Your business is profitable. Put its profit to work in bricks and mortar.
You run a company that makes money, but you do not know how to invest that profit. This guide explains how a business owner invests in rental property, through which structure and with what tax treatment, and how Covesta supports you from A to Z on profitable opportunities.
The situation
Profit that is not working
Four situations come up again and again among the business owners we meet. If you recognise yourself in one of them, this guide is for you.
Idle cash
Profits pile up in the company's account or in a term deposit. The money is available, but it builds nothing and its return barely keeps pace with inflation.
Heavily taxed dividends
Moving that profit into your personal assets comes at a cost: after corporation tax, the dividend bears the flat tax (prélèvement forfaitaire unique, PFU), raised to 31.4% since 1 January 2026.
Wealth concentrated in the business
For many business owners, most of their wealth lies in the shares of their company. A tangible asset, let and financed by a loan, balances that risk.
A diary that is already full
Finding a property, overseeing works, finding a tenant: rental property is a second job. It is time, more than money, that you lack.
The structures
Three ways to invest your company's profit
There is no one-size-fits-all structure. Each one suits a situation: the amount available, the pace of investment, plans to sell the business, the need for personal income.
| Structure | Principle | Advantage | Drawback |
|---|---|---|---|
| Dividend, then purchase in your own name | The company distributes its profit to you. You invest personally, most often in furnished letting under the non-professional furnished letting status (LMNP). | Simplicity, rents received directly, depreciation of the property under the actual regime. | The profit is taxed twice before being invested: corporation tax, then 31.4% on the dividend. |
| Purchase by the operating company | The company that runs your business acquires the property itself, using its cash and a loan. | No distribution, and therefore no exit taxation. Quick to set up. | The building is exposed to the risks of the business and complicates a future sale of the company. The corporate purpose must allow it. |
| Holding company and property company subject to corporation tax | A holding company owns your operating company. Dividends flow up to it, then finance an SCI (French property company) subject to corporation tax, which buys and lets. | Dividends 95% exempt thanks to the parent-subsidiary regime (régime mère-fille), the building ring-fenced from the business, profits reinvested without going through your personal income tax. | Two or three companies to run, and heavier taxation on the day the funds are paid out to you or when the property is sold. |
Worked example
What is left of €100,000 of profit?
The same profit, depending on the route it takes before being invested. Simplified illustration, at the rates in force in 2026.
Profit before tax
€100,000
company eligible for the reduced rate
Corporation tax
€20,750
15% up to €42,500, 25% above
Distributable profit
€79,250
after corporation tax
Route 1
Dividend paid to the business owner
The €79,250 bears the 31.4% flat tax, i.e. €24,885.
€54,365
available to invest personally
Route 2
Dividend paid up to a holding company
Under the parent-subsidiary regime, only a 5% share is taxed, i.e. €3,963 taxed at 25%: €991 of tax.
€78,259
available to invest through a property company
The difference of almost €24,000 is not a permanent gain. In the second route, the money stays inside a company: it will be taxed if it is ever distributed to you. The point of the structure is to reinvest and build up capital before personal tax, not to eliminate tax. These figures assume a company eligible for the reduced rate and an applicable parent-subsidiary regime; your situation should be validated with your accountant.
The asset
Why rental property suits a business owner
A financial investment can be taken out in an hour. Property requires more work, but it offers what other investments do not.
The leverage of borrowing
Property is one of the few assets a company can buy by borrowing most of the price. The rents repay the bank; your cash only funds the deposit.
Depreciation under corporation tax
A company subject to corporation tax depreciates the building and deducts interest, charges and fees. Taxable profit is often low in the early years, while the wealth is being built up.
Income uncorrelated with your business
A let home keeps producing rent when your order book slows down. It is a second source of income, independent of your market.
A transferable asset
Shares in a property company can be passed on gradually and lend themselves to family estate planning, to be organised with your notary.
