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Subirats Avocat

Individual Taxation

Optimize and safeguard your personal and estate taxation

Individual taxation covers income tax, real estate wealth tax (IFI), capital gains, as well as estate planning and wealth management. We advise you on reducing your tax burden and securing your transactions with the tax authorities.

Personal Income Tax (PIT)

Understanding the taxation of your personal income

1. What is it?

Personal Income Tax (PIT) applies to most income earned by an individual: salaries, pensions, rental income, business profits, dividends, etc. Each type of income is subject to its own tax rules.

2. Who is concerned?

Any individual receiving income: employees, self-employed professionals, retirees, landlords, investors. Each situation is unique and may be optimized.

3. Why is it important?

Poor understanding of the rules can lead to excessive tax payments. Common mistakes include:

  • Failure to claim deductions (actual expenses, alimony, renovation works).
  • Incorrect choice of regime (simplified vs. standard).
  • Misreporting of exceptional or deferred income.

4. What we do for you

We assist you in:

  • Filing your income accurately.
  • Identifying possible optimizations.
  • Securing your returns to avoid reassessments.

Real Estate Wealth Tax (IFI)

Declare and optimize your real estate assets

1. What is it?

The Real Estate Wealth Tax (IFI) applies to your net real estate assets as of January 1, if their value exceeds €1.3 million. It includes directly held properties, shares in real estate companies (SCI, SCPI), real estate rights, and split ownership. The tax is calculated on net value (gross value minus deductible liabilities).

2. Who is concerned?

Any individual whose net real estate assets exceed the €1.3 million threshold.

3. Why is it important?

Incorrect valuation or omission may lead to a tax reassessment. Certain assets (e.g., business property) may be exempt, and estate planning strategies (split ownership, corporate structures) can reduce the taxable base. Deductible liabilities are strictly regulated.

4. What we do for you

We assess your assets, identify possible exemptions and optimizations, and prepare a compliant and tax-efficient return.

Wealth Planning

Structure your wealth for the future

1. What is it?

Wealth planning involves analyzing the composition and value of your assets, defining your objectives (spouse protection, inheritance planning, retirement preparation, etc.), and selecting the appropriate structures (real estate companies, holding companies, split ownership, gifts, life insurance, etc.).

2. Who is concerned?

Any individual wishing to optimize the management and transfer of their wealth.

3. Why is it important?

Proper planning allows you to:

  • Avoid blockages in the event of death or unforeseen circumstances.
  • Minimize taxation (inheritance tax, real estate wealth tax, income tax).
  • Prepare for the future with peace of mind (gifts, spouse protection, succession planning).

4. What we do for you

We analyze your situation and objectives, identify suitable solutions, and assist you in their implementation. Your taxation should be planned, not endured.

Real Estate Taxation

Optimize your real estate income and investments

1. What is it?

Real estate taxation concerns the taxation of built or unbuilt property you own. It covers:

  • Rental income (unfurnished, furnished, real estate companies).
  • Real estate capital gains upon sale.
  • Real estate VAT applicable to certain properties.
  • Registration duties and acquisition-related costs.

2. Who is concerned?

Any individual owning real estate and/or generating real estate income.

3. Why is it important?

Every wealth management decision has tax consequences. Proper understanding of the rules helps avoid overpayment, secure real estate projects, and enhance asset value. For example, the sale of a secondary residence is taxable on the capital gain (subject to exceptions), with available holding-period allowances.

4. What we do for you

We advise you prior to any transaction, analyze the most advantageous regimes, and assist you with your filings or disputes with the tax authorities.

Gift and Inheritance Tax

Anticipate and optimize the transfer of your estate

1. What is it?

Gifts and inheritances are subject to transfer duties free of charge (DMTG), calculated on the value of the assets transferred and the relationship between the parties. Inheritances concern assets transferred upon death, while gifts cover transfers made during one’s lifetime. Specific regimes and exemptions exist (allowances, transfer of bare ownership, Dutreil Pact, life insurance).

2. Who is concerned?

Any individual wishing to transfer or receive assets, as well as heirs and beneficiaries.

3. Why is it important?

Without planning, heirs may face high transfer taxes and even be forced to sell assets. A well-prepared strategy allows:

  • Optimization of allowances and exemptions.
  • Securing the transfer of businesses and family assets.
  • Reducing tax through staged transfers (successive gifts).
  • Protecting a spouse or child.

4. What we do for you

We carry out a tax impact analysis, help you structure your transfer, draft the necessary instruments, and liaise with your notary or banker where needed.

