Sector characteristics

Real estate is a key sector in France for natural and legal persons, as well as for French and foreign investors. Houdart A&C mainly caters to real estate developers, property managers, real estate agents and property dealers.

Accountancy requirements for real estate agents and property managers include establishing specific charts of accounts in order to:

  • Render accounts;
  • Calculate financial guarantees;
  • Keep different property owners’ accounts separate;
  • Integrate the principals’ escrow accounts into company accounts;
  • Keep a register of all principals in accordance with the law of 2 January 1970.

Other than these activity-specific requirements, real estate businesses are also subject to a variety of complex taxation requirements, more specifically relating to VAT. Because there are so many specific VAT requirements related to real estate transactions (be it for real estate agents, property developers, property dealers), it is vital to rely on accountancy experts with detailed knowledge of sector-specific requirements.

Financing is another major concern. Real estate developers, for example, are required to obtain a financial guarantee that the project will be finished (Garantie Financière d’Achèvement des Travaux, GFA), in order to sell off-plan developments (Vente en Etat Futur d’Achèvement, VEFA). As for property dealers, they may face investment difficulties when banks are reluctant to provide funding below determined revenue thresholds.

Our expertise at the service of your challenges

Houdart A&C currently provides chartered accountancy and audit services to numerous clients in the real estate sector and manages financial and tax-related operations. Our cross-disciplinary approach ensures comprehensive service that fits the needs of your business.