The method
Covesta supports you from A to Z
You decide, we execute. A single point of contact, from the first simulation to the rent collected, and opportunities whose yield is set out for you property by property.
Scoping
We start from your figures: available profit, borrowing capacity, time horizon. The choice of structure is made with your accountant, whom we involve from the outset.
Search and negotiation
We source high-yield properties in our cities, present a costed file for each one and negotiate the price on your behalf.
Coordinated renovation
Covesta coordinates the works with vetted contractors, who bear the liability and guarantees for their work, with the aim of improving the energy performance certificate (DPE) rating.
Furnishing
The home is furnished and equipped for letting, ready to welcome a tenant as soon as the works are complete.
Letting and management
Tenant selection, lease, inventory, rent collection, monitoring of arrears and insurance claims: our property management takes over.
Reporting
Your online portal brings together the property, the rents, the documents and a monthly management report, ready for your accountant to use.
Our fees are disclosed from the very first conversation: see our fee scale, the details of our method and our property management.
Watch out
Five mistakes we often see
- 1
Choosing the structure before the property
Setting up a holding company and an SCI without a specific project means paying fees for nothing. The structure follows from the transaction, its financing and your time horizon.
- 2
Holding the building in the operating company for convenience
When you sell the business, the buyer generally does not want the building. Taking it out at that point is costly.
- 3
Forgetting exit taxation
Under corporation tax, the capital gain on resale is calculated on the net book value: the depreciation deducted is clawed back. And withdrawing the funds personally is still taxed.
- 4
Using the property personally
A home owned by a company cannot be occupied free of charge by its director. Rental investment and the director's own residence are two separate matters.
- 5
Proceeding without agreements or advice
Loans between companies, shareholder current accounts, dividends paid up to a holding company: these flows must be put in writing and documented. That is the role of your accountant and, where necessary, a lawyer.
Frequently asked questions
What business owners ask us
Can my company buy a rental property directly?+
Yes, if its corporate purpose allows it or is extended by amending the articles of association. It is the quickest route, but the building is then exposed to the risks of the business and complicates a future sale of the company. Many business owners prefer to hold it in a separate company.
Do I need to set up a holding company?+
Not necessarily. A holding company becomes relevant when you want to reinvest your company's profits regularly without passing them through your personal income tax. The parent-subsidiary regime, which exempts 95% of dividends received, requires the companies to be subject to corporation tax and the holding company to hold at least 5% of the capital for two years. Setting one up has a cost and should be decided with your accountant.
SCI subject to corporation tax or furnished letting in your own name?+
Both depreciate the property. Furnished letting in your own name is simpler and more flexible on resale, but it means first taking the money out of the company. The SCI subject to corporation tax makes it possible to invest undistributed profit and build up capital, at the price of heavier taxation on exit. We run the figures for both on the chosen property.
What budget should I plan for?+
Our projects range from studios starting at around €80,000 to house shares at €250,000 to €300,000, including works and furnishing depending on the case. The bank generally finances most of the price: your company's profit serves mainly as the deposit and as a reserve.
How much time will it take me?+
A few decisions: approving the property, the works budget and the tenant's file. Everything else is carried out by Covesta and tracked from your online portal. It can all be done remotely.
Does Covesta handle the accounting and the legal structuring?+
No. Covesta is neither an accountant nor a lawyer. We work with yours, or refer you to professionals experienced in these structures, and we provide them with the figures and reports they need.
To go further: our tax page, the glossary and the yield simulator.
General information updated on , which may change with the annual Finance Act. It constitutes neither tax advice nor legal advice: Covesta is neither an accountant nor a lawyer, and every structure must be validated by your own advisers.
Let's talk about your profit, figures in hand
In thirty minutes, we look at what your company can invest, the opportunities that match it and what they yield. No commitment.
- A costed file for each property
- Your accountant involved from the outset
- A single point of contact, from purchase to management