Taxation: investment in real estate that escapes MFIs

Buying a property freehold can also be an interesting strategy to anticipate the transfer of your real estate by reducing the gift tax. elxeneize /

OUR ADVICE – If you want to continue investing in real estate while avoiding wealth tax, you need to choose assets outside of your range. Think about buying in a sectioned off property.

One solution to get below the property tax threshold is to invest in assets that are not taxed by IFI. For example, you may acquire bare title to a property in which the seller reserves a usufruct, thereby temporarily separating the use of the property from its ownership. Only the bare ownership value enters the MFI’s taxable assets.

A little-known arrangement allows you to completely remove the property from your estate: the social tenancy. It consists in buying out the bare ownership of a new house, the right of use of which is held by the social landlord. Another scheme, buying bare ownership at an adjusted price, offers the same tax benefits. This is an alternative to a life annuity: you buy bare ownership of a home for a senior to continue to live in.

Advantage of social lease right of use

The social tenancy right of use allows individuals to be involved in the production of social housing or for subletting, the most…

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