Francetaxlaw

28/05/2026

💼 Structuring Business Interests in France

If you are setting up or managing a business in France, understanding the legal and tax framework is essential from the outset. French business structures come with specific compliance, reporting, and ownership requirements that need to be carefully considered.

Our business law services support clients with:

• Choosing the right legal structure for your activities
• Understanding ongoing compliance and filing obligations
• Navigating cross-border tax and legal considerations
• Supporting business setup and restructuring in France
• Advising on ownership and succession planning for business assets

Whether you are expanding into France or reviewing an existing structure, getting the right advice early can help you avoid issues later on.

👉 Explore our business services to learn more about how we can help - https://www.francetaxlaw.com/french-legal-services/business-in-france/

25/05/2026

💡 Reviewing your exposure to French Wealth Tax (IFI) early can help avoid surprises

French Wealth Tax (IFI) applies to certain individuals with significant real estate holdings in France or, in some cases, internationally depending on residency status. Understanding whether you fall within scope is not always straightforward, particularly where property is held through different structures.

Taking time to assess your position early in the year can help you prepare more effectively, especially when it comes to:

• Identifying which property assets may be included in the IFI calculation
• Ensuring valuations are accurate and up to date
• Understanding how ownership structures may impact liability
• Preparing for reporting and declaration requirements in advance

Early review helps reduce uncertainty and makes compliance easier when deadlines approach.

24/05/2026

21/05/2026

🏡 Thinking of Buying Property in France as a Foreigner? Start Here

Buying property in France is an exciting step, whether it is for relocation, investment, or a second home. The good news is that foreign buyers are generally able to purchase property without restrictions, but the process is very different from the UK.

There are several legal, financial and administrative considerations to be aware of before making an offer, especially when it comes to contracts, due diligence, and tax implications.

Our latest guide explains:

• How the French property buying process works from start to finish
• What contracts are involved, including preliminary agreements
• The role of the notaire in property transactions
• Key costs and taxes to factor into your budget
• Important considerations for non-residents and UK buyers

👉 Find out what you need to know before getting started - https://www.francetaxlaw.com/news/buying-property-in-france-as-a-foreigner/

18/05/2026

📄 When You May Need to Declare a Trust to French Authorities

Certain trusts with a connection to France may need to be declared to the French tax authorities, depending on their structure and the individuals or assets involved.

This can apply where there are French-situated assets, French-resident beneficiaries, or other links that bring the trust within the scope of French reporting obligations. In some cases, annual reporting may also be required to ensure ongoing compliance.

Because the rules can be complex and depend heavily on individual circumstances, it is important to assess early whether a trust falls within the French reporting framework.

14/05/2026

Living in France? It helps to understand how the legal system is structured ⚖️

Understanding how the French legal system works is essential for anyone living in France. It operates very differently from the UK system, particularly in how laws are written, interpreted and applied.

Our latest blog explores the key differences, including:

• How the French civil law system differs from UK common law
• The role of codified laws and legal codes in France
• How courts and judges operate under an inquisitorial system
• Key differences in legal procedures and decision-making

👉 Read the full guide to understand how the French legal system works and what it means for you:

https://www.francetaxlaw.com/news/french-legal-systems-explained/

11/05/2026

Transfer of shares in a French civil company (SCI): what changes on the 6th May 2026
Decree no. 2026‑340 simplifies the formalities:

End of the requirement to file the transfer deed with the RCS: only the updated articles of association now need to be filed.

If the company fails to act, the transferor or transferee may file a protective (conservatory) submission to make the transfer enforceable against third parties while awaiting the official filing of the updated articles.

11/05/2026

💡 When French Wealth Tax (IFI) May Apply to Property Owners

French Wealth Tax, known as IFI (Impôt sur la Fortune Immobilière), may apply to individuals who hold significant real estate assets in France or, in some cases, worldwide depending on their residency status.

It generally becomes relevant when net property assets exceed the €1.3 million threshold. This includes property held directly or through certain structures, and it can apply differently depending on whether someone is tax resident in France or based abroad.

Understanding how your assets are assessed under IFI rules is important for ensuring accurate reporting and staying compliant with French tax obligations.

07/05/2026

Renting out your second home on Airbnb when it’s owned by an SCI taxed under the IR regime: a real tax trap

Renting your holiday home for a few weeks in the summer seems harmless. But if the property is owned by an SCI taxed under the income tax (IR) regime, it can trigger a major tax shock.

Two decisions from the Toulouse Administrative Court of Appeal (29 January 2026) make this point very clear.

1. Just a few weeks of rental… and the SCI is pushed into corporate tax
In the case examined, the SCI rented out its second home:

3 weeks in 2017,

6 weeks in 2018, via Abritel.

The rest of the year, the partners used the property for free.

For the Court, even a few weeks per year are enough to consider that the SCI is carrying out habitual furnished letting.
The consequences:

➡️ The SCI becomes automatically subject to corporate tax (IS), retroactively.
➡️ No threshold, no tolerance: the law sets no minimum duration or income.

2. Second penalty: the partners are taxed on their own personal use of the property because the partners occupied the house for free the rest of the year, the Court considered that they received a hidden benefit.

In practice:

➡️ The rental value of the periods of personal occupation is treated as distributed income.
➡️ The partners must pay income tax plus social contributions on that amount.

To avoid this, the SCI would have had to charge rent to its own partners for every night spent in the house — something almost no one does.

3. Double taxation
The combined effect of the two adjustments is:

Corporate tax (IS) for the SCI on the actual rental income,

Income tax + social contributions for the partners on the rental value of their personal use.

A fully legal double penalty.

4. The key takeaway
👉 An SCI taxed under the IR regime should never engage in furnished letting, even for a few weeks a year.
The risk of requalification is total, automatic, and extremely costly.