What is the best tax scheme for buying and exploiting real estate?

There is no better tax scheme in absolute terms.

The same property may justify on-line detention, an CIS, a company subject to the IS or a more elaborate structure depending on the nature of the operation, financing, expected revenues, length of detention and exit strategy.

The real expertise therefore consists of identify the schema that produces the best net result for a given project.

The choice of vehicle must be guided by the economy of the project

Nude rental, furnished rental, commercial operation, family holding or investment for resale do not meet the same tax logic.

In particular, the firm analyses the taxation of income, the possibilities of deduction or depreciation, the cost of financing, the flow of cash and the consequences of future disposal.

The objective is to compare pre-acquisition architectures, where room for manoeuvre is even greater.

The right diagram is the one that stays efficient until the output

A structure can be very effective for several years and then become expensive when resale or transmission takes place.

This is why the firm does not only reason about annual taxation. It models the different stages of the project in order to identify the performance gaps between several scenarios and to retain the organisation most consistent with the investor's objectives.

This approach avoids standardized arrangements and builds a truly tailor-made tax strategy.

Master Edouard Pruvost specializes in consulting on real estate tax strategy. The firm accompanies investors who wish to compare several holding and operating patterns in order to identify the best-performing solutions throughout the investment cycle. To have your project analysed and to benefit from tax strategy advice, contact the firm.