Contact

Are you a client? You should contact your private banker. 
You are not a client but would like to have more information about Societe Generale Private Banking? Please fill in the form below.

Local contacts

France : +33 (0) 1 42 14 20 00 (9am - 5pm)
Luxembourg : +352 47 93 11 1 (8:30am - 6pm)
Monaco : +377 97 97 58 00 (9/12am - 2/5pm)
Switzerland : Geneva +41 22 819 02 02
& Zurich +41 44 218 56 11 (8:30am - 5:30pm)

You would like to contact about the protection of your personal data?

Please contact the Data Protection Officer of Societe Generale Private Banking France by sending an email to the following address : protectiondesdonnees@societegenerale.fr.

Please contact Bieneke Russon, the Data Protection Officer of Societe Generale Bank & Trust Luxembourg by phone : +352-47.93.93.11.5046 or by sending an email to the following address : lux.dpooffice@socgen.com.

Please contact Julien Garnier, the Data Protection Officer of Societe Generale Private Banking Monaco by sending an email to the following address : list.mon-privmonaco-dpo@socgen.com

Please contact Omar Otmani, the Data Protection Officer of Societe Generale Private Banking Switzerland by sending an email to the following address : sgpb-gdpr.ch@socgen.com.

You need to make a claim?

 Any claim addressed to Societe Generale Private Banking France should be sent by e-mail to the following address : FR-SGPB-Relations-Clients@socgen.com or by mail to : 

Société Générale Private Banking France
Direction Commerciale
29 boulevard Haussmann CS 614
75421 Paris Cedex 9

The Bank will acknowledge your request within 10 days after receipt and provide a response to your claim within 60 days of receipt. If your request requires additional processing time (e.g. if it involves complex researches…), the Bank will inform you by mail. 

In the event that the response you receive does not meet your expectations, we suggest to contact : 

 

The Societe Generale Group’s Ombudsman

The Societe Generale Group’s Ombudsman can be contacted by the following website : mediateur.societegenerale.fr  or by mail :

Le Médiateur auprès de Société Générale
17 Cours Valmy 
92987 PARIS LA DEFENSE CEDEX 7
France

In reviewing any matter, the Ombudsman undertakes the consideration of both the client’s and the bank’s point of view, evaluates arguments from each of the parties and makes a decision in all fairness.

The Group’s Ombudsman will respond to you directly within two months of receipt of the written submissions of the parties relating to the claim.

 

The Ombudsman of the AMF

The Ombudsman of the Autorité des Marchés Financiers (AMF) can be contacted at the following address :

Médiateur de l'AMF, Autorité des Marchés Financier
17 place de la Bourse
75082 PARIS CEDEX 02
FRANCE


The Insurance Ombudsman

Please contact the Insurance Ombudsman : contact details must be mentioned in your insurance contract.

To ensure that your requests are handled effectively, any claim addressed to Societe Generale Bank & Trust should be sent to:

Private banking Claims department
11, Avenue Emile Reuter
L-2420 Luxembourg

The Bank will acknowledge your request within 10 days and provide a response to your claim within 30 days of receipt. If your request requires additional processing time (e.g. if it involves complex research), the Bank will inform you of this situation within the same 30-day timeframe.

In the event that the response you receive does not meet your expectations, we suggest the following :

Initially, you may wish to contact the SGBT Division responsible for handling claims, at the following address:

Corporate Secretariat of Societe Generale Bank & Trust
11, Avenue Emile Reuter
L-2420 Luxembourg

If the response from the Division responsible for claims does not resolve the claim, you may wish to contact Societe Generale Bank & Trust's supervisory authority, the Commission de Surveillance du Secteur Financier (Financial Sector Supervisory Commission) :

By mail: 283, Route d’Arlon L-1150 Luxembourg
By e-mail:direction@cssf.lu

 Any claim addressed to Societe Generale Private Banking Monaco should be sent by e-mail to the following address: servicequalite.privmonaco@socgen.com or by mail to our dedicated department : 

Societe Generale Private Banking Monaco
Middle Office – Service Réclamation 
11 avenue de Grande Bretagne
98000 Monaco

The Bank will acknowledge your request within 2 days after receipt and provide a response to your claim within 10 days of receipt. If your request requires additional processing time (e.g. if it involves complex researches…), the Bank will inform you of this situation within the same 30-day timeframe. 

