Category: Legal and Tax Structuring

This section collects the articles published on the legal and tax structuring of property transactions — how the legal form chosen governs the tax that follows from it, across the whole life of the asset.

On acquisition, IMT and Stamp Duty apply. The taxable base, the rate and the available exemptions depend on the intended use of the property, on the status of the buyer and, in certain cases, on tax residence. Both are assessed before the deed, which means the position must be settled when the promissory contract is signed, not afterwards.

During ownership, IMI applies and, above the statutory threshold, AIMI, whose incidence differs according to whether the owner is an individual or a company. On the income produced, residential letting, short-term rental and business activity must be distinguished, each carrying its own basis of taxation and its own deductions.

On disposal, there is the capital gain. How it is computed, which exclusions apply, how reinvestment operates, and how a property held through a company is treated will often account for a larger difference than anything achieved in negotiating the price. That is why the exit is planned at the entry.

Running across all three stages are the choice of vehicle — own name, company, co-ownership, undivided estate — and the tax residence of the owners. None of these choices is neutral, and every one of them costs more to correct than to make.

Adjacent sections, within these same publications: real estate investment and buying and selling property.

The scope of our work in this field is set out on the real estate investment and structuring page. General information only; it does not replace advice on a specific case.