Our sector expertise
Real Estate Chartered Accountant - SCI & LMNP
Real estate accounting specialist in Paris: SCI, LMNP, holding companies and property dealers. Tax and asset optimization. 24h quote.
Loading…
Real estate accounting specialist in Paris: SCI, LMNP, holding companies and property dealers. Tax and asset optimization. 24h quote.
A real estate chartered accountant has become an essential strategic partner for rental investors, property dealers and real estate portfolio holders in France. Whether you are a foreign investor buying your first Parisian apartment, an expat building a buy-to-let portfolio, or an international business owner structuring French property through a holding company, the right tax and accounting setup makes a dramatic difference to your after-tax returns.
In 2026, tax complexity increases with new rules on capital gains, LMNP depreciation reintegration, and tighter SCI structuring requirements. Hayot Expertise, based in Paris 8th (58 rue de Monceau), has been supporting real estate investors — SCI, LMNP, property dealers, foreign buyers — for over 10 years.
French property taxation is fundamentally different from UK, US or other systems. Key specificities that surprise foreign investors:
An SCI is a transparent civil property company used by families, business owners and investors to hold real estate collectively while avoiding indivision (joint ownership disputes). Key characteristics:
Any individual renting out furnished property (minimum legal furnishing standard required) with annual revenues below €23,000 OR below 50% of total household income qualifies as LMNP.
Under the BIC real regime (the recommended option), you can:
The depreciation typically eliminates taxable rental income for 15-25 years on a leveraged acquisition.
Property purchased for €450,000 (land €90,000 = 20%), rented furnished at €1,800/month
| Item | Annual amount |
|---|---|
| Rental income | €21,600 |
| Actual costs (interest, insurance, taxe foncière) | − €7,200 |
| Property depreciation (€360,000 / 30 years) | − €12,000 |
| Furniture depreciation (€10,000 / 7 years) | − €1,429 |
| Taxable result | €971 |
Without depreciation (micro-BIC at 50% flat allowance): €21,600 × 50% = €10,800 taxable. The annual tax saving reaches €3,000 to €5,000 depending on your marginal rate.
Since February 2025, accumulated depreciation is reintegrated into the capital gains calculation at sale:
Strategy response: consider transferring the property to an IS-registered SCI before sale — corporate disposals may be more tax-efficient depending on accumulated depreciation.
Before buying: we model the net after-tax return under each scenario (personal LMNP, SCI IR, SCI IS, furnished vs unfurnished) so you choose the optimal structure at the point of acquisition — the only time when the choice is truly free.
| Document | What it covers |
|---|---|
| 2031 BIC return + annexes | Income, expenses, depreciation schedule (LMNP real regime) |
| 2072 SCI return | SCI income allocated to each shareholder |
| 2042 C PRO | Integration of LMNP/SCI result into personal income tax return |
| IS return + 2065 | Corporate tax return for IS-registered SCI |
We handle the entire filing chain, from monthly bookkeeping to submission.
Short-term furnished rentals (Airbnb, Abritel) have specific rules in France:
If you live outside France but own French property:
| KPI | Formula | Benchmark |
|---|---|---|
| Gross yield | (Annual rents / Purchase price) × 100 | 5–8% Paris, 8–12% province |
| Net yield | (Rents − Costs − Tax) / Total investment | 3–5% after tax and debt service |
| Debt ratio | Outstanding loan / Asset value | < 70% comfort zone |
| Expenses/Rents | Total costs / Annual rents | 20–30% well-managed |
| Cash flow | Rents − (Loan + Costs + Tax) | Positive ideal |
✅ 150+ property investor clients including foreign and non-resident landlords ✅ Bilingual support: we advise in English and handle all French tax authority correspondence ✅ Full-service: from pre-purchase structuring advice to annual filings and sale optimisation ✅ Transparent pricing: from €150/month for LMNP, €200/month for IS SCI
Yes. There are no restrictions on foreign property ownership in France. You will need a French bank account, a French tax identification number (numéro fiscal), and register your rental activity. We assist with all these steps.
LMNP (non-professional) applies when annual rents are below €23,000 OR below 50% of household income. LMP (professional) requires URSSAF affiliation but offers better loss offset against general income and full CGT exemption after 5 years. Most private investors remain in LMNP.
