focus on fiscal

the French-American convention

The Franco-American tax convention, a guarantee of fiscal sustainability (convention of 31 august 1994)


French investors who buy a home in the United States on a rental purpose must declare their income in the US first, then in France. However, the bilateral convention prevents double taxation through a tax credit mechanism obtained in France. In the United States, actual expenses incurred in the management of the property, insurance, maintenance and even travel expenses (1 return air ticket per year and per partner), are deductible from gross rents.

 

Like in France, income tax threshold in the United States are based on a progressive scale. In most of the cases, investors are taxed in the first 10%’s threshold. Thanks to this convention, the United States offer a net profitability much higher than one can hope in France.

LLC *: (Limited Liability Company) is a legal form of company between an SCI and a LLC.