Why invest in Val d'Isère | Cabinet Roche & Cie

Why invest in Val d’Isère: the legal and tax advantages of your real estate project

Val d’Isère, France’s iconic ski resort, is a popular destination not only for its world-renowned ski slopes but also for its exclusive real estate market and excellent rental yields. Savvy investors see it as a unique opportunity, whether for a second home or to generate attractive rental income. However, before embarking on such a project, it is essential to carefully plan the legal and tax structuring of your investment to maximize the benefits.

Legal structures for real estate investment in Val d’Isère

Real estate investments can be structured in several ways, each with distinct tax and legal implications. Here’s an overview of the most common options:

Acquisition in Your Own Name

This form of investment is ideal for individuals wishing to acquire property for personal use. Simplicity and familiarity are the main advantages of this option, but it can become problematic when multiple investors are involved in the rental process. In such cases, decisions must be made unanimously, complicating management.

If you rent out your property seasonally, the rental income will be taxed as “Bénéfices Industriels et Commerciaux” (BIC), an advantageous tax regime for owners of furnished properties.

Non-Trading Property Company (SCI)

The SCI is an excellent choice for those looking to organize the collective ownership of a property and facilitate the transfer of assets within the family. Although the SCI simplifies the management and transfer of family assets, it is not well suited to furnished rentals, which are considered a commercial activity in France.

Family LLC (SARL de Famille)

For those planning to rent out their property in Val d’Isère, the SARL de Famille offers significant advantages. This type of company allows you to benefit from the BIC regime while protecting the partners through a solid legal structure. It is particularly attractive for families wishing to manage their investment collectively, with additional inheritance advantages.

How is rental income taxed in Val d’Isère?

For investors considering renting out their property in Val d’Isère, it is crucial to understand which tax regimes apply.

Furnished Rentals

In a resort as popular as Val d’Isère, furnished rentals under the “régime réel” are often the most advantageous option. This system allows you to deduct various costs and expenses, such as loan interest, renovation and maintenance work, and management fees. It also offers the possibility to depreciate the value of the property (excluding land) and the furniture, which can significantly reduce the taxable base.

In many cases, depreciation combined with deductible expenses can result in reduced or even zero taxation of rental income for several years. This approach is ideal for high-end properties in an exclusive resort such as Val d’Isère.

Para-Hotel Plan

If you provide additional services to your tenants, such as concierge services, breakfast, or regular cleaning, your business could be classified as a para-hotel. This regime allows you to benefit from the BIC regime while offering the possibility of reclaiming VAT on the purchase of your property and the services provided, under certain conditions. However, managing this type of business requires more rigorous administrative oversight.

Optimizing your investment in light of Real Estate Wealth Tax (IFI)

The IFI applies to net real estate assets exceeding 1.3 million euros. Given the high property prices in Val d’Isère, your investment is likely to fall into this category. Although the IFI can represent a significant burden, there are several strategies for mitigating its impact, particularly by structuring your investment intelligently from the outset.

Our support services for a successful real estate investment in Val d’Isère

Our accounting firm, with extensive experience in assisting international investors, will support you throughout your real estate project in Val d’Isère. We offer advice on:

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Selecting the legal structure best suited to your objectives;

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Managing rental income and optimizing taxes;

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Declaring your income in France and preparing your Impôt sur la Fortune Immobilière (IFI) tax returns;

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Monitoring all your accounting and tax obligations in France.

Thanks to our expertise in real estate and international taxation, we offer personalized support to help you maximize the profitability and success of your investment in Val d’Isère.

Why invest in Val d’Isère