Accountancy services for real estate companies

SCI French Tax Implications 

The accounting obligations of real estate investment companies (SCI)

Real estate investment companies (SCI) that do not receive rental income are not required to keep accounts, although it is highly recommended. Proper accounting records ensure that the various contributions of partners are traceable and movements on their current accounts transparent. The purpose of accounting records is to make partners’ current accounts enforceable vis-à-vis the French tax authorities and other partners. The records will also be helpful in settling various disputes (tax audit for the real estate wealth tax, split of assets and rights in the event of divorce, inheritance challenge, etc.)

If a real estate investment company (SCI) receives rental income, the main purpose of accounting records is to facilitate the preparation of tax returns and calculate the tax charge (if the company has opted for corporation tax).

Why use an accountancy firm for a real estate investment company (SCI)? 

The accounting obligations of real estate investment companies (SCI) are limited and using an accountancy firm may therefore appear unnecessary. However, proper advice from accounting and tax professionals is an essential component of real estate investing. As well as reliable accounting records that are enforceable vis-à-vis third parties, you have the advantage of specialist advice from a chartered accountant to help you grow your real estate assets in France.