Our sector expertise
Real Estate Tax Accountant
Accounting and tax firm for French real estate structuring: SCI under IR or IS, LMNP or LMP, property VAT, holding companies, resale tax and family transmission.
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You look for a real estate tax accountant when the issue is no longer just filing rental income correctly. The real question is how to choose the right structure and tax regime so your net return survives over time. In practice, the same comparisons come back again and again: SCI under income tax or corporate tax, LMNP under the real regime or micro-BIC, real estate holding company, property VAT, resale capital-gains treatment, family transmission or a move toward a property-dealer model.
In real estate, a good tax decision cannot be judged only in the acquisition year. It affects the holding period, borrowing capacity, cash circulation between entities, tax on resale and the way the portfolio is transmitted. A specialist real-estate tax accountant therefore has to reason asset by asset and structure by structure, not only at the level of one annual return.
This page is for that specific investor intent: helping property investors, SCI shareholders, furnished-rental landlords, family holding structures and more active operators choose a tax path that remains coherent from acquisition to resale and from one generation to the next.
The tax choices that really change net return#
SCI under IR or SCI under IS#
This is still the most common real-estate tax question — and it depends entirely on the project's horizon and economics.
SCI à l'IR (income tax) keeps fiscal transparency: each partner is taxed on their share of net property income at their marginal rate (up to 45% + 17.2% social charges). It allows the déficit foncier rule — losses from deductible works can offset other taxable income up to €10,700 per year. The property is not depreciable, but the capital gain on sale benefits from full IR exemption after 22 years and full social-charge exemption after 30 years.
SCI à l'IS (corporate tax) allows depreciation of the property (typically 25-30 years for the building, excluding land), full deduction of director compensation and a more favourable interest profile. IS rates are 15% on the first €42,500 of profit (SME), 25% beyond. But on sale, the capital gain is taxed as corporate profit (25%) without holding-period relief, making the IS option costly if a near-term sale is planned.
We model both regimes over a 5-10 year horizon, factoring in your marginal tax rate, planned works, expected rents, exit timing and family transmission plans.
LMNP, LMP and furnished rentals#
LMNP (Loueur Meublé Non Professionnel) under the real regime can neutralise much of the tax burden through depreciation, but it requires clean accounting, a defensible depreciation schedule and a clear view of how the landlord's status may evolve if the portfolio grows.
Under LMNP at real regime, the building (excluding land, typically 15-20% of total value) is depreciated over 25-30 years, furniture over 5-10 years, and works over 10-15 years. The depreciation often reduces taxable rental profit to zero for 10-15 years.
Once rental income from furnished property exceeds €23,000 per year and 50% of household income, the LMP (professional) status applies automatically, with major implications: rental losses become deductible against global income, but the operator falls under URSSAF social contributions on profits, and the activity is included in the IFI base differently. We monitor this threshold for every client approaching the limit.
Property VAT and optional VAT on rents#
In property matters, VAT mistakes can be expensive. Commercial-rent VAT options, VAT on margin (for marchands de biens), VAT on total sale price and para-hotel activity rules all need proper qualification and documentation before the deal is executed.
VAT on commercial rent: leases of commercial premises are by default exempt from VAT, but the lessor can elect VAT (irrevocable for 10 years), allowing recovery on acquisition/works costs (~20% saving). The election must be formally notified to the tax office and the tenant.
VAT on margin (marchands de biens): taxes only the difference between sale and purchase prices. Eligibility depends on the original acquisition (must not have given rise to VAT deduction), the nature of the asset and the scale of works. Misqualification triggers full-price VAT, which can erase the deal's margin.
Para-hotel VAT (10%) on furnished rentals: requires at least three of four services (breakfast, regular cleaning, linen, reception) and proper service-invoicing structure. The option allows VAT recovery on acquisition and works.
Property holding companies and family transmission#
Once several assets, several shareholders or several generations are involved, the holding patrimoniale structure becomes strategic. It unlocks:
- Régime mère-fille: dividends from SCI subsidiaries flow to the holding at quasi-exemption (1.25% effective tax rate).
- Cash mutualisation: cash from one SCI can finance acquisitions in another via current-account loans or capital injections, without exiting the holding's tax shelter.
- Transmission via share donation: with usufruct reservation, the donation tax base is reduced by 30-60% depending on the donor's age. Combined with the €100,000 per parent/per child allowance renewable every 15 years, this lever can pass a significant portfolio with minimal duties.
- Dutreil pact: under conditions, transmission of shares in an operating real-estate company (marchand de biens, hotellerie) can benefit from a 75% reduction in donation rights.
How we work on a high-stakes real-estate tax file#
1. Start from the actual project#
We look at the asset type, use model, expected holding period, lenders, shareholders, income goals and exit scenario to understand whether the logic is rental yield, patrimonial holding, active development or family transmission.
