Why you Should Domicile your Real Estate Company?

1
min read
A- A+
read so far

As a savvy investor, you have decided to create a real estate company to manage your properties.

This type of company is indeed the most appropriate vehicle for driving your brick investment policy.

AFTER YOUR FIRST PURCHASE

When acquiring your first property, it is natural to domicile your company in the address of such property. However, the downside is that, if this is your first real estate purchase, the seller won’t be willing to let you make use of his address until the sale is definitively concluded. It is then impossible to establish the headquarters of your society at your future address.

You can also domicile your real estate company at your current address, as long as you are the director of the company. Indeed, only the director can domicile his business at his private address. This isn’t an option for the associates.

Note that you will need to add the name of your company to your letterbox in order to receive your mail. While this is a completely valid option in legal terms, it implies, however, that your neighbors will necessarily know about the existence of your company.

Nevertheless, this becomes problematic if your primary residence is the one you have decided to sell so as to buy your new property. This situation is relatively common in France. In fact, the French tax system favors the purchases / sales of the principal residence rather than the operations related to second homes. At this point, it’s important to know that a rental investment is considered as such.

FOR YOUR RENTAL INVESTMENTS

Once your first real estate company has been created, you can accumulate as much real estate as you wish, regardless of their respective addresses. It’s at this point when a professional domiciliation service becomes a real management tool. It is not worth it to create another company, unless you want to have different associates or another proportion of capital than those in the first one. A domiciliation address, fixed and durable, allows you to manage all your property from a central administrative address.

CONCLUSION

The domiciliation of a real estate company is particularly relevant if you have decided to invest in different properties and want a flexible management of your real estate portfolio. In addition, especially if your enterprise is subject to a corporate tax, it’ll be possible for you to add the expenses of the domiciliation to your tax result.