Most international buyers purchasing a ski property in the French Alps do so with someone else — a spouse, a civil partner, a sibling, or a friend. The purchase deed lands in front of you at the notaire's office, and unless you have been explicit about how you want to hold the asset, French law quietly defaults you into en indivision: joint co-ownership with rules that can create serious problems when circumstances change.
The choice of ownership structure is not a formality. For unmarried couples, the wrong structure can trigger inheritance tax of 60% on the first death. For families buying together, it can lock everyone in if one co-owner refuses to sell. For buyers who want short-term holiday rental income, one structure actively blocks that strategy.
There are four main frameworks available to joint buyers under French law: en indivision, the tontine clause, the Société Civile Immobilière (SCI), and the Société à Responsabilité Limitée de famille (SARL de famille). For buyers who want Alpine exposure without the full capital commitment of direct ownership, fractional co-ownership offers a fifth route. Each has a specific use case — and none is universally right. This guide sets out what each one means in practice for French Alps ski property buyers.
En Indivision: The Default — and Its Limitations
En indivision is a form of co-ownership in which each buyer holds a defined percentage share — typically 50/50, though not necessarily — in the whole property, without that share being physically demarcated. It is the structure your notaire will insert by default unless you instruct otherwise, and it governs roughly 10% of all residential property in France.
In practice, indivision is relatively straightforward while all co-owners remain alive and in agreement. Decisions that constitute "acts of administration" — routine maintenance, for example — require the approval of co-owners representing at least two-thirds of the shares. Major decisions, including selling the property, historically required unanimity. That unanimity requirement was the structure's long-standing vulnerability: a single co-owner could block a sale indefinitely, even in cases of relationship breakdown or financial disagreement.
Loi n° 2026-248 of 7 April 2026, adopted unanimously by the Assemblée nationale on 26 March 2026, begins to address this. Under the reform, co-owners holding more than half of the shares can now initiate a formal sale procedure even without unanimous consent, and a judge may authorise a single indivisaire to sign a sale deed on behalf of all parties in cases of deadlock. The reform is expected to come fully into force in early 2027.
The 2026 law focuses primarily on inherited indivision situations, but its principle — that a simple majority can override a blocking minority — changes the risk calculus for buyers who want clear exit rights from the outset.
When indivision is the right choice
Indivision is a reasonable structure for married couples buying under a community of property regime, for siblings co-purchasing a family chalet where inheritance outcomes are already aligned, or for short-term co-investment arrangements. It is low-cost to establish — no company formation required — and ownership shares can be adjusted by notarial act after completion.
Its key weakness remains inheritance: on the death of one co-owner, their share passes according to French succession law, which may route it to their children rather than to the surviving partner. If that is a concern, consider the tontine clause or an SCI. Our guide to French inheritance law for non-resident ski property owners sets out the full framework in detail.
The Tontine Clause: Protecting the Surviving Partner
The tontine clause — formally the clause d'accroissement — is the closest French equivalent to a joint tenancy under English law. When included in the purchase deed, the property is treated as having been owned solely by the survivor from the date of acquisition. On the first death, no share passes to children or other heirs: the survivor becomes the retrospective sole owner.
This makes the tontine clause powerful for couples who want to ensure the surviving partner retains full, unencumbered ownership of the ski property without negotiating with children or other heirs. As Actes Alliances Notaires explains, the clause must be written into the original purchase deed — it cannot be added after completion, and any change requires both parties' consent.
The inheritance tax liability by relationship type
The tontine does not eliminate the French inheritance tax liability between co-owners. The treatment varies significantly depending on the legal relationship between the parties:
- Married couples benefit from a full exemption from French inheritance tax between spouses. The tontine adds survivor protection but delivers minimal additional tax advantage over a well-drafted will.
- PACS partners (civil partners under the Pacte Civil de Solidarité) have been fully exempt from inheritance tax between partners since 2007 — the same treatment as married couples. A PACS couple buying en tontine gets survivor-takes-all ownership with zero inheritance tax exposure: a highly efficient combination for unmarried couples.
- Unmarried cohabitants face French inheritance tax at 60% above an allowance of just €1,594 on assets passing between them at death. The tontine does not remove this liability. For a ski apartment valued at €400,000, the surviving partner could face a tax bill of approximately €239,000 — a severe risk that often goes unacknowledged at purchase.
There is a further practical constraint: the tontine requires unanimity for all major decisions, including sale, for as long as both owners are alive. If the relationship breaks down, neither party can force a sale without the other's consent — the opposite of the exit flexibility introduced by the 2026 indivision reform.
For unmarried cohabitants buying together, registering a PACS before completion is worth serious consideration: it reduces the inheritance tax rate from 60% to zero and is a straightforward civil process completed at a mairie or notaire's office in France.
