Legal structure for property development with unrelated partner

MDC
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We are considering using some of our capital to invest in developing a new build house (2/3 bedroom) to then let in the long term. This will be as a location meuble.

We have identified (and have a reserve on) a plot on a local lotissment and have made enquiries with several construction companies.

We do not have the capital to finance the entire project and so have discussed a joint development with friends locally. This would be on a 50/50 basis with one partner from each couple. All of us are French residents.

We have established the fundamental aims of the development- which is to provide good quality accommodation as an investment for a minimum of 5 years.

Our questions relate to the corporate form and its implications. From our own research we understand that an SCI would not be suitable given that we are intending location meuble and that the projected income would not reach €23000.

1. What is the most effective, least complicated way to set up a partnership agreement between two unrelated people to buy the plot and to build the property?

2. What is the most effective and least complicated way to set up a partnership agreement between two unrelated people to run the property let?

3. Both potential partners in the development have existing businesses. For example we are both ME. Is it possible and is it tax efficient to add the rental business to my husbands’ ME at a later date?

4.OR are we required to (and would it be more efficient and more effective) to establish a joint business/company set up with the other person? If the latter is the case what are our options?

I realise you may not have the answers to all these questions yourself, but I hope you can provide some initial advice and links to follow up ourselves.

Many thanks Mel DC

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