SCI translated into Chinese means real estate civil company, which is a special company form specializing in asset management. The way it manages assets is "non-commercial". Only by meeting this condition can we enjoy a special legal system and be included in the personal income tax payment system. It needs to be composed of at least two shareholders, who can be natural persons or legal persons, and a corporate legal person is responsible for managing the operation of the company. Its operation must conform to the law and the interests of shareholders. Each shareholder shares the capital, but there is no minimum registered capital requirement. Shareholders do not enjoy limited liability and must be liable for the debts of the company according to the percentage of shares held.
When buying real estate in France, in addition to paying the transfer fee accounting for 5.09% of the transaction amount, the following four expenses (whether in the name of an individual or in the name of SCI) must be considered: rich tax, real estate value-added tax, inheritance tax and 3% tax.
According to French law, French companies or foreign companies (including sci in France or sci in Monaco) or other legal entities, if they directly or indirectly hold real estate, need to pay 3% of the market valuation of the real estate they hold every year unless certain exemption conditions are met. The calculation is based on the market valuation of real estate on June 65438+1 October1day.
3% tax can be exempted in the following two cases:
-The country where the company or legal entity is located has signed a bilateral agreement with France;
-More than half of the assets of legal entities (including sci in France) are financial assets.
From the perspective of 3% tax, a company is defined as a French real estate civil company sci if its French real estate assets account for more than half of all its French assets on June 65438+ 10/day every year.
If you buy a property and want to sell it, it involves the property value-added tax. Of course, French law stipulates the corresponding reduction and exemption policy, and the longer it is held, the greater the reduction and exemption. If you buy real estate and sell it within five years, you will not enjoy the reduction or exemption policy. From the sixth year of holding, the proportion of reduction and exemption increases in direct proportion with the extension of the number of years, and the sale after holding for 22 years can be exempted from VAT.
It should be pointed out that the implementation condition of this relief policy is that real estate must be directly held by individuals or sci. Through the establishment of sci to hold real estate, and through the transfer of sci shares, the tax avoidance purpose of offsetting real estate value-added tax can be achieved. From the perspective of real estate value-added tax, when a company holds more than half of all assets in France in the last three fiscal years, it will be defined as a French real estate civil company sci.
Real estate located in France is governed by French inheritance law. According to the French inheritance law, in the case of children, the heirs of both husband and wife can choose all the real estate use rights or a quarter of the real estate ownership. The highest rate of French inheritance tax is 45%. Inheritance caused by death between husband and wife does not need to pay inheritance tax.
From the perspective of rich tax and 3% tax: French real estate assets 30 \ French total assets 40=75%, more than 50%, so it is sci；; From the perspective of real estate value-added tax: French real estate assets 30\ all assets in the world 100=30%, less than 50%, so it is not sci.
20 12 July, the average house price in Paris was 8,453 euros per square meter (equivalent to 70,000 yuan). If you buy an apartment of about 80,000 euros in the center of Paris and rent it to local students or tourists, the rent is about 400-500 euros per month, and the profit can reach 7%- 10%.
When buying a house, if the house is less than five years old, you have to pay 19.6% VAT (TVA in France). In the process of holding, two kinds of local taxes are paid every year-the tax rate is determined by the local government, and each city is different: one is the residence tax and the other is the property tax, which is calculated by multiplying the rent of the same lot by the local tax rate (the property tax in Cannes is as high as 43%). Capital gains tax, up to 33%, will be paid during the transfer process, but it will be reduced or exempted according to the years of holding the house.
What are the taxes on houses in France?
Local tax is an important tax item related to houses in France. This local tax needs to be handed over to the local government, which will use this part of the tax collected for local infrastructure construction. In France, the local tax on houses can be divided into two parts, one is the residence tax and the other is the land tax. Residence tax is levied every year, and whoever lives in the house on June 65438+ 10/0 this year will pay it. Land tax is also paid once a year, and it is only levied on homeowners.
Income tax is also an important housing tax in France. Many people rent out their houses after buying them, so you need to pay income tax on the rent. The proportion of real estate income tax is not exactly the same in different regions. In addition, when dealing with real estate, France also needs to pay necessary notarization fees and transfer fees, and most of these fees will also go into local tax accounts.
Value-added tax is also an important tax item involving real estate in France. This value-added tax is levied according to the difference between the owner's price when buying a house and the price when selling a house. People can't sell their houses at a loss, and they have to pay VAT to the government if they don't lose money. France has a high rate of real estate value-added tax. Many people will divide the house price into several parts when conducting real estate transactions, one part is real estate, and the other part is furniture or other facilities. In this way, only the value-added tax is levied on the money of the real estate, and other items can be effectively avoided, so that their personal income can be significantly improved.