The SCI: Flexibility, Family Planning, and Key Compromises
A Société Civile Immobilière (SCI) is a private civil company formed specifically to own and manage real estate. Rather than buying the property directly, the SCI holds it — and the buyers hold shares in the SCI. This shifts the legal framework from property law to company law, which opens up planning tools unavailable in direct ownership.
Inheritance flexibility is the SCI's primary advantage. SCI shares are governed by the inheritance law of the deceased's last country of residence — meaning non-resident owners can use their home country's rules to bypass France's forced heirship provisions. Parents can also gift shares progressively to children, using the €100,000 tax-free allowance per parent, per child, every 15 years. A family of four (two parents, two children) can shelter up to €400,000 of SCI share value from inheritance tax within each 15-year window, and repeat the exercise as asset values grow.
SCIs also allow ownership proportions to change over time by transferring shares rather than amending a property title deed — administratively simpler, and relevant where the group of shareholders is expected to evolve across generations.
The critical disadvantage for ski property buyers: furnished rentals
The SCI's weakness for Alpine buyers lies in its interaction with rental strategy. An SCI that engages in commercial furnished lettings — the standard LMNP approach used by most ski property investors — is treated as carrying on a commercial activity. It loses its civil company tax treatment (IR regime) and becomes subject to corporate tax (IS), which materially changes the income tax and capital gains position at resale.
In practical terms, an SCI is generally incompatible with short-term holiday rentals, seasonal lettings, and furnished tourist accommodation — precisely the rental model most buyers of French Alps ski property plan to use. As The Connexion notes, once income from furnished lettings exceeds 10% of the SCI's total income, the tax position changes materially. An SCI suits properties used personally by shareholders, or let under long-term unfurnished agreements — not ski apartments generating weekly rental income in January and February.
There are also ongoing administrative obligations: annual accounts, shareholder meeting minutes, and a share register are all required. Annual management costs typically run to €500–€1,500 depending on complexity. For lower-value properties or buyers whose primary goal is rental income, the overhead may not be justified.
The SARL de Famille: Limited Liability, Furnished Rentals, and Family Planning
The Société à Responsabilité Limitée de famille — the SARL de famille — has become the structure of choice for a growing number of family buyers acquiring French Alps ski property over the past five years. Where the standard SCI breaks down on short-term furnished rentals, the SARL de famille holds up. It is legally permitted to carry out meublé de tourisme lettings, seasonal furnished rentals and LMNP-style short lets without triggering the commercial activity reclassification that forces a standard SCI onto the corporate tax (IS) regime.
That single difference — rental compatibility — makes the SARL de famille directly relevant to Alpine buyers who want both family succession planning and active short-let income from the same property. In practice, the structure delivers three things the SCI cannot:
- Limited liability. Shareholders' personal assets are protected. Liability is capped at each shareholder's capital contribution — unlike SCI partners, who can face unlimited personal liability for company debts.
- Furnished rental compatibility. A SARL de famille can operate furnished tourist accommodation, seasonal lets and weekly holiday rentals without losing its tax transparency. A standard SCI doing the same would be reclassified as commercial and pushed onto IS.
- IR election and tax transparency. A SARL de famille can elect to be taxed under the income tax (IR) regime for an initial five-year period, renewable. Under this election, each shareholder declares their proportional share of rental income on their personal tax return — broadly equivalent to the LMNP framework used by direct individual owners. TVA recovery on qualifying new-build purchases under a managed rental programme is also available on the same basis as for direct buyers.
The family-member requirement
The SARL de famille designation requires that all shareholders are family members: direct relatives by blood (parents, children, grandchildren, siblings), or related by marriage or PACS. It cannot include unrelated co-investors, business partners or friends. If the buying group includes non-family members, either a standard SARL (which defaults to IS) or direct co-ownership must be used instead.
This restriction is also its structural discipline: the SARL de famille is purpose-built for multi-generational family holdings, and the family-only rule keeps the shareholder base coherent over time. Shares can be transferred or gifted between qualifying family members without dissolving the company — which supports progressive succession planning and the gradual transfer of ownership to the next generation.
Limitations to model before you commit
The IR election is limited to five years by default. Renewal is possible but not automatic — if it lapses, the SARL reverts to IS, at which point rental income is taxed at the corporate rate and capital gains at exit lose the length-of-ownership abatements available to individual owners. For a property held for 20 years, the difference in CGT treatment between the IR and IS regimes is material: this is a timeline to track from day one, not to rediscover five years in.
Formation and running costs are higher than direct ownership. Expect €1,500–€3,000 to set up a SARL de famille through a notaire or accountant, plus €800–€2,000 per year in ongoing accounting and administrative costs (annual accounts, shareholder meeting minutes, annual tax filings). For lower-value properties, or buyers whose primary motivation is personal use rather than rental income, the overhead may not be justified.