In the event that the response you receive does not meet your expectations, we suggest to contact the Societe Generale Private Banking Direction that handles the claims by mail at the following address : 

Secrétariat Général de Societe Generale Private Banking Monaco 
11 avenue de Grande Bretagne 
98000 Monaco

Any claim addressed to the Bank can be sent by email to: sgpb-reclamations.ch@socgen.com
Clients may also contact the Swiss Banking Ombudsman : www.bankingombudsman.ch

Buying or holding a secondary residence in France: what are the wealth impacts for Luxembourg tax residents?

Buying or holding a secondary residence in France is invariably a question of love at first sight than a straightforward real estate investment. But even if your property is for your own personal use, there are a number of wealth impacts you should consider from the time of acquisition.

In this article, Societe Generale Private Banking, a major player in the French and Luxembourg banking landscape, gives an overview of the key considerations for Luxembourg tax residents who have a secondary residence in France.

Acquisition fees and taxes

In France, real estate transactions must be established by notarised deed and registered with the French public land registry (service de la publicité foncière). This mandatory registration involves a tax payment at the buyer’s expense, the amount of which will depend on where the asset is located (around 7% in most cases(1)), and is in addition to notary emoluments (around 1% of the sales price). If acquiring shares in a company holding property in France, there may be a 5% duty payable in France and based on the market value of the shares(2).

How can you best structure the holding of your secondary residence in France?

Property can be acquired directly or through a company, such as a real estate investment company, registered in either France(3) or Luxembourg(4).Holding property through a company is often in anticipation of a free transfer of assets (shares in the real estate investment company rather than the property itself), especially in the case of multiple heirs. This is a way of avoiding the inherently problematic issues of co-ownership, and of arranging the management of the property independently of its holding by adapting the governance by-laws. It is possible to associate the next generation to the company’s capital from its creation, or to donate shares at a later stage either in the form of full ownership or through the division of property. Worth noting is that the division of property, which only transfers bare ownership, reduces the gift tax amount based on the usufructuary’s age. The younger the usufructuary, the greater the reduction on the bare ownership value(5).

The impacts of free transfers

Whether the property is held directly or through a company, including foreign companies, such gifts must be registered in France and, as such, may be subject to French duties on the free transfer of assets (DMTG — droits de mutation à titre gratuit)(6). Luxembourg does not require gifts of property located outside the country to be registered. Gifting company shares by notarised deed may, however, be subject to a registration duty of a maximum of 2.4% for direct heirs(7). Duties on the transfer of real-estate company shares (DMTG) with little capital are generally minimal as they are calculated based on the market value of the shares (assets — liabilities). The liabilities side of the company’s balance sheet could include amounts due to banks and/or to partners (partner’s current account). Indeed, if there is not enough revenue to cover its overheads, the partners will need to inject liquidity into the company — a common occurrence in the case of property held for personal use. This involves booking a partner’s current account as a liability (receivables from partners). While such accounts may seem innocuous, they could become a problem when a partner wishes to execute the transfer strategy they set up during their lifetime. Again, this is because France and Luxembourg do not have a treaty in place to avoid double taxation on inheritance tax. DMTG could therefore apply to the value of the partners’ current account:

  • If the company holding the property is French,

  • Or if the partner’s heir has been living in France for more than six of the 10 last years.

It is important therefore to factor in and mitigate the difficulties that come with transferring a partner’s current account, particularly when the heirs are tax residents in Luxembourg.

Occasionally letting out your property: important points

While infrequent, the owner of a property held for personal use may decide to let it out from time to time when they are not there(8). In French legislation, a distinction is made between “bare” letting (unfurnished, minimum lease of three years), and “furnished” letting which, from a tax perspective, qualifies as a commercial activity and its income as industrial and commercial profit (BIC), rather than income from property. Furnished lettings fall under one of two French tax schemes: the régime micro-BIC scheme(9) or the régime réel(10).  Irrespective of the chosen tax scheme, the net rental income will be taxed at the progressive income tax rate applicable in France. However, the calculated tax amount may not be below a certain tax rate(11). The income will also be subject to social contributions (17.2%, or 7.5% if the taxpayer is not affiliated to a mandatory French social security regime(12)), as well as to social charges in some cases. While a furnished rental can be attractive from a tax perspective, some caution is required for properties held through a real estate investment company, or SCI: they are fiscally translucent (with respect to income tax) and as such may not have a furnished letting business, otherwise it would automatically have to pay corporate tax. This would give rise to a number of important consequences:

  • Tax impacts when the partners decide to estimate the revenues of the SCI;

  • Having to pay the SCI rental income at market value when partners wish to make use of their property;

  • A less attractive tax regime on real-estate capital gains versus an SCI subject to income tax.

