Introduction: real estate taxation from an international perspective
France has traditionally been a favoured destination for numerous international real estate investors.
These investors can be both:
- institutional, such as pension funds or insurance companies; and
- wealthy individuals seeking to invest a part of their assets.
These investors will be subject to French taxation in respect of the income and capital gains arising from their real estate investments, and sometimes even simply on account of their holdings.
However, they may be tempted to reduce their French tax burden either to benefit from the tax regime applicable to them in their country of origin (which is often more favourable), or simply for the purposes of tax efficiency.
The types of onvestors and investments can be illustratuted as follows:
For these 2 categories of investors (institutional/companies and individuals) we will consider the taxation of both income and capital gains according to the investment structure chosen.
We will also look at the taxation linked to estates and their transfer, as well as the 3% tax, which is a tax intended to enable the French Tax Authorities (FTA) to monitor holdings of real estate investments by non-residents.