Our sector expertise
Real Estate Developer Accountant
Accountant for real estate developers and off-plan (VEFA) sales: per-project accounting, inventory and work in progress, SCCV, instalment calls, VAT, margin per project.
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A real estate developer does not earn money like an ordinary trader. You tie up capital for months (often several years), you carry land, you pay for works before collecting most of the price, and your result only becomes readable as each project progresses. Accounts kept as a single block, with no breakdown by project, hide exactly what matters to you: how much each project actually earns, and when.
Based in Paris (8th district) and registered with the Order of Chartered Accountants of Ile-de-France, we support residential and commercial developers on structuring their projects, per-project analytical tracking, taxation (corporate income tax, VAT) and cash-flow management in off-plan (VEFA) sales.
Not to be confused from the outset: the real estate developer builds, or has built, in order to sell (long projects, carrying land, inventory of projects in progress), whereas the property dealer (marchand de biens) resells an existing asset on a short buy-and-resell cycle. Two real estate inventory businesses, but two distinct sets of accounts.
Quick answer: what sets a real estate developer's accounting apart#
A real estate developer's accounting is kept by project, not by financial year. Land, works and projects in progress are inventory and work in progress, never fixed assets, because they are intended for sale. The result is recognised over time or at completion, and cash flow is managed project by project, at the pace of off-plan (VEFA) instalment calls. Each project is often placed in a dedicated SCCV.
What is the difference between a developer and a property dealer?#
This is the first confusion to clear, because it changes the entire accounting and tax setup.
The property dealer (marchand de biens) buys an existing asset to resell it, sometimes after renovation, on a short cycle. Their logic is buy-and-resell, with VAT frequently computed on the margin (article 268 of the French Tax Code) and a resale commitment. If that is your activity, the dedicated page on the accountant for property dealers, distinct from developers covers its specifics (inventory turnover, resale commitment, VAT on margin).
The real estate developer builds, or has built, in order to sell. They buy land, file a permit, finance and run a construction site, market lots often before completion, then deliver. The cycle is long, the funding need high, and the result is recognised over the life of the project. In both cases this is a commercial activity (BIC), usually carried out by a company subject to corporate income tax; but the pace, the carrying of assets and the risk are entirely different.
Our reading#
A developer who applies the property dealer's accounting model to their activity deprives themselves of the one metric that truly matters: the forecast profitability of each project, tracked continuously. Until the project is broken down analytically, you are flying blind between buying the land and delivering.
Accounting by project, not by financial year#
The heart of a developer's accounting is per-project tracking. Each project (a building, a subdivision, a set of homes) must be isolated: its land, its fees (architect, engineering firms), its works, its financial costs, its marketing costs, and against these its sales.
In practice, many developers place each project in a dedicated structure, most often an SCCV (a civil construction-sale company) or an SNC, sometimes under a holding company overseeing the whole. This setup isolates risks, clarifies the accounts per project and makes it easier for co-investors to come in on a specific project. The choice of structure is prepared upstream, when setting up the company that will carry the project.
Even when everything stays in a single company, analytical tracking by project is essential. Without it, you cannot answer the basic question: does this project deliver the margin set out in the forecast?
How are a developer's land and works recorded?#
This is a strong feature of property development. For a developer, land, works and projects in progress are not fixed assets: they are inventory. You do not hold these assets to operate them over the long term, but to sell them. They therefore appear in inventory and work-in-progress accounts, not under fixed assets.
From this treatment flows the question of the result. The result of a development project is recognised either over time as it progresses, or at completion of the project, depending on the applicable rules and the nature of the sales. In concrete terms, this determines when your profit appears in the income statement, and therefore your corporate income tax. A flawed method, or poorly documented progress tracking, can artificially shift your result from one financial year to the next.
The underestimated risk#
The most frequent friction point in development files is not the calculation, it is documenting progress: works progress statements, status of instalment calls, reconciliation with notarised sales. If these documents are not kept project by project and as events unfold, justifying the result at the year-end closing becomes laborious, and fragile in the event of an audit. It is the point on which we most often take over files: a result that is right in substance, but a progress justification rebuilt after the fact, and therefore fragile.