Personal Tax Audit

Review your tax situation

1. What is it?

A personal tax audit is a detailed analysis of your situation (income, assets, past filings) to identify risks, omissions, and possible optimizations. It ensures the proper application of tax rules and helps anticipate potential risks.

2. Who is concerned?

Any individual seeking a clear overview of their tax situation and assurance of compliance.

3. Why is it important?

A tax audit may cover the past 3 years (or even 6 to 10 years). It is better to regularize voluntarily than to face reassessment. A tax audit clarifies your choices and enables informed decision-making.

4. What we do for you

We review your entire tax situation, identify weaknesses and opportunities, and provide you with a simple, clear, and compliant action plan.

Social and Tax Status of Company Directors

Choose the status best suited to your goals

1. What is it?

The social and tax status of a company director determines contributions, entitlements, and taxation. It depends on the company’s legal form (SARL, SAS, SCI, etc.), the type of mandate exercised (president, majority or minority manager, shareholder or not), and the form of remuneration (salary, dividends, benefits in kind).

Two main regimes exist:

  • General social security scheme (assimilated employees): Applies to presidents of SAS/SASU, minority/equal managers of SARL, non-shareholder directors of SCI/SNC. Provides social protection similar to employees (healthcare, pension, disability), but no unemployment insurance. Contributions are high (up to 80% of net salary).
  • Self-employed workers scheme (TNS): Applies to majority managers of SARL, shareholder-managers of SCI, non-salaried directors of SNC. Lower contributions (around 35–45% of net income), but more limited social coverage, requiring supplemental contracts (Madelin law, insurance, pension).

2. Who is concerned?

Any company director or business owner who must choose or optimize their social and tax status.

3. Why is it important?

An unsuitable status or poorly structured remuneration may result in:

  • Excessive taxation or overly burdensome social contributions.
  • Insufficient social protection.
  • Reclassification risks by URSSAF or the tax authorities.
  • Personal liability.

The choice also impacts dividend taxation (social charges on SAS dividends, social contributions on SARL dividends exceeding 10% of capital) and governance (SAS offers more flexibility but is more costly, SARL is more rigid but cheaper).

4. What we do for you

We analyze your situation and objectives to choose the most appropriate status and optimize your remuneration. We ensure compliance with applicable rules and anticipate changes to secure your future.

International Tax Obligations

Anticipate the tax consequences of your international mobility

1. What is it?

A change of tax residence (entering or leaving France) entails specific reporting obligations and taxation on a partial or worldwide basis, depending on your residency status. This may include taxation of unrealized capital gains (exit tax) and consequences for accounts, contracts, and assets held abroad.

2. Who is concerned?

Any individual changing their country of tax residence, whether moving to France or leaving it.

3. Why is it important?

Anticipating these changes helps avoid:

  • Double taxation.
  • Reporting omissions and penalties.
  • Missed opportunities to optimize taxation (e.g., before a sale or investment).

4. What we do for you

We help you anticipate and secure your tax situation during international mobility, ensuring you understand your obligations and optimize your tax position when leaving or settling in France.

Investment Income (Dividends and Interest)

Manage the taxation of your financial investments

1. What is it?

Investment income includes returns from financial assets: share dividends, bond interest, interest from savings accounts (excluding regulated accounts), capital gains on securities sales, etc. They are subject to specific tax rules, often under the Flat Tax (Prélèvement Forfaitaire Unique – PFU) or, upon election, under the progressive income tax scale.

2. Who is concerned?

Any individual holding financial investments that generate income or capital gains.

3. Why is it important?

The taxation of investment income is complex and varies significantly depending on the type of investment, the holding period, and the chosen regime (PFU or progressive scale). Proper understanding helps optimize net returns and avoid reporting errors. Certain schemes, such as the PEA or life insurance, offer favorable tax treatment under specific conditions.

4. What we do for you

We analyze your investments, advise you on the most suitable tax regime (PFU or progressive scale), and help optimize the taxation of your financial income while ensuring compliance with reporting requirements.

Real Estate Rental Income

Report and optimize your rental income

1. What is it?

Real estate rental income refers to rents collected from the leasing of unfurnished properties (apartments, houses, land). They are taxable under the real estate income category and may be subject to either the micro-foncier regime or the standard regime.

2. Who is concerned?

Any individual owning unfurnished rental property.

