Real Estate Tax Lawyer in Toulouse

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Based in downtown Toulouse, we provide services in French and English.


Appointments at the office or via video conference (FR/EN).

Tell us about your real estate tax project → response within 24 business hours.

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Real estate taxation covers every tax that applies to a property over its lifetime: when you buy it (transfer duties, VAT), while you own it (tax on rental income, property taxes, the French real estate wealth tax) and when you exit (capital gains tax, gift or inheritance tax). Each stage involves choices, and each choice shapes the next: the regime you pick for your rental income at the outset affects the tax on the capital gain when you sell.

As a real estate tax lawyer in Toulouse and Haute-Garonne, VV Avocat advises companies, investors, property dealers and developers, as well as individuals and non-residents, on every aspect of real estate taxation: LMNP/LMP furnished rentals, SCI (IR/IS), real estate VAT, capital gains, IFI, and tax audits and disputes.

Matters can be handled entirely in French or in English, in coordination with your notary and accountant, taking into account international tax treaties for expatriates and foreign clients.

Every transaction is documented to withstand a future tax audit.

Corporate Real Estate Taxation

Tax Advisory for Real Estate Professionals

We advise property dealers, developers, professional investors and owner-occupiers (operating real estate) on:

Taxation of Property Dealers

VAT on margin, resale deadlines, classification of works, inventory and provisions.

Development Operations

Real estate VAT, sales of lots, project SCCV/SAS, cost allocation, cost price.

Professional Furnished Landlords (LMP)

Registration, BIC actual regime, depreciation, social security implications, switching between LMP and LMNP.

Real Estate VAT

Works, self-supplies, option to tax, business and mixed-use premises, para-hotel services.

Operating Real Estate

Lessor/lessee scheme (intra-group professional/commercial leases), deductibility of rents, re-invoicing, service agreements.

Standard Deliverables

  • Note comparing tax regimes (IR/IS, actual/micro, VAT). - Tax clauses in leases/deeds. - Evidentiary file (works, invoices, photos, quotes) in anticipation of an audit.

Real estate VAT: when made by a taxable person acting as such, sales of building land and of buildings completed no more than five years earlier are automatically subject to VAT; after five years, the sale is exempt unless the seller opts to charge VAT. VAT is charged on the margin, not on the full price, when the seller's purchase of the property did not give rise to a right to deduct VAT (Article 268 of the French Tax Code, CGI), for example a land developer (lotisseur) reselling building plots bought from a private individual. The firm checks, transaction by transaction, which regime applies and how the taxable base is calculated.

Real Estate Taxation for Individuals

Income and Rentals

  • Rental income from unfurnished property: below €15,000 of annual rent, the micro-foncier regime applies a flat 30% allowance; above that threshold, or by election, the actual-expense regime lets you deduct expenses, loan interest and works (maintenance and improvement, never construction or extension). A property loss (déficit foncier), excluding interest, can be offset against your overall income up to €10,700 a year (€21,400 for certain energy-efficiency renovation works, subject to conditions). The firm models both regimes before you choose, because electing for the actual-expense regime binds you for three years.

  • Furnished rentals (LMNP/LMP): for long-term lets, the micro-BIC regime applies up to €77,700 of rental receipts, with a 50% allowance; for an unclassified furnished tourist let, the ceiling drops to €15,000 and the allowance to 30%. The actual regime allows depreciation of the property and the furniture; for sales made since February 15, 2025, depreciation deducted under LMNP status is, subject to conditions, taken into account when calculating the capital gain. Professional furnished landlord status (LMP) applies once rental receipts exceed €23,000 and also exceed the household's other earned income, with consequences for social security contributions and capital gains.

  • Works carried out by the tenant: improvements paid for by the tenant can be taxable income for the landlord. Read how the landlord is taxed when the tenant carries out works.

Companies & Ownership

  • Income from real estate companies (SCI/holding): distributions, shareholder current accounts, shareholder agreements, occupancy and expense agreements.

Capital Gains, Estate Planning, Wealth

  • Real estate capital gains: your main residence is exempt; on other properties, the gain is taxed at 19% income tax plus 17.2% social charges, after a holding-period allowance (full exemption from income tax after 22 years, from social charges after 30 years). An additional tax of 2% to 6% applies when the taxable gain exceeds €50,000. Construction, reconstruction, extension or improvement works increase the purchase price if they are backed by invoices: the evidence file has to be built before the sale, not after. Non-residents sometimes have to appoint a tax representative.

  • Worked example (fictitious, for illustration only): a Toulouse apartment bought for €200,000 and sold for €280,000 after ten years qualifies for a 30% allowance for income tax (6% a year from the sixth to the tenth year) and 8.25% for social charges; even before purchase costs and works are taken into account, the gain taxable to income tax falls from €80,000 to €56,000.

  • Inheritance and gifts: split ownership (usufruct and bare ownership), family agreements, contributions to an SCI, equalization payments. See the wealth taxation page for allowances and estate planning.

  • IFI (real estate wealth tax): due when your net real estate assets exceed €1,300,000 on January 1, with a 30% allowance on your main residence. The firm checks the calculation, deductible debts, valuations and the exemption for business assets.

