Legal structure for gite business and property purchase

mattleigh
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We are a British couple resident in France since Oct’ 2020, classed as inactif, currently un-married or PACs with no children yet, wishing to establish an Accessible Rural Holidays company.

We own our home which consists of our house and an attached outbuilding which will become an accessible gite in the near future (2-4 years) following renovation works.

We are also in the process of buying a second investment property to rent as a gite from the end of summer, also following renovation/decoration works. We anticipate €50k renovation costs for this new purchase and gross income of circa €15-20k initially. We sign the final contract on 20th March with a clause to allow us to alter the purchase regime before then.

We are looking at our best options in terms of buying the property and ultimately running the business.

Our main hopes are to:

- Both contribute to a future pension via social charges etc
- Protect our personal liability and the two properties from any potential future acquisition if the business were to ever have catastrophic issues
- Be the most tax efficient we can be

Depending on the purchase/business structure we also hope to:

- Offset the initial renovation and longer term running costs (of both gites)
- Reduce TVA on renovation/redecoration costs
- Be able to access funds from SCI rental (if applicable)
- Be reimbursed any initial capital investment (if applicable) once business is profitable
- Avoid paying exorbitant registration/annual accountancy fees
- Limit capital gains tax if we have to resell the second property in the future

Our question - out of the options advised to us below, which would you recommend in our situation and why?

1. Buy PRIVATELY and run Gite as an ME /ME plus conjoint collaborateur (then maybe change to Sarl in future)
2. Buy as SCI and run as ME / as above with a rental/contract between
3. Buy as SCI and run business as SARL under IS with a rental/contract between
4. Buy as SARL and run business as SARL under IS
5. Get Pacsed and buy and run as SARL Familial under IR
6. Buy as SCI, run as ME (later get PACSed and change to SARL Familial under IR)  with a rental/contract between
7. Any other options !?

We would really appreciate any help or insight as we seem to be going round in circles!

5 replies so far...
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