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More and more French investors are eager to take advantage of the opportunities that the American real estate market offers, especially because of the rental returns that are being stretched in France.
Investors benefit from attractive taxation and landlord protection against bad payers. For example, in the United States, a few weeks are enough to evict an insolvent tenant, whereas in France, it takes 18 months on average. Moreover, some American states can be severe towards these tenants and punish them with a prison sentence.
The majority of investors prefer the LLC USA for their real estate investment. This legal entity seduces by its flexibility in its operation and for the multiple advantages it offers.
The LLC shifts the risk of liability from the individual to the legal entity. The purpose for investors owning an LLC is to establish a watertight boundary between their personal assets and their real estate investment.
Second, the legal entity also exempts its owner(s) from criminal liability. Thus, if the company is seized with a legal action, the investor protects his personal assets.
Finally, the French tax authorities qualify the LLC USA as a semi-transparent tax entity. The American LLC is the ideal legal form to invest efficiently in the American real estate market. It allows, among other things, a separation of your private and professional assets. Moreover, you will be able to open a US bank account in the name of this entity, in order to benefit from the rental income. The LLC can be created with a single owner and manager, or you can also share the capital with other partners.
Our specialists propose to accompany you in the creation and in the annual maintenance of your American LLC. The latter will offer an advantageous and secure legal framework for your US real estate investment.
The best way to optimize your investment is to know the tax situation applicable to you. When our specialists prepare your tax returns, you will be able to identify the relevant deductible expenses.
In addition, U.S. tax law has mechanisms for deferring capital gains, allowing for considerable tax savings.
It is also possible to structure your legal scheme further. Indeed, in certain situations, the creation of a trust can be very interesting. The American trust has a lot of flexibility and will prevent potential conflicts, while protecting your assets perfectly.
Also, some providers charge unjustified costs when managing your company: abusive maintenance fees, annual postponement fees far from reality, etc. With Expert LLC USA, the costs are defined in advance and are clearly established. There are no nasty surprises.
Finally, Expert LLC USA's valuable banking partners can offer leverage through your American investment. In some cases, it will be possible (even for a non-American) to obtain a real estate loan to self-finance your American rental investment at very advantageous conditions.
Profits, income and capital gains of any kind received outside France must be declared by the French taxpayer. Foreign income is therefore taxable in France even if it has not been repatriated.
Income received abroad may in some cases be subject to double taxation. This means that the income may be taxed once in the foreign country of source and a second time in France.
In order to avoid this double taxation, France has concluded bilateral tax treaties with certain countries. For example, there is a convention between the United States and France, so you will not be subject to double taxation.
Moreover, French taxpayers who own real estate in the United States are required to declare their rental income first in the United States and then in France. The Franco-American tax treaty allows them to avoid double taxation thanks to a tax credit mechanism obtained in France. This tax credit is "equal to the French tax", according to article 24 of the French-American tax treaty.
Our entire team is at your disposal to answer all your questions!
