company under corporate tax or as a furnished letting.
I live abroad: do I file returns in France?
Rental income from French property is generally taxable in France, whatever your country of residence; tax treaties then aim to avoid double taxation. Your adviser in your country of residence should also be consulted.