3. Why is it important?

Choosing between the micro-foncier regime (30% flat allowance) and the standard regime (deduction of actual expenses such as loan interest, renovation works, taxes, etc.) is key to optimizing taxation. A wrong choice can lead to a significant additional tax burden. Proper reporting of rental income is essential to avoid reassessments.

4. What we do for you

We help you choose the most advantageous tax regime for your rental income, optimize your deductions, and secure your filings to maximize your net return.

Furnished Rental Income

Understanding the taxation of furnished rental income

1. What is it?

Furnished rental involves leasing a property equipped with the necessary furniture for occupancy. The income generated is taxed under the Industrial and Commercial Profits (BIC) category, not under real estate income. Two main regimes apply: the micro-BIC regime (flat-rate) and the standard regime (deduction of actual expenses).

2. Who is concerned?

Any individual renting out furnished property, either occasionally or on a regular basis (Non-Professional Landlord – LMNP or Professional Landlord – LMP).

3. Why is it important?

Under the standard regime, furnished rentals allow depreciation of the property and furniture, which can create tax losses and significantly reduce—or even eliminate—tax on rental income for many years. Choosing the right regime is crucial and must be tailored to your situation to optimize taxation and avoid costly mistakes.

4. What we do for you

We help you choose the most advantageous tax regime (micro-BIC or standard), optimize depreciation and deductible expenses, and secure your filings to maximize the profitability of your furnished rental investments.

Split Ownership: Usufruct and Bare Ownership

Optimize estate planning and asset management

1. What is it?

Split ownership divides full ownership of an asset into two distinct rights: usufruct (the right to use the asset and collect income from it) and bare ownership (the right to dispose of the asset, i.e., sell or transfer it, but without current use or income). This mechanism is often used in the context of gifts or inheritances.

2. Who is concerned?

Owners of assets (real estate, movable property, company shares) seeking to organize the transfer of their estate during their lifetime or upon death, as well as the beneficiaries of such transfers.

3. Why is it important?

Split ownership allows optimization of transfer taxation by reducing the taxable base for gift or inheritance duties. For example, gifting bare ownership enables a transfer at a lower tax cost, since duties are calculated only on the value of bare ownership. Upon the usufruct holder’s death, the bare owner automatically recovers full ownership without additional duties. It is a powerful tool for estate planning and spousal protection.

4. What we do for you

We advise you on the relevance of split ownership for your wealth planning, help you understand its legal and tax mechanisms, and support you in implementing such arrangements to secure and optimize the transfer of your assets.

Regularization of Foreign Accounts

Bring your foreign assets into compliance

1. What is it?

The regularization of foreign accounts concerns the tax compliance of assets held abroad (bank accounts, life insurance contracts, trusts, etc.) that have not been declared to the French tax authorities. Specific schemes previously encouraged such regularizations, but today the process takes place under stricter rules, with penalties for non-compliance.

2. Who is concerned?

Any French tax resident holding undeclared assets abroad.

3. Why is it important?

Failure to declare foreign assets exposes you to severe penalties: fines, tax surcharges, and even criminal prosecution. With the automatic exchange of information between countries, detection of these assets is increasingly easy for the tax authorities. Regularization enables compliance, risk mitigation, and protection of your assets.

4. What we do for you

We guide you through the regularization of your foreign assets by analyzing your situation, assisting you in gathering the required documentation, and representing you before the tax authorities to minimize penalties and secure your position.

Local Taxation

Understand and optimize your local taxes

1. What is it?

Local taxation mainly includes housing tax (taxe d’habitation) and property tax (taxe foncière). Housing tax is payable by the occupant of a dwelling as of January 1 of the year, whether owner, tenant, or occupant free of charge. Property tax is payable by the owner of a built or unbuilt property as of January 1 of the year.

2. Who is concerned?

Any individual occupying a dwelling (housing tax) or owning real estate (property tax).

3. Why is it important?

These taxes represent a significant share of housing or ownership costs. Exemptions or reductions are available under certain conditions (low income, elderly individuals, vacant housing, etc.). Proper knowledge of the rules helps optimize the amount due and verify the accuracy of tax assessments.

4. What we do for you

We review your situation to check your eligibility for exemptions or reductions, assist you in contesting undue assessments, and advise you on optimizing your local taxation.

Overseas Taxation

Tax specificities of the Overseas Territories

1. What is it?

Overseas taxation refers to the specific tax rules applicable in French overseas departments and regions (DROM) and overseas collectivities (COM). These territories often benefit from preferential regimes aimed at encouraging investment and local economic development. This may include tax reductions, exemptions, or credits for certain investments (e.g., Pinel Outre-mer, Girardin schemes).

