There are various forms of property ownership in France, each having different tax and legal implications for owners.

Many people who buy French property probably never give too much consideration to the legal form of ownership it should take.

However, there are different forms of ownership of property in France, and the choice you make may be a factor that needs to be considered in relation to tax and inheritance planning.

Where multiple owners are buying, it is also important to consider the management arrangements for the property, which will be affected by the form of ownership that is used.

Most people who buy French property do so ‘en indivision’, a form of ownership in which a number of people have a share of the rights to the property. It is simple, and is suitable for most married couples and civil partners. However, due to inheritance rules, it may not be suitable for those with children from a previous marriage.

Ownership 'en tontine' is used by those who want to ensure that the rights of the surviving partner or spouse are protected on first death, although for married couples a French marriage contract would achieve the same objective.

An French property company, called a Société civile immobilière (SCI), is frequently used by those buyers who are unrelated, or where an extended family buys a property.

Once you have purchased the property then it is possible later to divide the ownership structure of the property between the reversionary interest and the current life interest - the 'nue-propriété' and the ‘usufruit’ .

This may be carried out with your descendants as part of your inheritance planning, or with a third party to generate capital and income.

This would then leave you as the usufruit owner, having rights of occupation until your death, with the reversionary interest of the property held by a nue-propriété owner.

With recent changes in the law in France, it is also now possible to create trust structures to hold property, but doing so does not confer any tax advantage. There is also a complexity about them that you would probably be well advised to avoid if you can!

Needless to say, in the consideration of these options you need to take good professional advice.