How does cash flow work in off-plan (VEFA) sales?#
Off-plan sale (VEFA), governed by the French Construction and Housing Code, structures a developer's cash flow. The buyer does not pay everything at signing: they pay through instalment calls staggered according to the progress of the works. You therefore collect at the pace of the construction site, stage by stage.
This mechanism has a direct consequence: the cash-flow need is assessed by project, not globally. Between acquiring the land and the first significant instalment calls, the project consumes cash. Well anticipated, it is manageable; poorly anticipated, it is the leading cause of cash-flow strain for developers. We work on this point through a forecast and cash-flow plan by project.
In off-plan sales within the protected sector (housing), the completion guarantee (GFA) is mandatory: it protects the buyer by guaranteeing that the building will be completed. Beyond that, delivery triggers the usual post-delivery guarantees (perfect completion, two-year, ten-year), which must be tracked and, where appropriate, provisioned.
VAT and transfer duties: the principle#
The indirect taxation of development deserves to be framed upstream, project by project, because it depends on the nature of the asset and the terms of the acquisition.
In principle, the sale of a new building is subject to VAT on the full price. For certain building land or certain resales, the VAT on margin regime (article 268 of the French Tax Code) may apply, subject to conditions. The distinction is never trivial: it changes the cost price, the net margin and the VAT cash position of the project. Some arrangements call for specific treatment: the supply to self (LASM, livraison à soi-même) when the developer keeps a built asset for its own use, or the dation en paiement (land paid for in built lots), often seen when acquiring the land.
On transfer duties, the commitment to build and the commitment to resell allow, under conditions, reduced transfer duties on the acquisition of the land. These commitments must be handled rigorously: they imply meeting deadlines and being able to justify them.
We never settle these matters in the abstract: the exact regime is confirmed case by case, ahead of signing, as part of our business taxation support. On this subject, it is better to secure before the deed than to correct afterwards.
Metrics to track project by project#
A well-equipped developer does not track their company, they track their projects. Here are the metrics we put in place in per-project reporting.
| Metric | What it measures | Why track it |
|---|---|---|
| Forecast margin per project | Expected profit on the project | Validate profitability before committing to the land |
| Pre-sales rate | Share of lots reserved before or early in construction | Often a condition for releasing the financing |
| Works progress rate | Physical and financial status of the site | Basis for recognising the result and the instalment calls |
| Working capital and cash by project | Cash tied up between land and collections | Anticipate cash-flow strain |
| Sell-through rate | Pace of sales of remaining lots | Spot a project that is marketing poorly |
A common case#
A residential developer sets up a dedicated SCCV for a project of around twenty homes. At the outset, everything is kept in global accounts inherited from the previous project. The result: it is impossible to say, mid-construction, whether the margin holds. We isolate the project in its own analytical tracking (land, fees, works, financial costs, sales), reconcile the instalment calls with the works progress statements, and rebuild a cash-flow table by project. The developer then sees that financial costs are drifting away from the forecast, and adjusts the drawdown schedule of the loan. The project stays profitable, but it was the per-project tracking that allowed it to be seen in time.
Our services for property developers#
Our engagement is built around your real activity:
- structuring projects (SCCV or per-project SNC, holding) and setting up the carrying structures;
- bookkeeping and review with analytical tracking by project and treatment of inventory and work in progress;
- support on result recognition (over time or at completion) and justifying progress at the closing;
- taxation: corporate income tax, VAT (full price or margin depending on the case), commitments to build or resell;
- forecast and cash-flow plan by project, margin and pre-sales reporting.
If your activity combines several facets (rental, management, development), our real estate accountant page gives an overview of the sector, and if you also handle sales, the real estate agency accountant page covers its specifics.
Points of attention for 2026#
- Lock the VAT regime (full price or margin) project by project, before acquiring the land, not after.
- Document progress continuously: works progress statements, instalment calls, notarised sales, to secure result recognition.
- Track cash flow by project rather than globally: that is where strain occurs.
- Anticipate post-delivery guarantees (perfect completion, two-year, ten-year) and their accounting treatment.
Let's talk about your next project#
Whether you are setting up your first SCCV or running several projects in parallel, we structure your accounts so they tell you what matters: the margin of each project, in real time. This article is for information; a decision on a specific project requires reviewing your situation, your deeds and the law in force. Contact the firm for a first discussion about your development activity.