2. Who is concerned?

Individuals and businesses residing or investing in the overseas territories, or carrying out economic activities there.

3. Why is it important?

Overseas tax schemes can provide significant tax optimization opportunities, but they are often complex and subject to strict conditions. Misapplication of the rules may result in the loss of tax benefits and reassessments. It is crucial to fully understand these specific rules to secure investments and income.

4. What we do for you

We advise you on applicable overseas tax schemes, help you structure your investments to maximize tax benefits, and ensure compliance with reporting obligations to secure your operations.

Cryptocurrency Taxation

Navigate the taxation of digital assets

1. What is it?

Cryptocurrency taxation covers the tax treatment of gains realized from the purchase, sale, exchange, or use of digital assets. In France, capital gains from disposals of digital assets are generally subject to the 30% flat tax (PFU) — 12.8% income tax and 17.2% social contributions — under certain conditions. Income from mining or transaction validation may be taxed differently.

2. Who is concerned?

Any individual holding or transacting in cryptocurrencies (Bitcoin, Ethereum, etc.), whether occasionally or on a regular basis.

3. Why is it important?

Cryptocurrency taxation is a recent and constantly evolving field, often complex to navigate. Misreporting or lack of awareness of the rules can lead to significant tax reassessments. It is essential to understand taxable events (conversion into fiat currency, exchange between cryptocurrencies), calculation methods, and reporting obligations (including declaration of foreign digital asset accounts).

4. What we do for you

We help you understand the applicable tax rules for your cryptocurrency transactions, calculate your capital gains or losses, and complete the required tax filings to secure your situation and avoid compliance risks.

Tax Reductions and Credits

Reduce your tax burden through available schemes

1. What is it?

Tax reductions and credits are mechanisms that lower the amount of personal income tax owed by individuals. A tax reduction directly decreases the tax due but cannot generate a refund if it exceeds the liability. A tax credit, on the other hand, may result in a refund if it exceeds the amount of tax owed.

These measures encourage certain expenses or behaviors, such as:

  • Donations to charities.
  • Childcare expenses.
  • Hiring domestic help (personal services tax credit).
  • Real estate investments (Pinel, Denormandie schemes).
  • Energy efficiency renovation expenses (MaPrimeRénov’, CITE).
  • Trade union dues.

2. Who is concerned?

Any French taxpayer incurring eligible expenses or in a situation that entitles them to a tax benefit.

3. Why is it important?

Failure to use these mechanisms may result in paying more tax than necessary. Proper identification and application of tax reductions and credits can significantly optimize your personal tax situation and reduce your overall liability while remaining fully compliant.

4. What we do for you

We review your situation and expenses to identify all reductions and credits for which you are eligible. We assist you in gathering the necessary supporting documents and ensure proper reporting to maximize your tax benefits and secure your filings.

FAQ

The Real Estate Wealth Tax (IFI) can be optimized through estate structuring: split ownership, incorporation into a company (SCI subject to CIT), or exemptions for business assets. However, every arrangement must have a genuine economic purpose to avoid requalification for abuse of law.

Since 2018, dividends and interest have been subject to the 30% flat tax (PFU). In some cases, opting for the progressive income tax scale (with a 40% allowance on dividends) is more favorable. The choice must be made based on overall income and marginal tax bracket.

An expatriation often triggers the application of bilateral tax treaties. France applies an exit tax on unrealized capital gains if the taxpayer held more than 50% of voting rights or a portfolio exceeding €800,000. Returning to France may entitle individuals to favorable regimes (impatriate regime).

Tax reduction schemes include:

  • Real estate investment (Pinel, Denormandie, Malraux, Historical Monuments).
  • SME investments (IR-PME reduction of up to 25% of the investment).
  • Charitable donations (reduction of 66% to 75%).

These schemes are capped at €10,000 per year (or €18,000 for certain overseas schemes).

Family allowances (e.g., €100,000 per parent and per child, renewable every 15 years) allow for anticipation. The Dutreil Pact reduces the taxable value of a transferred business by 75% subject to holding requirements. Shared gifts (donations-partages) and split ownership arrangements are also effective tools.

High-risk profiles include:

  • Underreported rental income or business income (BIC).
  • Incorrectly declared real estate wealth subject to IFI.
  • Undeclared bank accounts or digital assets (fine of €1,500 per account, €10,000 if held in a non-cooperative state).

Proper documentation and regular monitoring help secure one’s tax situation.

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