How to tax a property acquisition?

The structure used in an acquisition of real estate conditions much of its future taxation.

On-line acquisition, SCI at income tax, SCI at corporate tax, commercial company or holding via holding: each scheme produces different effects on income, financing, deduction of expenses, cash flow and taxation of resale.

Compare montages before investing

Fiscally relevant structuring implies going beyond immediate taxation.

In particular, the proposed holding period, the level of debt, the planned work, the nature of the income, the cash flow needs and the disposal or transmission strategy should be included.

Depending on the investor profile, two legally related schemes can thus lead to very different tax levels over time.

Building a coherent tax architecture

The real challenge is to model several scenarios before acquisition in order to identify the one that offers the best balance between tax optimization, management flexibility and exit taxation.

In large transactions, structuring can also reveal levers for tax optimization, VAT recovery or optimisation of flows between different companies.

Master Édouard Pruvost specializes in tax strategy advice and assists investors, executives and entrepreneurs in designing and validating real estate tax structures. To compare the various possible packages and determine the tax strategy best suited to your acquisition, contact the firm to get personalized advice.