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French Partnerships

This concerns non-trading companies, non-trading properties, general partnerships...


The tax form (n°2048 IMM) is only done for the partnership, but taking into account the situation of each partner (page 3 of the tax return) :

partners « private individuals » :

  • The capital gain is calculated according to the rules applying to individuals (page 2 of the tax return).
  • The capital gain is taxed between the partners according to their share.
  • The tax rate is 19% (more social charges)

partners « legal entities » with head office out of France :

  • The capital gain is calculated according to the rules applying to legal entities (page 4 of the tax return : neither flat rates of 7,5% and 15% nor the deduction for duration of ownership are applicable, but it will be applied a depreciation per year on the purchase price and the costs for property and not for land).
  • The capital gain is copied out on page 2, according to the interest of the company into the French partnership, and taxed at 33,1/3% (or 75% if the legal entity is domiciled in an ETNC).

Appointment of a tax representative

When do you have to appoint a tax representative ?


  • if a non european legal entity is partner : the French partnership has to appoint an accredited representative whatever the selling price and the date of purchase.
  • or if the interests of the non european partners « private individuals » together are equal or higher than €150,000 and if the partnership is owner less than 30 years.



  • The threshold of €15,000 depends on the overall selling price, not on the interests of each partner.
  • The partners « legal entities » are never exempted for duration of ownership.
  • The exemption for sale of its property in France (art 150 U II 2° french tax code) cannot be applied to foreign partners (except for French residents partners, if it concerns their main residence).

SCI and additionnal Tax

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