Create a foreign company to register his vehicle: good idea?

First, we must remember that the registration certificate must be the name of a person or entity having the same nationality as the vehicle registration. In the case of a car registered abroad, to comply with this rule, it must have the vehicle on behalf of a company based abroad.

Create a foreign company in order to register a vehicle , you have purchased for you to use in France, is considered by the IRS as an abuse of rights , resulting in a tax audit for fraud pattern to + VAT evasion profit of the company is not carried out in France + penalties and bad faith.

In France, it is forbidden to deduct VAT on a car used in the hexagon (VAT on passenger cars). It will be easily justified by the tax authorities that the purpose of this company is that you provide the usufruct of this vehicle.

This solution is not recommended because the EU countries will soon work together to address the creation of companies on their soil from a beneficiary of other EU countries. Clearly, if you - French - create a company in Luxembourg, Latvia or Lithuania, the French tax authorities will be notified.

Buy or rent: real good question

As seen above, for use in France, buying the vehicle abroad - so owning a physical asset - is discouraged. We must focus the rental vehicle with foreign license plates, considered the use of a service.

The benefits of leasing versus buying are obvious

- You are not "officially" owner

- The vehicle will not be seized because it does not belong to you,

- It is a guarantee for discretion your surroundings and state services.