Roche & Cie

Focus on the Asset Company in France

17 Jun 2016

An asset company is created to hold and manage real and personal property. Generally, it has more attractive tax benefits as those granted to individuals.

To avoid income tax (maximum 45%) and CSG.CRDS (15.5%) but also for the capping of the wealth tax (see case of Mrs Bettencourt) it is necessary to accommodate your assets in a company subject to the corporate tax (tax at 15% up to € 38,120 and 33.3% above)

1. To do this, you have to create a small limited company with capital of 1000 Euros. Your children will be holders of the bare ownership of the shares in order to avoid inheritance tax.

2. You bring to the current account the following:

  • Your liquidities,
  • The company shares will be sold to the asset company,
  • The buildings that have more than thirty years will be transferred to this company,
  • All other property in capital gains exemptions will also be transferred to this company.

3. All income will be subject to corporate tax. 15% up to € 38,120 and beyond, 33.3%. However, the company will reserve them and strengthen the capital graciously commanded the children.

4. Cash surpluses can be removed on the current account without any tax since they are not revenue.

5. The wealth tax (ISF) will be capped at 75% of your income, but all your investment income benefit to the LLC and not to yourself, only your wages will return to the tax base.

However, the subject is particularly complex, please contact a specialist: Christian ROCHE (St Barthélémy hours).