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7. Business Premises in France

7.2. Buying Business Property in France

If you are going to buy a separate business premises you should consider doing so through the legal structure of a property company, called a Société Civile Immobilière (SCI), as it is possible to create some fiscal advantages from this approach.

An SCI may be used in tandem with another business, where the business property is held by an SCI to whom the business then pays a rental.

If the business property is purchased using a mortgage, the mortgage payments can be offset against the rental payments, thereby reducing (or eliminating altogether) liability to income tax by the SCI.

In turn the rental payments to the SCI reduce the tax liability of the business, provided the business has not adopted micro-entrepreneur tax status.

This practice in not uncommon, but, beware that an unreasonable rent is unlikely to be accepted by the French tax authorities.

You can read more about an SCI by visiting our pages SCI - French Property Management Company.

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