Fractional Ownership in Paris
September 6, 2007
I have been involved in the marketing of property in fractional ownership in France and started the first information website www.harmonyownership.com about this interesting way of sharing the real freehold of a property in France early last year.
However, I decided not to jump in the deep end until I had thoroughly researched many of the tax and legal implications fractional ownership has in France. I believe the ways that many offers are being made and the way shares and ownership is structured through American or British companies is going to cause serious problems for the shareholders in a few years time due to the French tax rules.
One person I am following closely and who I believe is offering a very fair and well structured fractional ownership of Paris apartments is an American in Paris, Steve Navaro - you can see his offers through his website at parishomeshares
I plan to be in Paris in the next couple of weeks for a few days, one reason for my visit is to meet Steve and I will report about him and his property offers in this blog
Comment by Patricia Eachus
Aloha,
Regarding “Fractional ownership”. We are just now listing our luxury home in Hawaii as a Fractional onr Interval ownership. Our San Francisco based attorney actually lives in Paris. He is a very well versed attorney in International law and may be a superb contact for you.
His name is Andrew Sirken. I do not have a Paris contact number but you can easily find him on the Internet, he has written many papers on Fractionals or Interval ownership.
I would highly suggest you make a contact with him as you continue to research the viability of French Fractionals. It is important to us, as we would consider doing a “Fractional exchange” for 60 days of our Hawaii house for one in Paris. We don’t want to get ourselves into something that would have serious implications because of french tax rules.
Patricia Eachus
Comment by Tony
Hello Patricia,
I have has a long email exchange recently with Andy Sirkin, and we agree to differ, although we are in accord on many points - I will be editing and publishing our exchanges as it touches on some very important points relating to Fractional ownership in France.
My personal experience is that if you create an offshore company to hold the shares of a French property company, you are makng big future problems for yourself with taxes - capital gains, corporation, personal and business taxes.
The point we agree on is that any rentals done by any of the owners must not be anything to do with the property company. My opinion is that this makes third party rentals (or exchanges) impossible without incurring tax liabilities.
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