Yes, a notaire is always required for French property transactions regardless of the acquisition vehicle.
Major renovation works are depreciable over their useful life (10–20 years depending on nature). Minor maintenance costs are deductible as expenses in the year incurred.
Since 2018, France's wealth tax applies exclusively to real estate assets (Impôt sur la Fortune Immobilière, IFI). If the net value of your real estate assets in France (and worldwide for French tax residents) exceeds €1.3 million, IFI is triggered. The rates are progressive from 0.5% to 1.5%. For a Paris property portfolio worth €3 million with €800,000 in outstanding mortgage:
IFI for non-residents: if you live outside France but own French property worth more than €1.3 million net, IFI applies to your French real estate only (not your worldwide assets). This is a frequent surprise for expatriates returning to their home countries while retaining French property holdings.
Deductible debts for IFI: property purchase loans are deductible, but consumer loans used to finance property (e.g., renovations funded by personal overdraft) are not automatically deductible. We structure your financing so that IFI-deductible debt is maximised.
SCI shares and IFI: SCI shares are IFI-liable assets. The SCI's debt (mortgage, bank loan) is deductible against the IFI value of the shares at the gross asset level. However, the so-called croisements de déductions (cross-deductions between personal loans and SCI loans) are restricted since 2018 — we map your exposure carefully each year.
Background: Richard C., a British financial services professional, has lived in Paris since 2019. He owns three Paris apartments: one primary residence (Rue de la Pompe, 16th), one rental under LMNP (meublé non professionnel), and one rental SCI.
Total gross real estate: €4.8 million. Mortgage debt: €1.4 million. Net IFI base: €3.4 million → IFI liability: approximately €18,500/year.
Optimisation lever 1 — principal residence 30% deduction: the primary residence benefits from a statutory 30% IFI allowance, calculated on the property's market value. This reduced his taxable base by €255,000 (30% of the €850,000 primary residence value).
Optimisation lever 2 — SCI IS election: Richard's SCI elected for the IS (impôt sur les sociétés) regime. Importantly, SCI IS shares are valued at the equity value (assets minus debt at corporate level) rather than gross asset value for IFI purposes. Since the SCI IS had substantial depreciation accumulated, its equity value for IFI was €780,000 vs economic value of €1,200,000 — a €420,000 IFI base reduction.
Optimisation lever 3 — new mortgage on LMNP apartment: refinancing the LMNP apartment to extract equity reduced IFI-deductible debt further, while the released cash was reinvested in a life insurance product (assurance-vie) which is fully exempt from IFI.
Total IFI reduction achieved: from €18,500 to approximately €9,200 per year — saving €9,300 annually through structural and documentation optimisation, not through aggressive tax planning.
If you are a non-resident investor (living outside France) who owns French real estate:
Annual compliance calendar for property investors:
| Period | Action |
|---|---|
| October | LMNP registration update (P0i) for new acquisitions |
| November–December | SCI annual accounts preparation |
| January | CFE payment |
| March | LMNP BIC return (Form 2031) if professional status |
| May | SCI IS or IR income declaration |
| June | IFI declaration (above €1.3M threshold) |
We manage this complete fiscal calendar for investors with multiple assets, ensuring every deadline is met and every deduction captured.
Contact us for a free asset audit — bilingual support available 📍 58 rue de Monceau, 75008 Paris | Book an appointment
See also: LMNP accounting in Paris | Holding tax optimisation | Wealth management for business owners
French households hold over €8 trillion in real estate assets — two-thirds of their total gross wealth. France has approximately one million active SCI (civil property companies) and over three million LMNP (furnished rental) taxpayers. As tax complexity increases — IFI wealth tax, LMNP depreciation reintegration, EPC obligations — a specialist property accountant has become essential for maximising net returns and securing estate structures.
An SCI under income tax (IR) is tax-transparent — each shareholder declares their share personally, with progressive CGT exemptions after 22 years. An SCI under corporate tax (IS) can depreciate property, deduct manager remuneration, and distribute dividends to a holding company at ~1.25% effective rate. The right choice depends on your holding horizon, marginal tax rate, and whether you plan to sell within 15 years.
The micro-BIC regime offers a flat 50% deduction but eliminates accounting depreciation — typically worth €6,000–12,000 per year on a €250,000 property. The BIC real regime allows all actual cost deductions plus depreciation over 20-30 years, usually reducing taxable income to zero for 15-25 years. Note: since February 2025, accumulated depreciation is partially reintegrated into the capital gains calculation at sale — we model the long-term net impact for each client.
