SCI under corporate

We have one building (A) and have an offer accepted on another (B), yet to finalise. We are retired(ish).

Our plan is to convert parts of both buildings into Gites 3-5 in total. We live in part of A and will have a small commercial tenant (restaurant) in B that we are in the process of buying. Both A & B have potential for 2-3 Gites each. B also has the potential for another commercial space. It has been suggested we should rent the undeveloped parts and commercial lease area parts to a SCI à l’IS, that we set up and own. We plan to personally retain A (which is as it is now) and take personal ownership of the new purchase - Building B.

The thinking is we charge rent to the SCI à l’IS for the bare (unfurnished) buildings and the SCI à l’IS (funded through loans from us) does the development, operates the commercial lease and Gites and pays us rent and loan repayments. We are led to believe this is advantageous from a tax (corporate rate), depreciation (all in the SCI) and risk perspective. Under a standard lease, the tenant’s (in this case our SCI) developments become our property at the conclusion of the lease, if we choose.

Our total income for rent when fully developed would be around 20k (taxed) and loan repayments (not taxed), The SCI income could be around 50k.

The building acquisition costs are 210k for the current building, A, and 70k for the new building, B.

Because of the rent, depreciation and debt servicing (probably at low or 0% interest rate), the SCI net profit and therefore tax would be minimal. Capital works over the next 5 years in the order of 150-200k. We are not in a hurry to complete the capital works. Most of the capex is renovations: roofing repairs, Internal fitout (bathrooms and kitchens), fix plumbing and electrical and change internal layout. I plan to do most of the labouring myself with support from the local electrician, plumber, and builder. Exterior is restricted due to where we live (a medieval village with 2 national monuments).

We have Australian-based managed assets that produce passive income (taxed there under France /Australia double tax agreement). We are fortunate that we have no debt and would fund all of the above from our own resources.

Does this make sense, or do you have a better idea (other than actually retiring)?

Question 2: Can we do this on our current visitor visa, or do we need to change our status, and if so, when?