A villa in a holding company was convenient. At 20% of its value a year, much less so.
For years, placing a building or a family home in a company was a reflex of good management. A new tax applicable from this year and the reform of the contribution-and-sale scheme under way change the equation. For some owners, the question is no longer whether to sell, but when and how.
A new tax from the 2026 accounts
The 2026 finance act, enacted on 19 February 2026, created a tax on certain assets of so-called family holding companies (article 235 ter C of the French General Tax Code). It targets companies subject to corporation tax that meet three conditions: at least €5 million in assets, mainly passive income (rents, dividends, interest), and control by one person or their family.
The rate is 20% of the value of the assets concerned. The list is limited: boats, leisure vehicles, jewellery, horses, fine wines… and, according to the first commentaries, homes that the family keeps for its own use free of charge or for an abnormally low rent. Homes let to third parties at the market rate are not concerned.
The tax authorities' official guidelines had not been published in spring 2026. The exact treatment of a house occupied by the family must be checked with a tax lawyer or a chartered accountant before any decision.
An example with figures
Example with figures: a family villa in a holding company
A fictitious case. A holding company controlled by a family holds €6 million in assets, mainly shareholdings and investments. It also owns a €1.2 million villa where the family spends its holidays without paying rent.
| Value of the villa | €1,200,000 |
| Tax rate | 20% |
| Tax due for the financial year, if the villa is included | €240,000 |
At this level, keeping the property in the company no longer makes sense. The options quickly come down to three: let it genuinely at the market rate, take it out of the company, or sell it.
A sale driven by tax rules is prepared like any other: with a fair price and a targeted buyer.
Contribution and sale: property does not count
The second subject is the reform of the contribution-and-sale scheme (apport-cession, article 150-0 B ter), voted by the National Assembly on 16 October 2026 in a softened version and still to go before the Senate. When a business owner has contributed their shares to a holding company which has then sold them, a gift of the holding company's shares could trigger the tax on the contribution gain, for the part of the price not reinvested in an economic activity.
Yet buying buildings to let them does not count as reinvestment: managing one's own property assets is excluded. Holding companies that have placed their cash in bricks and mortar are therefore the first concerned, and some may decide to sell.
Selling a building owned by a company: what changes
Selling a property owned by a company subject to corporation tax does not follow the rules that apply to individuals. The capital gain is calculated on the book value, after depreciation, with no allowance for length of ownership. It is included in the company's taxable profit, then the money distributed to the shareholders is taxed a second time.
The company sells, receives the money and pays tax on the capital gain. Simple for the buyer, costly if the building is old and depreciated.
The buyer takes over the company. Possible, but they also inherit its past: many buyers refuse.
Dividing a building into flats widens the market, at the cost of delays and formalities.
The right choice depends on the company's figures, the condition of the building and the local market. This is where mistakes are costly: selling as a whole at a discounted price, or dividing without having measured the cost. See selling a building flat by flat or as a whole.
What will happen on the market
These two reforms target a small population, but they often concern unusual properties: large houses, seaside villas, entire buildings in town centres. These properties have a narrow market. If several owners sell at the same time, buyers will have the choice, and poorly presented or poorly positioned properties will stay in the shop window.
For the seller, the challenge is not to be at the mercy of the calendar. A company that has to dispose of a property before the end of a financial year does not have the same negotiating power as an owner who has planned ahead. And buyers of this type of property, investors or wealthy families, know how to spot a rushed sale.
"A sale driven by tax rules is prepared like any other: with a fair price and a targeted buyer."
Our approach
We work on properties whose sale requires more than a listing: buildings, large estates, property complexes. We identify the buyers likely to be interested and the best way to present the property. The tax side remains the job of your chartered accountant and your notary. For a building, see our page building for sale, or contact us.
Frequently asked questions
Is my family property company (SCI) concerned by the 20% tax?
Only if it is subject to corporation tax and meets the three conditions: €5 million in assets, mainly passive income, family control. An SCI subject to income tax is not targeted.
Is a building let to third parties taxed?
No, if the rent matches the market rate. The tax targets assets that the family enjoys personally.
Is the reform of the contribution-and-sale scheme final?
No. It was voted by the National Assembly on 16 October 2026 in a softened version and must still go through the Senate. The final budget is expected in December.
Does taking the property out of the company avoid the tax?
Taking a property out of a company subject to corporation tax has a tax cost of its own: the capital gain is taxed as if it were sold. The calculation must be done before choosing between taking it out, letting it or selling it.
Is it better to sell the building or the company's shares?
It depends on the book value, the company's debts and the buyers targeted. Both options should be costed with the chartered accountant before choosing.
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