Updated 19 June 2026. Informative content reviewed by a chartered accountant registered with the Île-de-France Chartered Accountants Board. A decision specific to your project requires a review of your situation, your deeds and the law in force.
Sector Ecosystem
Property development is a commercial activity (BIC) with a long cycle, usually carried out by a company subject to corporate income tax, often through a dedicated structure per project. Its accounting stands out for carrying inventory (land and projects in progress), recognising the result over time or at completion, and cash flow paced by off-plan instalment calls. Management is done by project, never as a single block.
BIC, corporate income tax (company)
Tax regime
Inventory and work in progress
Land and works recorded as
Over time or at completion
Result recognition
SCCV or SNC per project
Frequent dedicated structure
Staggered instalment calls
Collection in off-plan sales
Completion guarantee
Off-plan guarantee (housing)
Residential developer (homes)Commercial and office developerLand developer-subdividerDevelopment in a dedicated SCCV per projectLandlord-developer
Practical framework
Structuring the accounting of a development project
01
1. Choose and create the carrying structure
Decide between keeping the project in the existing company or a dedicated structure (SCCV, SNC), possibly under a holding. The choice is prepared before acquiring the land, based on financing, co-investors and risk isolation.
02
2. Open analytical tracking by project
Isolate each project with its own accounts: land, fees (architect, studies), works, financial costs, marketing costs, and sales. This is the condition for tracking the real margin, project by project.
03
3. Treat inventory and work in progress correctly
Record land, works and projects in progress under inventory and work in progress, not as fixed assets. Document progress (works progress statements) to justify result recognition at the closing.
04
4. Set up cash flow and instalment calls
Build a cash-flow plan by project, reconcile off-plan instalment calls with works progress statements and notarised sales, and anticipate the cash consumed between the land and the first significant collections.
05
5. Secure taxation and guarantees
Lock the VAT regime (full price or margin) and the commitments to build or resell upstream. Track post-delivery guarantees (perfect completion, two-year, ten-year) and their accounting treatment.
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.
FAQ
Frequently Asked Questions
What is the difference between an accountant for a developer and for a property dealer?
The developer builds, or has built, in order to sell, over long projects with per-project tracking, work-in-progress inventory and cash flow paced by off-plan instalment calls. The property dealer buys and resells on a short cycle. Both are commercial activities (BIC) subject to corporate income tax, but the accounting setup, result recognition and asset carrying differ significantly.
Why set up an SCCV for a development project?
The civil construction-sale company (SCCV) isolates a project: its accounts, risks and financing are separated from the rest of the activity. This clarifies the margin per project and makes it easier for co-investors to join a specific project. It is not mandatory, but it is a common setup, to be decided case by case before creating the structure.
How are land and works recorded for a developer?
For a developer, land, works and projects in progress appear under inventory and work in progress, not as fixed assets, because they are intended for sale. The result of the project is then recognised over time or at completion, depending on the applicable rules, which determines the financial year to which the profit (and therefore the corporate income tax) is attached.
How does cash flow work in off-plan (VEFA) sales?
In off-plan sales, the buyer pays through instalment calls staggered according to the progress of the works. The developer therefore collects at the pace of the construction site. Because the project consumes cash between buying the land and the first significant collections, cash flow is managed project by project, with a dedicated cash-flow plan.
Which VAT regime applies to a development project?
In principle, the sale of a new building is subject to VAT on the full price. For certain building land or certain resales, VAT on margin (article 268 of the French Tax Code) may apply, subject to conditions. The exact regime depends on the asset and the acquisition: it is confirmed project by project, ahead of signing, not afterwards.
Is the completion guarantee mandatory?
Yes, in off-plan sales within the protected housing sector, the completion guarantee (GFA) is mandatory: it assures the buyer that the building will be completed. It is accompanied by post-delivery guarantees (perfect completion, two-year, ten-year), which must be tracked and, where appropriate, provisioned.
Article written by Samuel Hayot
Chartered Accountant, registered with the Institute of Chartered Accountants.
Regulated French firmUpdated 19 June 20262 sources cited
Regulated French accounting and audit firm based in Paris 8, built to support companies across France with a digital and decision-oriented approach.
Sources
Official and operational sources cited for this page.