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S.C.I

Posted by sabc15-427548 - Created: 3 years ago
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5 replies (Showing replies: 1 to 5)

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Posted by woody-383477 - 3 years ago

We bought a large old house to renovate into flats for permanent letting and put it into an SCI - yes, you do have to produce accounts and the tax forms are a bit of a nightmare  but our bank was happy to help us until we could do them on our own.  Other than  that, we have not encountered problems.

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Posted by sabc15-427548 - 3 years ago

Hi. in reply to Kanak,as I understand it AGM can now be held  by internet link or by conference call,sabc15.

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Posted by Kanak - 3 years ago

aren't you supposed to have an AGM with all the shareholders, do they live a long way away?

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Posted by Reveuse-918439 - 3 years ago

As clarksinfrance said, I imagine that the stumbling block is the 'but lucratif'. An SCI is not a business structure. CIF's says his friends have a holiday home, and having one property for location saisonnière is very a different kettle of fish from 'location meublé'. Holiday rentals doesn't make you a professional landlord, you don't need to have any business structure for holiday rentals as long as it accounts for less than a certain percentage of your household income. Renting out 'a few residential properties' puts you under a different tax régime, and even if you can offset the rental income from long term rental with expenses and therefore pay next to no tax, that wouldn't stop the income being classed as "bénéfices commerciaux". It would likely end up in the taxman reclassifying your SCI as a business, which would mean paying business taxes and make the venture very much less attractive. I presume that's what your notaire is trying to tell you.

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Posted by clarksinfrance - 3 years ago

Understand with SCI you have to produce accounts each year, but pay an accountant once and copy for each house in the future. Can't make a profit, but incomes and be offset by expenditures (renovations), have some friends who have purchased their holidayhome, as an SCI and it works for them.