2. Build comparative scenarios#
Each scenario integrates current tax, depreciation, available cash, refinancing capacity, dividends, resale tax and the shareholders' personal position. This avoids tax choices that later damage flexibility or liquidity. The scenarios are quantified across a 5-10 year horizon — the right way to read a real-estate tax decision.
3. Move into execution#
We then help create or update the structure, organise the accounting setup, prepare the right returns (2072 for SCI à l'IR, 2065 for SCI à l'IS, 2031 for LMNP), secure tax options, document sensitive steps and coordinate with the notaire, lawyer or bank where needed.
Common pitfalls we help investors avoid#
1. Choosing SCI à l'IS purely for depreciation, without modelling the exit#
The IS option is attractive during operating years (depreciation reduces current tax) but punitive on sale (25% IS on the gain with no relief). For a 7-10 year hold with planned exit, IR often wins.
2. Missing the LMP threshold#
Crossing the €23,000 + 50% threshold without preparation can trigger URSSAF reassessment and a fundamentally different tax position. We monitor this for every active LMNP client.
3. Skipping the VAT option file#
The VAT option on commercial rent must be in writing, formally notified, and respected for 10 years. Many investors recover VAT informally on works and find themselves reassessed.
4. Confusing investment SCI and marchand de biens#
A real estate operator who flips properties may be requalified as a marchand de biens — losing capital-gains tax relief and triggering full BIC taxation plus VAT-on-margin obligations. Activity qualification must be set from the first deal.
5. Leaving the family transmission until too late#
Donations with usufruct reservation are most powerful when the donor is young. Waiting reduces the discount. We build the transmission roadmap as part of the initial structuring.
What to check before acquisition or restructuring#
Before acting, review acquisition method, price allocation, financing structure, fees, planned works, intended use, income qualification, shareholder agreement and exit strategy. Those choices directly shape both future accounting quality and the tax strength of the file. The right structure for a long-term rental property may not be the right one for a commercial property, a serviced residence, a family SCI or a quick resale project.
What you should get in the first 90 days#
The first quarter delivers:
- a clear view of the relevant structures and the rationale for each;
- the immediate tax risks worth addressing (VAT option, LMP threshold, IFI exposure);
- the realistic options on IR, IS, VAT and holding design;
- the supporting documents or cleanups still required;
- a more readable link between tax choices and true net return;
- a roadmap that stays usable from acquisition to exit and from one generation to the next.
Why Hayot Expertise for your real estate tax file#
We combine accounting expertise with deep real-estate tax knowledge: SCI IR / IS arbitrage, LMNP real-regime depreciation, para-hotel VAT structuring, marchand-de-biens qualification, holding patrimoniale, Dutreil pact, and capital-gains optimisation. We work nationally with a digital model: same delivery quality, faster turnaround.
Free quote within 24 hours, first meeting on the house to review your portfolio, identify quick wins (VAT option, LMNP regime, IR vs IS arbitrage) and define a 12-24 month roadmap aligned with your patrimonial goals.
Key tax positions we monitor each year#
| Position | When it matters | Action |
|---|---|---|
| LMNP real-regime depreciation | Every year, on every furnished unit | Update schedule and 2031 |
| LMP threshold (€23k + 50% test) | Yearly, when furnished rents grow | Flag 3 months ahead of crossing |
| Property capital-gains relief | On every sale, IR-regime SCI | Calculate holding period and abatements |
| Mère-fille election | After holding restructuring | Confirm 95% ownership and minimum holding |
| Para-hotel VAT option | Acquisition of new build, refurbished asset | Set up services and invoicing |
| IFI base | Yearly, January | Reconcile properties, debt and exemptions |
| Dutreil pact | Operating real-estate companies | Multi-year commitment tracking |
These positions are reviewed at every major transaction (acquisition, sale, refinancing, donation) and at the annual close, so the tax trajectory stays defensible across the holding period and the eventual exit. For investors with international exposure (cross-border SCIs, non-resident partners, foreign properties), we coordinate with the relevant tax treaty rules and ensure consistent treatment in France and the residence country.
Non-Resident and Foreign Investors in French Property#
If you live abroad and hold property in France, your tax treatment is not decided by French rules alone. It depends on the bilateral tax treaty between France and your country of residence, and each treaty is different. The same applies in reverse, for a French resident owning property abroad. Getting this wrong on rental income, or on a resale capital gain (plus-value immobilière), is a common and costly mistake in cross-border files.
A return to France, or a departure from it, can also expose latent gains to the exit tax where French property is held through a company. We handle these files with international tax lawyers, notably for owners moving between Europe, North America and the Maghreb.
