hastobe

[quote user="Will the Conqueror"]We always advise people to take professional advice. That advice stands, but make sure you choose a qualified and suitably knowledgeable professional, who comes on recommendations of others, rather than dubious self-publicity. [/quote] Exactly Will -  'accountant' (French or English) does not necessarily equal expert in expat tax (of whatever flavour) - in fact 'accountant' doesn't necessarily mean expert in tax period!  I wasn't trying to be antagonistic to Nick - just trying to point out that to the OP'er (in general terms) some of the particular issues that would arise from using a UK company.  Btw Nick - I'm also pretty experienced - currently acting group head of tax for a pretty well known bank and was previously a senior manager working in international tax for a large office of one of the big four international accounting firms.  Experience was primarily US, Danish and German tax but also did some French tax work.  I've also been in the profession for twenty plus years.  Hastobe

Nick, you say that English accountants / tax advisors do not understand international (aka French) law and cross border transactions but applying that logic a French accountant would also be useless as they wouldn't necessarily understand the UK tax implications of a particular arrangement. (No offence Nick!!) There are a whole range of accountants (both in France and the UK) ranging from those who are best left to preparing basic accounts for small businesses / dealing with straightforward domestic tax liabilities to those who are competent in dealing with very complex business and tax issues and a whole range in between.  You pay your money and take your choice.  If your affairs are more complex, my advice would be not to go for a cheaper local accountant but use an office of a larger practice - whether that be in France or UK.  Imho - there are very few easy loopholes to avoid tax or compliance with regulations - most are wishful thinking and hearsay! Hastobe

We are looking to buy a property in SW France and are thinking of buying via a notaire.  Has anyone here done this and what advice would you give?  Also re the fees we noticed a number of notaires quote prices as 'honoraires de negociation inclus' - what does this mean?  Is this includive of an 'agents fee' for the notaire - does it include notaires fees as well? Any info would be appreciated. Hastobe

Even if your company is resident in the UK (and you would have to be able to prove that all management and control decisions were made in the UK -  i.e. directors/key staff etc resident in UK and holding meetings in the UK) you would still be liable for French taxes.  Under the terms of the UK: French double tax treaty if you have an office or even an agent in France who has the authority to conclude transactions (take orders / agree terms etc etc) then you would have a 'permanent establishment' aka a French branch.  Any activities (read profit) of this French 'branch' would be taxed as though it was a company resident in France.  The UK company would then be subject to UK corporation tax on all its profits (including those of the French branch) but it would get relief for any tax paid in France  - to the extent that it was less than the UK tax due.   So in actuality you would make your affairs more complex. Other considerations - if your UK company owns property and has less than five shareholder (broadly!) it could be classed as a 'close investment holding company' and so automatically pay the full rate of corporation tax.  It would have certain other reliefs denied to it - substantial shareholdings relief/business assets relief/certain IHT reliefs.  In addition, using a company to own property is something you should do with care as gains made on any properties could be taxed twice - once in the company when the property was sold and again when the profits were extracted from the company.  In addition if any employees (e.g. directors) of the company (or, in some cases, family members) used the French property (say for holidays) then the director/employee could be liable to UK tax on the 'benefit in kind' (I say could, as it would depend on other things such as relationship with director, any amounts paid for the use, levels of UK income etc etc). Btw - am new here - hello everyone :) Hastobe