French property development - SCI or what?

[fionas]

My husband (French resident) and me (UK resident) are about to buy an old building in France and renovate it into 4 apartments to sell and/or let. The renovation costs are significant compared with purchase cost and there will be a substantial capital gain. Should we buy it as an SCI to provide flexibility (e.g. to enable family investors). What are the advantaged/disadvantages? What are the tax implications of doing so for capital gains, VAT and letting income? Will banks provide mortgages to SCIs? How do I set one up? Interested in hearing from potential advisers.

[Taxbar]

Too many variables and not enough details.

Broadly French Property development which is chargeable to income tax in both France and the UK (and not CGT) is best done thru a UK or French Company and not an SCI.

If you are refurbing and then letting; and can get CGT treatment, an SCI might be useful but it all depends.

There are no one size fits all solution and it depends on your circumstances, especially as your residence position might not be as clear cut as you think.

Daniel Feingold
STP
info@stratax.co.uk