Taxation of Real Estate Companies (SCI, SCCV, SCPI/OPCI, groups)

Structuring & Governance

  • SCI taxed under income tax (IR) or corporate tax (IS): under IR, the company is tax-transparent; each partner reports their share of rental income, and a sale falls under the capital gains rules for individuals, with their holding-period allowances. Under IS, the SCI depreciates the building and pays corporate tax (15% on the first €42,500 of profit for eligible SMEs, 25% above that), but the capital gain on a sale is calculated on net book value and distributions are taxed a second time. IS suits a long-term strategy of reinvesting profits; IR suits family ownership with a sale in view. Detailed comparison in our article SCI under corporate tax: advantages, tax pitfalls and rental income.

  • SCCV / project companies (development): choice of legal form, VAT, cost allocation, program exit.

  • Groups: real estate holding company, regulated agreements, intra-group real estate transfer pricing.

Obligations & Declarations

  • 3% tax (on the market value of properties): exemption analysis, preparation and filing.

  • SCI tax return / DAS-2 / non-resident forms: secure, compliant filings.

Real Estate Transactions: Study, Structuring, Negotiation, Transfer

Profitability Study & Tax Strategy

  • Business case: rents, expenses, financing, Toulouse scenarios (Capitole, Carmes, Compans, Lardenne districts).

  • Strategy: direct ownership / LMNP / SCI (IR/IS) / commercial company (SAS/SARL) ownership according to objectives (cash flow, estate planning, resale).

Structuring & Negotiation

  • Tax clauses in preliminary sale agreements and leases (indexation, works, recoverable charges, security).

  • Negotiation of investment/transfer to optimize the tax base and VAT.

Sale / Exit

  • Sale structures (asset deal or share deal), capital gains clearance, timing, documentation of works and expenses, tax representative if applicable.

Special for Expats & English-speaking Clients (English-speaking real-estate tax)

Why choose us?

  • FR/EN meetings, bilingual documents, clear explanations of French rules.

  • Consideration of tax treaties (double taxation), tax residency, and departure/arrival years.

  • Coordination with notary / chartered accountant / tax advisor abroad.

  • Frequent topics: non-resident capital gains, withholding tax, social charges (CSG-CRDS), IFI for non-residents, LMNP vs SCI for non-residents.

Quick wins

  • Solid works file = optimized capital gains.

  • Properly configured LMNP depreciation = secured cash flow.

  • IFI: documented debts/valuation = reduced risks.

  • Controlled para-hotel VAT = reclassification avoided.

When should you consult a real estate tax lawyer in Toulouse?

Four typical situations. In each one, we work in the same order: understand your objective, put figures on each option, and document the chosen route so that it stands up to the tax authorities.

You are buying a rental property and are unsure how to hold it

Situation: direct ownership, LMNP, an SCI taxed under income tax or corporate tax, or a commercial company. What the firm does: a costed comparison over your planned holding period (tax on rental income, available cash flow, tax on resale, estate planning). Next step: drafting or reviewing the articles of association and the tax clauses of the deed with your notary.

You are selling with a large capital gain

Situation: second home, rental property, land, SCI shares. What the firm does: calculation of the gain and the allowances, rebuilding the works file, review of the available exemptions, choice between selling the property and selling the shares, appointment of a tax representative for non-residents. Next step: a sale timetable and the documents to hand to the notary.

You are a real estate professional and VAT or resale deadlines worry you

Situation: property dealer, developer, land developer, professional furnished landlord. What the firm does: securing your VAT position (margin scheme, option to tax, self-supply), classification of works, monitoring of resale commitments, para-hotel activity. See our analysis of VAT on margin and the free transfer of land to the municipality. Next step: a written opinion documenting the position taken, useful if you are audited.

The tax authorities are questioning your rental income or your SCI

Situation: a request for information, a tax audit notice or a proposed reassessment (proposition de rectification) concerning rents, deducted works, a capital gain or real estate VAT. What the firm does: a reasoned response within the deadline, supporting documents, negotiation, then litigation if needed. Details on the tax audits and litigation page. Next step: an initial consultation, at the office or by video call, under the firm's fee arrangements.

Official texts and sources

FAQ - Frequently Asked Questions Real Estate Taxation

LMNP or SCI: which should I choose?

LMNP suits direct ownership with depreciation under the actual-expense regime; an SCI makes it easier to hold and transfer the property and to bring in partners. Opting for corporation tax (IS) can be relevant to retain earnings. The right choice depends on your objectives and your resale horizon.

Construction, reconstruction, extension and improvement works (excluding maintenance), supported by invoices in the owner’s name. We put together the evidentiary file.

Income and capital gains from French sources are taxable in France, then adjusted by the applicable tax treaty (tax credit, minimum rate, tax representative).

Identify deductible debts, justify the valuation, verify eligibility for professional assets, and document tax residency.

The capital gain is the difference between the sale price and the purchase price, the latter increased by purchase costs and documented works. It is then reduced by the holding-period allowance and taxed at 19% income tax plus 17.2% social charges, with an additional tax of 2% to 6% where the taxable gain exceeds €50,000. The notary calculates and collects the tax when the sale completes; the firm steps in beforehand to secure the works file and check the exemptions.

Income tax falls away after 22 years of ownership (a 6% allowance per year from the sixth to the twenty-first year, then 4% in the twenty-second). Social charges only fall away after 30 years (1.65% per year from the sixth to the twenty-first year, 1.6% in the twenty-second, then 9% per year). Your main residence is exempt whatever the holding period.

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Further reading