Buying in the United States, so in this case at home in Florida, in Miami, is very interesting since tax-wise there is no double-taxation under a treaty that has been signed in 1994 and amended, I believe, in 2004 and 2009. I believe so. So what needs to be paid, we pay it here in the U.S. but not in France.
The second thing, there is a tax on property income, rental income which is around 38 and 39%.
So, we deduct everything here. When we talk, for example, about a condo, we start by deducting everything we give; the maintenance that we give every month to the building. We will also deduct the property tax. That’s not bad actually, it’s a tax that cancels out another tax. so we can actually deduct the property tax.
For example, we deduct plane tickets, not 50. What is generally allowed, what’s allowed is 1 plane ticket per year and per shareholder or per homeowner.
But ultimately, we don’t really need that since you need to know that residential property here is depreciated over 27 and a half years.
So with all that, I guarantee you don’t pay much, if anything. The only thing that costs you is having an accountant do the work.
My clients often ask me this question; should I buy in my own name or as a company?
In fact, the benefit isn’t really tax-related but mainly in terms of liability. The benefit of buying as a company is that you limit your liability to the value of the property.
