Foreign Entity With French Property? Why You Will Need a Representative in France From 2027
- 12 août
- 9 min de lecture
For years, a foreign company or trust holding French real estate could stay almost invisible to the French tax administration: an address abroad, a one-off commitment letter, and no local interlocutor. That model is ending. Under Article 102 of Law no. 2026-534 of 25 June 2026 (published in the Official Journal on 26 June 2026), entities within the scope of France's annual 3% tax on the market value of property (taxe sur la valeur vénale des immeubles, or TVVI) that have no permanent establishment in France must designate, in their annual declaration, a person in France authorised to receive procedural documents relating to the tax.
The new rule sits in Article 990 FA of the French Tax Code (Code général des impôts, CGI). Its first practical bite is the 2027 filing campaign (situation as at 1 January 2027, declaration due by 15 May 2027). This guide explains who must appoint someone, who can act, what happens if you leave the box blank, and how the role differs from the better-known capital-gains représentant fiscal. For the reform overview, see French 3% Tax (TVVI): What Changes From 2027. For the annual form, see Form 2746-SD: The Complete Guide.
FrenchNotaires matches you free of charge with vetted bilingual notaires, typically within about 48 hours, in person (including near Cannes or Saint-Tropez, where foreign company holdings are common) or by video call.
What Article 990 FA requires
In substance, the new article provides that when a legal entity, organisation, trust or comparable institution is subject to the TVVI filing obligations in Articles 990 E and 990 F and has no permanent establishment in France, it must designate, in the declaration itself, a natural or legal person:
who is tax-domiciled in France (if an individual), or
whose registered office is in France (if a company or other body),
authorised to receive, for the entity's account, all communications, procedural documents and notifications from the administration relating to, or arising from, the control of the tax under Article 990 D.
Two points matter immediately:
the duty attaches to entities under a declarative obligation, including those that remain exempt from paying the tax because they disclose correctly;
the designation is made on the annual return (in practice form 2746-SD), not in a separate letter after an audit starts.
From optional invitation to systematic designation
Before the reform, BOFiP already contemplated a French contact for the 3% tax, but on a different logic. Under BOI-PAT-TPC-30, § 100, the tax office could invite an entity liable to the tax to appoint, within 90 days, a representative in France authorised to receive communications about the commitment under Article 990 E, 3°, d), and about assessment, recovery and litigation of the tax.
That older representative, unless given a special mandate, was not empowered to file the declaration and was not jointly liable for payment of the tax (unlike the accredited representative appointed on certain non-resident sales).
Article 990 FA reverses the sequence. Designation becomes systematic and attached to the filing, without waiting for a formal invitation. Combined with the abolition of the standing engagement de communiquer, most foreign structures that claim a disclosure-based exemption will, from 2027, have both an annual French filing and a named French address for service.
Who must designate a representative?
Plan on Article 990 FA if all of the following are true:
your structure is a legal entity (company, partnership, trust, foundation, fiducie or comparable institution);
it is subject to TVVI declarative duties under Articles 990 E / 990 F (because it is taxable, or because it claims a disclosure-based exemption);
it has no permanent establishment in France.
Classic examples include a UK Ltd, US LLC, Swiss or Monaco company, offshore vehicle, or foreign trust holding French property directly or through a French SCI. A French SCI with a permanent French seat is usually on the other side of the line, but that does not protect a foreign parent above it.
Who can act as representative?
The statute allows either:
a natural person fiscally domiciled in France; or
a legal person with its registered office in France.
In practice, most non-residents prefer a professional firm that already handles French tax correspondence in French, tracks deadlines, and can escalate to counsel if a rectification notice arrives. A friend with a French address is legally possible under the wording, but a missed letter can still start clocks against you.
As of August 2026, BOFiP has not yet published implementing commentary on accreditation, contracts or proof of mandate for Article 990 FA. Until that appears, put the arrangement in writing, keep evidence of acceptance, and align the name on form 2746-SD with the person who will actually open the post.