A holding company (IS-registered SAS or SARL) owning your SCI shares allows dividends to flow up in near-tax-free conditions under the parent-subsidiary exemption (~1.25% effective rate). Cash accumulates in the holding and funds new acquisitions without personal income tax, while accumulated depreciation reduces the IFI valuation of your SCI shares. This structure also facilitates succession via donation of bare ownership to children.
French succession law allows €100,000 per parent per child in tax-free gifts every 15 years. Dismemberment of ownership (donating bare ownership, retaining usufruct) reduces the taxable base by 30-50% depending on the donor's age. We run succession simulations for all property clients and coordinate with notaires to align legal and tax optimisation.
Wherever you are in France, we deploy a 100% digital interface to deliver fast, highly-structured accounting and financial steering.
Samuel Hayot is a French chartered accountant and statutory auditor registered with the Paris professional bodies.
The firm is based in Paris 8 and operates with a delivery model designed for businesses located across France.
Pennylane, Dext, Silae and an automation-first setup built for visibility and speed.
Visible phone number, simple contact path, fast engagement letter and tighter qualification of the mandate.
30 complimentary minutes with Samuel Hayot to challenge your reporting and surface your priority levers.
Owners, SCI, LMNP: who must declare, what to provide and what sanctions to avoid for declaring real estate in 2026.
Why use an online real estate tax specialist in 2026, in what cases and with what selection criteria?
Transmission, joint management, IR or IS, donation of shares: what are the real tax advantages of an SCI in 2026?
Taking stock of your real estate situation involves linking assets, legal situation, taxation and wealth strategy.
The choice depends on your strategy. An SCI under income tax (IR) is tax-transparent: each shareholder declares their share personally, property deficits can offset other income, and capital gains benefit from progressive exemptions after 22 years. An SCI under corporate tax (IS) allows depreciation of the property, deduction of management fees and director remuneration, and near-tax-free dividend remittances to a holding company (parent-subsidiary regime, ~1.25% effective rate). IS is generally more advantageous for furnished rentals, medium-term resale projects, and structured portfolios. We always run a comparative simulation before incorporation.
The micro-BIC regime (flat 50% deduction) is simple but eliminates the main advantage of LMNP status: accounting depreciation of the property over 20-30 years — worth €6,000 to €12,000 per year on a €250,000 property. The BIC real regime lets you deduct all actual costs (loan interest, maintenance, management fees, taxe foncière) and depreciate the property, typically reducing taxable income to zero for 15-25 years. Note: since February 2025, accumulated depreciation is reintegrated into the capital gains calculation at sale. We model the long-term net impact for each client and calculate the gain from switching to the real regime free of charge.
A real estate holding company (IS-registered entity owning SCI shares) provides four key advantages: (1) Near-tax-free dividend remittances to the holding under the parent-subsidiary exemption (~1.25% effective rate); (2) Cash pooling to fund future acquisitions without personal income tax; (3) Simplified succession planning — donating bare ownership of holding shares to children while retaining usufruct (rental income) at a reduced gift tax base; (4) Legal separation between personal and investment assets. We recommend this structure from the second property onwards.
IFI applies to anyone whose net real estate assets exceed €1.3 million on 1 January. For an IS-registered SCI, the shares are valued at net book value (assets minus SCI debt), often significantly below market value due to accumulated depreciation — a meaningful IFI advantage. For a personally-held LMNP property, the market value net of outstanding loans forms the taxable base. Non-residents who own French property are subject to IFI on their French assets only. We run annual IFI simulations for portfolio clients and optimise the taxable base through structuring and debt positioning.
Yes — there are no restrictions on foreign property ownership in France. You will need a French tax identification number (numéro fiscal), a French bank account, and must register your rental activity (SIRET for LMNP). Non-resident landlords pay French income tax on French-source rental income (minimum 20% flat rate, or standard scale if more favourable under an applicable tax treaty). Social charges of 17.2% apply to EU residents; non-EU residents affiliated to a foreign social security scheme may benefit from treaty exemptions. We manage all filings for non-resident clients, including the annual Form 2042 NR and IFI declaration where applicable.