Case Study
Frédéric is a French artist living in Bordeaux.
He is looking to acquire a condominium in Miami:
- As a secondary residence
- As a lifestyle investment
- With the possibility of renting it part of the year
He has:
- Available capital for the purchase
- A property already identified in Miami
- A clear desire to move quickly
From his perspective, the process seems simple:
“I find a property, I sign, and I buy.”
But U.S. real estate—especially for foreign buyers—does not function like the French notarial system.
Because here, the question is not just:
“How do I acquire the property?” The real question is:
“How do we structure ownership so that this property works from a legal, tax, and long-term planning perspective.
He is looking to acquire a condominium in Miami:
- As a secondary residence
- As a lifestyle investment
- With the possibility of renting it part of the year
He has:
- Available capital for the purchase
- A property already identified in Miami
- A clear desire to move quickly
From his perspective, the process seems simple:
“I find a property, I sign, and I buy.”
But U.S. real estate—especially for foreign buyers—does not function like the French notarial system.
Because here, the question is not just:
“How do I acquire the property?” The real question is:
“How do we structure ownership so that this property works from a legal, tax, and long-term planning perspective.
The Challenge
If Frédéric were to proceed without proper structuring, several issues would likely arise:
- The property may be acquired in his personal name, potentially exposing him to U.S. estate tax
- The ownership structure may not align with French tax treatment
- Cross-border reporting obligations may be overlooked or misunderstood
- Rental income, if any, may be taxed inefficiently
- Funds transferred from France may not be properly documented
- The transfer of the property upon death may become complex and tax-inefficient for his heirs
The issue is not the acquisition.
The issue is that without structuring, the investment may become tax-inefficient and difficult to manage over time.
- The property may be acquired in his personal name, potentially exposing him to U.S. estate tax
- The ownership structure may not align with French tax treatment
- Cross-border reporting obligations may be overlooked or misunderstood
- Rental income, if any, may be taxed inefficiently
- Funds transferred from France may not be properly documented
- The transfer of the property upon death may become complex and tax-inefficient for his heirs
The issue is not the acquisition.
The issue is that without structuring, the investment may become tax-inefficient and difficult to manage over time.
The Strategy
01
Defining the Ownership and Use Strategy
We would begin by understanding how Frédéric intends to use the property.
- Clarify whether the property will be used exclusively for personal purposes, partially rented, or held primarily as an investment
- Determine how long he plans to hold the property
- Determine whether succession planning is a priority from the outset
This step drives every structural decision that follows.
- Clarify whether the property will be used exclusively for personal purposes, partially rented, or held primarily as an investment
- Determine how long he plans to hold the property
- Determine whether succession planning is a priority from the outset
This step drives every structural decision that follows.
02
Designing the Ownership Structure
We would structure how the property is held from a legal standpoint.
- Evaluate whether to acquire through an LLC or other structure rather than direct ownership
- Consider liability protection and U.S. estate tax exposure
- Align the ownership structure with his personal and family circumstances
This is where the difference between a simple purchase and a structured investment begins.
- Evaluate whether to acquire through an LLC or other structure rather than direct ownership
- Consider liability protection and U.S. estate tax exposure
- Align the ownership structure with his personal and family circumstances
This is where the difference between a simple purchase and a structured investment begins.
03
Aligning U.S. and French Tax Treatment
We would ensure that the structure works across both jurisdictions.
- Evaluate how the ownership structure is treated under U.S. tax rules
- Identify how the same structure is viewed under French tax law
- Anticipate reporting obligations in both countries
A structure that works in the United States alone is not sufficient—it must also be appropriate under French law.
- Evaluate how the ownership structure is treated under U.S. tax rules
- Identify how the same structure is viewed under French tax law
- Anticipate reporting obligations in both countries
A structure that works in the United States alone is not sufficient—it must also be appropriate under French law.
04
Structuring the Flow of Funds
We would guide how capital is transferred and documented.
- Organize the transfer of funds from France to the United States
- Document the origin of funds clearly for compliance purposes
- Coordinate with financial institutions where necessary
This step is often overlooked but is critical in cross-border transactions.
- Organize the transfer of funds from France to the United States
- Document the origin of funds clearly for compliance purposes
- Coordinate with financial institutions where necessary
This step is often overlooked but is critical in cross-border transactions.
05
Reviewing the Property and Transaction Documents
We would analyze the legal aspects of the acquisition.
- Review the purchase agreement and contractual terms
- Examine title, liens, and other potential legal issues
- Ensure that the transaction reflects the agreed structure
Unlike in France, responsibility for due diligence rests largely with the buyer.
- Review the purchase agreement and contractual terms
- Examine title, liens, and other potential legal issues
- Ensure that the transaction reflects the agreed structure
Unlike in France, responsibility for due diligence rests largely with the buyer.
06
Coordinating Closing and Post-Acquisition Structuring
We would guide Frédéric through the closing process and the post-acquisition phase.
- Ensure proper execution of closing documents and transfer of ownership
- Align the structure with the property’s intended use (residence, rental, or both)
- Prepare for ongoing compliance, taxation, and future planning
The acquisition is only one step—the structure must remain effective over the long term.
- Ensure proper execution of closing documents and transfer of ownership
- Align the structure with the property’s intended use (residence, rental, or both)
- Prepare for ongoing compliance, taxation, and future planning
The acquisition is only one step—the structure must remain effective over the long term.
