Hi All. We are buying in the Haute Pyrenees with an aim to run a “casual” chambre d’hote business. Should we set up an SCI, and what tax and business benefits would it give us? We have UK wills, pensions, property and families, but not looking to give the French property to our children immediately (second marriages each) unless we both die in the same skydiving incident. All information appreciated. Kind regards R&K.
P.s. I was going to post this earlier but got distracted by the humour page. Thankyou.
I’d speak to a good notarie or accountant.
Buying it Tontine will mean you can ensure on 1st death the other spouse inherits the property fully. This means essentially you cut the children out of the inheritance of the 1st person to die. The property then passes to the surviving spouse heirs.
You can but it jointly and add a life interest “Usufruct” which means that on 1st death the heirs of the deceased inherit their part but can’t access it until the surviving spouse dies or sells.
SCI is probably overkill for your situation and will involve tax returns and a company accountant etc… it would be easier to do one of the above and declare income through URSAFF for the B&B.
If you want planning help I can recommend a very good English speaking notaire.
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Hi Rod,
Setting up an SCI is often a smart choice for transferring real estate to children and reducing taxes. However, based on your situation, it doesn’t seem relevant, as you don’t appear to be significantly impacted by these concerns. Additionally, the associated costs (SCI creation, accounting, etc.) might outweigh the benefits for you.
If you have any other questions about creating your chambres d’hôtes business, feel free to ask—I’d be more than happy to help!
Thanks Costorm. I do have two daughters who we would eventually give the property to, but even if we buy in tontine, there may be a possibility of them requesting “their” inheritance immediately, as is the want of the selfish under 30s these days. The chambre d’hotes is modelled on running cycling holidays in the Pyrenees, as we have 4 large bedrooms spare and ample space to store bikes etc. Income generated from 2 months full occupancy is all we’re looking for, with friends and family members holidaying taking up a lump of time. Anything above 2 months would be considered a bonus, and not turned down. We also both ski, so will be occupied in the winter enjoying ourselves. Are there any traps for newcomers we should be aware of?
Many thanks, Rod
would welcome recommendations for english speaking notarie or accountant.
Thank you!