Choose SCI Incorporation, make substantial monetary savings in taxes.
Choose SCI Incorporations to minimise inheritance taxes and death duties on French property.
Family SCI Incorporation
Choose SCI Incorporations to purchase a French property as a group of friends, business colleagues to achieve high multiple mortgage funding for your French property purchase and for multiple tax benefits
Professional SCI Incorporation
The SCI, a company, is itself owned by shareholders, in most cases, family members – this can include minors – but they have minimal judicial powers. The shareholders can be resident or non-resident in France and there is no restriction as to nationality.
Advantages of a Family SCI
In terms of inheritance, the use of a Family SCI overcomes some of the disadvantages that France’s Napoleonic laws entail. French law dictates that upon the death of the home’s owner, the property is divided up between the surviving spouse and any children, this can include children from previous relationships. This can be potentially “uncomfortable” in extended family situations as French inheritance law is not flexible on the issue of existing heirs.
However, using a Family SCI and its shareholder status means that the parents can appoint themselves as majority shareholders and can make provision that upon the death of one or the other that his or her shares are passed onto the surviving spouse, therefore ensuring that the controlling share remains in the hands of the parent, and any decision regarding the property belongs to the partner of the deceased.
Where succession remains the issue, shares in a company are easier to distribute than immovable property, and so managing inheritance, and transferring the property, is simplified.
The shareholder structure means that it is easier to divide up shares, rather than splitting the ownership of a property.
As tax regimes are very individual it is important to take individual advice from your tax expert and to realise that the tax consequences of the purchase through a Family SCI should be analysed according to French law and the tax treaty between France and the home country before going ahead with any purchase.
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