How can capital gains deferral and reinvestment in boutique or traditional hotels be efficiently reconciled in France?

First, the future investor must successfully dispose of the shares of their former company, and one of the common obstacles to the disposal of these shares for the seller/future hotel investor is capital gains tax (taxed at 30%). […]

It should be remembered that in France the management of personal property or personal real estate (furnished or unfurnished property rental activity) does not benefit from this exemption.  à la cession de titres d’une société est bien souvent la fiscalité qui vient frapper la plus-value qu’il a réalisée, taxée au taux de 30%. […]

Precautions in the event of works on the hotel should also be considered, as the investor must often take into account hotel renovation or extension works. This phase may significantly delay the hotel’s opening and thus weaken eligibility under Article 150-0 B TER of the French General Tax Code. […]

Beyond the substantial tax aspects, investors are advised to ensure that their hotel investment is a pertinent investment in its market segment (including works), particularly with a view to a resale in the medium term. […]

The final stage is the actual hotel acquisition. This phase starts with buy-side due diligence covering accounting, technical and tax aspects – all essential for making an informed decision on whether to go ahead or not.  […]

Failing this, the entire hospitality reinvestment project will be undermined.