What the representative actually does (and does not do)
On the face of Article 990 FA, the core function is receipt of service: audit notices, information requests, proposals of rectification and related notifications tied to control of the 3% tax.
In a well-run mandate, the representative will also:
forward documents immediately to your overseas advisers;
diary response deadlines;
coordinate replies in French with the tax office;
optionally, under a wider engagement, prepare and file 2746-SD and help with valuations.
Do not assume the statutory role automatically includes filing or payment liability. Pre-reform doctrine was careful on that point for the invited representative, and the new article is framed around notifications. If you want the same firm to lodge the teleprocedure or to stand behind tax payment, say so expressly in the contract.
A missed forward or a misunderstood notice can still expose the structure to 3% of gross market value each year, with no debt deduction. On a €2,000,000 villa, that is €60,000 a year before interest and penalties.
Why the administration wants a French address
Cross-border notification is the weak point of tax control. Letters sent abroad are slow, contested, or simply never acknowledged. A designated French recipient gives the administration a reliable place to serve documents and gives you clearer proof of when time limits started.
Recent litigation around the Côte d'Azur and elsewhere already showed how often foreign entities fight the regularity of service and procedure. The reform is designed to reduce that procedural fog before the next control wave.
Map the chain before you name a French contact
If a UK Ltd, US LLC or trust sits above a French SCI, ask a bilingual notaire to list every entity on title and in the share register before you complete the 2027 designation box.
What if you do not designate anyone?
Article 990 FA contains an automatic fallback. If no designation is made, the legal entity closest to the immovable assets in the ownership chain that is known to the administration is deemed authorised to receive the same communications, whether or not that entity is itself exempt from the tax.
In a typical foreign-parent / French-SCI structure, that often means the SCI. Partners who believed they were "transparent and already filing 2072" may suddenly find audit correspondence landing on the French company because the parent left the representative box empty.
The default is a safety valve for the administration, not a strategy for you. It can also create tension between co-owners of the SCI who never agreed to manage a foreign parent's TVVI file.
TVVI representative vs other French "fiscal representatives"
English speakers often collapse several French roles into one phrase. Keep them separate.
Feature | TVVI representative (art. 990 FA) | Sale fiscal representative (art. 244 bis A) | General invitation (art. 223 quinquies A / older TVVI practice) |
When | Annual 2746-SD from 2027 if no French PE | Many taxable non-resident property or share sales | On invitation by the tax office (historically 90 days) |
Core job | Receive procedural documents on the 3% tax | Guarantee and file capital-gains tax on the sale | Receive communications on assessment, recovery and litigation |
Accreditation | Statutory French domicile / seat; detailed BOFiP pending | Specific DGFiP accreditation / guarantee regime | Invitation-based; EU/EEA treaty exceptions can apply |
Notaire | Maps structure; not a substitute for the designation | Handles the deed; cannot act as the accredited sale rep | Usually outside the invitation process |
The current paper form 2746-SD still contains an older-style box referring to a representative authorised to receive communications (citing Article 223 quinquies A on some millésimes). Expect the 2027 electronic form to be adapted for Article 990 FA once DGFiP updates the teleprocedure. Until then, ask your tax adviser which field to complete.
For sale-side rules, read French Fiscal Representative for Non-Resident Property Sellers.
Interaction with a property sale in the same year
Article 990 F CGI already links the accredited capital-gains representative appointed on certain sales by non-EU entities to unpaid TVVI for the year of disposal. In broad terms, that sale-side representative can be pursued for the 3% tax due for the year of sale (and related adjustments), if the undertaking on the capital-gains form expressly covers the TVVI, but not for earlier unpaid years.
That liability is separate from the new Article 990 FA designation. If you sell in 2027 while also filing 2746-SD, you may have two different French contacts on two different files. Coordinate them early so notices do not fall between stools.