Exit is also more complex than with direct ownership. Selling through a SARL typically requires either selling the company shares (which can complicate mortgage financing for the buyer) or dissolving the company prior to sale, which may trigger a notional disposal and potential tax charge. Both scenarios require advance planning with a notaire and an accountant — ideally from the point of purchase rather than when a sale is already agreed.
SARL de famille vs SCI: the deciding question
Buyers comparing the two structures head-to-head should focus on a single question: will the property generate furnished short-let rental income? If yes, the SARL de famille is almost always the more efficient vehicle — it solves the SCI's core incompatibility with LMNP-style lettings while preserving family succession planning tools. If the property will be used personally or let under long-term unfurnished agreements, the SCI's lower running costs and open-ended share-gifting framework often prevail. For further detail on how these structures interact with French rental tax regimes, see our comparison of investment structures for French ski property.
Fractional Co-Ownership: A Lower-Capital Route Into the French Alps
Separate from the legal structures above — all of which assume you are buying the whole property — fractional co-ownership is a fifth model that is quietly gaining ground in the French Alps. The structure is straightforward: a single property is divided into eight equal shares, and each buyer acquires one eighth. You pay one eighth of the purchase price, one eighth of the notarial fees and stamp duty, one eighth of any refurbishment costs, and one eighth of the ongoing running costs. The property is fully managed — maintenance, lettings, cleaning, and administration are handled centrally.
This is not timeshare, and the distinction matters. Each co-owner holds a genuine legal share in the underlying real estate asset, recorded at the land registry, with the same notarial protections as any French property purchase and the same exposure to capital appreciation. What fractional ownership does is reduce the capital commitment to a fraction of the headline price — making a well-located Alpine property accessible to buyers who cannot or do not want to deploy the full capital required for direct ownership, or who want to spread exposure across more than one resort.
The model is well established in the United States and parts of the Caribbean; in the French Alps it is still at an early stage, with a limited but growing number of properties available through specialist platforms. For buyers who want a foothold in Alpine property — or who want to compare the yield and flexibility profile of a managed fractional share against, say, an LMNP apartment — it is worth understanding alongside the direct ownership structures covered in this guide. Co-Ownership Property lists fractional co-ownership opportunities across the French Alps if you want to see what the model looks like in practice.
Matching the Structure to Your Situation
There is no single correct answer, but the patterns are consistent enough to give clear starting-point guidance:
- Married couple, rental income a priority: Direct purchase en indivision, possibly with a donation entre époux to reinforce survivor protection. An SCI is not appropriate if short-term furnished letting is planned.
- Unmarried couple, rental income a priority: Consider registering a PACS before completion to eliminate the 60% inheritance tax exposure. Purchase en indivision or en tontine depending on inheritance priorities. An SCI is unlikely to work alongside an active rental strategy.
- Family group (parents and adult children, or siblings), furnished rental income central: The SARL de famille is the structure to model first — it combines limited liability, furnished rental compatibility, IR tax transparency and the ability to transfer shares across generations. Confirm the IR election period and plan the renewal well before the five-year mark.
- Family investment, multi-generational hold, limited personal rental: An SCI is often the right vehicle — particularly where progressive share-gifting to children and long-term succession planning are central goals and furnished short-lets are not part of the plan.
- Two unrelated co-investors, rental income central: Direct purchase en indivision, reinforced by a detailed private convention d'indivision setting out management rights, rental income distribution and exit mechanics. The 2026 reform strengthens majority exit rights, but a private convention provides clearer, enforceable terms between the parties.
- Buyer with limited capital, or wanting managed exposure without full ownership commitment: Fractional co-ownership — an eighth share in a fully managed property — reduces entry cost and ongoing liability proportionally while preserving genuine asset exposure and capital upside. Worth comparing against an entry-level LMNP apartment as an alternative first step into Alpine property.
What to Settle With Your Notaire Before Signing
The ownership structure must be decided before the acte authentique is signed — amending it later incurs both tax and legal costs. When you meet your notaire, come prepared with clear answers to the following: Are the buyers married, PACS-registered, or unmarried cohabitants, and under which matrimonial regime? Do either buyer have children from a previous relationship? Is short-term furnished rental income a priority, or is this primarily personal use? Is this a long-term family hold or a medium-term investment likely to exit within 15 years? Will shares need to be gifted to children as part of succession planning? If a SARL de famille is under consideration, confirm that all intended shareholders qualify as family members and agree on the IR election renewal timeline from the outset.
The notaire's role extends well beyond drafting the deed — it includes advising on its structure. Our guide to the notaire process in the French Alps explains what to expect at every stage of a purchase, from the compromis de vente through to completion.
Getting the structure right at the point of purchase — rather than trying to unravel it later — is one of the most cost-effective decisions any joint buyer of French ski property can make. It costs very little to do correctly. It can cost a great deal to change.