Sector Ecosystem
French real estate combines several overlapping tax logics: rental income, BIC, corporate tax, property VAT, capital gains, SCI ownership, furnished rentals and transmission planning. The role of the real-estate tax accountant is to arbitrate between net return, legal flexibility and patrimonial goals.
IR vs IS
Core comparison
SCI, LMNP, commercial property
Typical assets
bad exit economics
Main risk
cash + resale + transmission
Decision lens
family SCI structuresLMNP and LMP landlordsproperty holding companiescommercial-property investorsmulti-asset portfoliosfamily transmission situations
Practical framework
Practical guide before structuring a real estate portfolio
01
Define the real objective
Clarify whether the project is mainly about yield, capital accumulation, family transmission, resale or shared ownership before choosing a structure.
02
Compare structures before acquisition
Test direct ownership, SCI under IR, SCI under IS, LMNP and holding-company routes before signing, because the best decision is rarely made after closing.
03
Check VAT and income qualification
Rental type, works, commercial use and tax options should be qualified early to avoid expensive VAT or classification mistakes.
04
Model the exit, not just the first year
A structure that looks efficient in year one can become costly on resale or transmission if the long-term path is ignored.
Your guarantees
National coverage, Parisian expertise
Wherever you are in France, we deploy a 100% digital interface to deliver fast, highly-structured accounting and financial steering.
Regulated firm
Samuel Hayot is a French chartered accountant and statutory auditor registered with the Paris professional bodies.
National reach
The firm is based in Paris 8 and operates with a delivery model designed for businesses located across France.
Modern stack
Pennylane, Dext, Silae and an automation-first setup built for visibility and speed.
Direct contact
Visible phone number, simple contact path, fast engagement letter and tighter qualification of the mandate.
Need a quick read on your situation?
30 complimentary minutes with Samuel Hayot to challenge your reporting and surface your priority levers.
Perspectives
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FAQ
Frequently Asked Questions
What is the difference between an accountant and a real estate tax accountant?
A real estate tax accountant combines bookkeeping and tax advice on patrimonial transactions: SCI IR/IS arbitrage, LMNP optimisation, real estate holding, VAT on margin. Unlike a tax lawyer, they also produce the tax filings (2072, 2031, full tax pack) and provide annual follow-up on the property investments.
SCI under IR or IS: how to choose for rental property?
An SCI under IR is fiscally transparent: rental income is taxed at the partners' marginal rate, with property-deficit relief available. It suits long-term holding. An SCI under IS allows the property to be depreciated and reduces current taxation, but the capital gain on sale is heavily taxed. The choice depends on duration and strategy.
How do you optimise VAT on margin for a property dealer (marchand de biens)?
VAT on margin taxes only the difference between sale and purchase prices, not the full price. It applies when the initial purchase did not allow VAT recovery (existing property, sold by an individual). The accountant documents each deal, checks eligibility and secures the option to avoid requalification as VAT on full price.
What is the LMNP real regime and when is it advantageous?
The LMNP real regime allows depreciation of the building (excluding land) over 20-30 years and deduction of all real expenses (interest, works, taxes, fees). It becomes advantageous from €25,000-€30,000 of annual rent, often neutralising 100% of taxation for 15-20 years after acquisition.
How do you set up a real estate holding company and what are the benefits?
A real estate holding (SAS or SARL under IS) holds shares in subsidiary SCIs. It enables quasi-exempt upstream dividend flows (mère-fille regime, residual taxation ~1.25%), cash pooling to reinvest, optimised transmission via share donation, and a clean split between personal assets and real estate holdings.
What tax applies to the capital gain of an SCI under IS?
Under SCI à l'IS, the capital gain is calculated on the difference between the sale price and the net book value (after depreciation), then taxed at the 25% corporate rate (or 15% within the €42,500 SME band). There is no holding-period relief, unlike the IR regime.
How can you pass on a real estate portfolio while limiting gift duties?
The main levers are: donation of bare ownership with usufruct retention (taxable base reduced by 30-60%), temporary démembrement of an SCI, donation of holding shares (consolidated debt deducted from value), and the €100,000 per parent and per child allowance renewable every 15 years. A succession simulation is essential.
Should you opt for VAT on commercial-rental income?
Opting for VAT on commercial rent allows recovery of VAT on acquisition or renovation works (up to 20% of cost). In exchange, rent is invoiced with VAT, neutral for a VAT-registered tenant. This option is irrevocable for 10 years and must be formally notified to the tax authority.
Article written by Samuel Hayot
Chartered Accountant, registered with the Institute of Chartered Accountants.
Regulated French firmUpdated 30 March 2026
Regulated French accounting and audit firm based in Paris 8, built to support companies across France with a digital and decision-oriented approach.