Who should prepare now
foreign companies holding French property directly and still relying on an old commitment letter;
trustees of trusts holding French real estate;
foreign holding companies above a French SCI;
family offices running several non-resident structures on the Côte d'Azur, in Paris or elsewhere.
Sensible order of work in 2026: map the chain, collect shareholder details above 1%, shortlist a French contact, open electronic filing access (SIREN and professional space on impots.gouv.fr), then diarise 15 May 2027.
For SCI context, see Buying Through an SCI and SCI Advantages and Disadvantages for Foreigners.
Do EU companies also need a representative?
Article 990 FA keys off the absence of a permanent establishment in France, not off nationality alone. An EU company without a French PE that remains subject to TVVI filing duties therefore appears caught, even if it remains eligible for an EU or treaty-based disclosure exemption.
That is a different design from Article 223 quinquies A, which expressly dispenses certain EU/EEA entities with mutual assistance treaties from a general invitation to appoint a representative. Do not import that dispensation into Article 990 FA until DGFiP says so in updated BOFiP.
Conservative working assumption until commentary is published: if you file 2746-SD without a French PE, name a representative.
Practical timeline for 2026–2027
When | Action |
H2 2026 | Map every entity between ultimate owners and the French title; locate old engagement letters; list members above 1%. |
Late 2026 | Shortlist and engage a French contact for Article 990 FA; agree forwarding protocols and who files 2746-SD. |
Q1 2027 | Finalise 1 January valuations; secure SIREN and professional e-filing access if missing. |
By 15 May 2027 | File 2746-SD with the representative designation completed; archive the transmission receipt. |
Working with a bilingual notaire
Your notaire is not a substitute for the Article 990 FA designee, but the right bilingual office makes the designation safer. They can show what the deeds and SCI registers actually say, flag foreign corporate layers that create filing risk, and introduce you to tax professionals who handle the teleprocedure and the French contact role.
FrenchNotaires can match you within about 48 hours so that first conversation starts in English. Related pages: Tax Residence and French Notarial Matters, Buying French Property From Abroad and Selling Property in France as a Non-Resident.
Frequently asked questions
Is the TVVI representative the same as a VAT fiscal representative?
No. Article 990 FA is specific to the 3% tax procedure. A firm that already handles other French representation mandates may still be able to perform both roles under separate legal bases.
What if we do not designate anyone?
The entity closest to the French property in the ownership chain known to the administration is deemed authorised to receive notices, even if that entity is itself exempt. Leaving the box blank is a poor strategy and can drop audit mail on a French SCI unexpectedly.
Does an EU-based company also need a representative?
The statute targets entities with no permanent establishment in France. Pending BOFiP updates, plan conservatively: if you file 2746-SD without a French PE, name a representative.
Can my notaire be the TVVI representative?
Notaires generally do not act as the Article 990 FA designee in the way a specialised tax contact does. Your notaire remains essential for deeds and structure mapping. Confirm role boundaries at the first meeting.
Is this the same person who acts on a property sale?
Not necessarily. Sale-side representation under Article 244 bis A follows different accreditation and guarantee rules. You may need both contacts if you sell and still file for TVVI in the same year.
Does the representative pay the 3% tax?
Article 990 FA is drafted around receipt of procedural documents. Payment liability for interposed entities and for certain sale-year accredited representatives follows Article 990 F and the terms of any separate undertaking. Put payment responsibilities in writing.
When must the designation appear?
In the annual declaration from the 2027 campaign onward (due by 15 May 2027 for the position as at 1 January 2027), for entities without a French permanent establishment that are subject to the filing duty.
How quickly does FrenchNotaires respond?
FrenchNotaires aims for bilingual notaire introductions within about 48 hours across a network exceeding 340 practitioners.
Sources
Ready to put a French contact plan in place for 2027?
Describe your foreign entity type, SCI layers and property location when you request a bilingual notaire introduction.