DB Posted September 26, 2006 Share Posted September 26, 2006 Does anyone know if it's possible for a UK Limited Company to own a property in France rather than in the name of a person. If so, would this get round the inheritance issues.Thanks Link to comment Share on other sites More sharing options...
hastobe Posted September 26, 2006 Share Posted September 26, 2006 Yes and possibly - but you would open up a whole new can of worms...Kathie Link to comment Share on other sites More sharing options...
Will Posted September 26, 2006 Share Posted September 26, 2006 I don't know for certain, but an educated guess, based on some other aspects of French company law, is that it would need to establish a French subsidiary in order to do this. As such it would be unlikely to get round the inheritance issues, which seem to take precedence over most other laws. I have heard of offshore companies being used, but I believe there are many difficulties involved, due to trusts being incompatible with French law and, like French SCI companies, they offer fewer benefits to French residents. You would need to talk to a specilaist, but I would have thought that if such a solution was either possible or feasible it would already be used. Link to comment Share on other sites More sharing options...
Llwyncelyn Posted September 26, 2006 Share Posted September 26, 2006 As a lawyer I can say that the answer is yes but if the company is formed with the intent of getting around the inheritance laws in France the answer is no. Again the company would not and could not use the property but those Directors owning the share capital would. Thus benefits in kind that sort of thing. In any event the company would have to have a purpose and however widely you think you can draft the M & A's you cannot draft them in such a way as to get around what is reality here in France. You can well imagine that I have been down this route especially as I do not have children but my wife has two children from previous marriages.SCI prove difficult. If I could have found a way around this then I would have. I do not think it is posssible.On this forum there are quantums of advice on this point and in line with other contributors my advice would be to seek professional advice. It is a huge step to take without understanding the system! rdgs Link to comment Share on other sites More sharing options...
DB Posted September 26, 2006 Author Share Posted September 26, 2006 Hmm, thanks for the information. I think I will following this up further with professioanl advice as my property is rented out most of the time. I not really looking for a way around the inheritance issues but thought I could create a small UK company with that could expand with more properties. This would be detailed in the M & A's of course. And if this helps with the I issues then all the better for it.Thanks again. Link to comment Share on other sites More sharing options...
Pickles Posted September 27, 2006 Share Posted September 27, 2006 It's not clear from your post whether you are resident in France or the UK. If in France, then I am pretty certain that your direct ownership of a foreign company will mean that it (the company) falls within your French estate, in which case you will not have affected your inheritance position (nor your ISF position) ie the value of the property will effectively still form part of your estate (via the value of the business). If you are resident in the UK, then IIRC the property will be owned by the company and will be outside of your French estate, but part of your UK estate instead, which may achieve what you wish.As is usual in these things, this advice is worth exactly what you have paid for it and I stand to be corrected by more knowledgeable people.Pickles Link to comment Share on other sites More sharing options...
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