This article is for general information only. You should not act or refrain from acting in reliance of it. You should always obtain professional advice on the facts of your particular case. Nothing in this article constitutes financial advice. The owner of this site accepts no liability.

 

Buyers of French property usually consider whether they should use an SCI (a property company) to own the property rather than owning in their own names. There are a number of factors to consider though an important one applies to higher value property which will be the owners main residence.

 

The French courts have decided that the reduction of 30% of the value of a main residence for Wealth Tax only applies if the property is owned directly. If the property is owned via an SCI then the 30% reduction does not apply.

 

This will not be a factor for lower value properties or properties which will be holiday homes and never occupied as a main residence. However if you intend occupying now or in the future as your main residence it is an important factor.

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