Lastly, according to the tax treaty between France and Luxembourg on income tax, income derived from property in France is not taxed in Luxembourg(13). This income must nevertheless be declared in Luxembourg in order to determine the actual tax rate to be applied to the taxpayer’s other taxable revenue.

What are the advantages of taking out a bank loan?

 

By definition, property that is held for personal use is not meant to generate income. So does is make sense to take out a bank loan for the acquisition?  The decision to do so is strictly economic, as the cost of the bank loan and the expected returns of financial investments are weighed up. This trade-off approach is all the more relevant in a low interest rate environment, where the returns on a portfolio invested on the market can be higher than the cost of the loan. Taking out a loan from the bank can also have tax impacts:

  • The interest paid on the loan can count as an expense that can systematically be charged against any income derived from the property.

  • In some cases, the outstanding loan principal(14) can lower the market value of the property liable to French real estate wealth tax (IFI - impôt sur la fortune immobilière)(15).

  • If the acquisitions take place through a company that takes on debt, the loan can reduce the tax base if a gift of company shares up to the market value of such shares.

In conclusion, acquiring property for your own personal use in France does have implications for your wealth. It is a decision that should involve careful reflection on how to best structure and plan for the possible transfer your asset.

 


1/ Excluding the French metropolitan departments of Indre, Isère and Morbihan where an overall rate of around 6% applies.

2/ This concerns all unlisted companies, irrespective of nationality, whose real estate operations are predominantly in France on the day of sale and in the year preceding the sale. The acquisition deed must be registered in France in the month following the transaction.

3/ Fiscally translucent by default (subject to income tax), except in special cases. See below.

4/ The Luxembourg real-estate investment company is fiscally transparent, meaning that its partners are subject to income tax in France. This kind of structure, however, requires following specific tax procedures.  

5/ For example, if the usufructuary is aged between 51 and 60 years, the fiscal value of the bare ownership in France is set at 50% of the full ownership value. Note that in Luxembourg the same logic applies to the division of property (with a one-year difference in the tax scale).

6/ In the case of direct heirs, the market value of the transferred assets is taxed at a progressive rate with a marginal tax bracket of 45% (>EUR 1.8 million). The children benefit from an allowance of EUR 100k that is renewable every 15 years.

7/ No tax treaty having been concluding between France and Luxembourg in this regard, situations of double-taxation may arise.

8/ Contingent on permission obtained from the local council, and provided that the furnished letting is registered as a business with the registrar of the commercial court in order to obtain a business registration number (Siret).

9/ The micro-BIC scheme applies a 50% allowance for expenses to total rental income, and the paperwork for filing the tax returns is very straightforward.

10/ Under this scheme, actual expenses can be deducted from rental income, and the depreciation of the value of the property (excluding the land value), furniture and equipment can also be deducted under certain conditions. However, it does involve a lot of filing formalities. There is no limit on the amount of profit to be eligible for this tax scheme.

11/ Minimum rate of 20% for revenue below the second tax band for income tax (i.e. EUR 25,710) and 30% thereafter. In some cases, these minimum tax rates can be scrapped.

12/The taxpayer must, however, be affiliated to a social security regime in the EEA or in Switzerland. Note that it is possible to be registered with Luxembourg’s national health insurance (CNS) and be affiliated to the French social security regime. This may be the case for people who are employed in France, or who receive their pension in France.

13/ Treaty of 20 March 2018 to avoid double taxation and prevent income tax and wealth tax evasion and fraud.

14/ With respect to this wealth tax, the theoretical amortisation of bullet loans must be calculated on a straight-line basis.

15/ The IFI trigger threshold is set at EUR 1.3 million net taxable wealth. The net value of real estate assets held directly or indirectly by the taxpayer is subject to a progressive tax rate with a marginal tax bracket set at 1.5% (>EUR 10 million). The French tax authorities recently commented on the treaty of 20 March 2018 between France and Luxembourg, but gave no particular interpretation with respect to the IFI. However, according to many experts’ reading of the text, only real estate assets held directly or through fiscally transparent companies may be concerned by the French IFI.

Would you like to discuss this subject further with us?

Societe Generale Private Banking is the business line of the Societe Generale Group operating through its headquarters within Societe Generale S.A. and through departments, branches or subsidiaries, located in the territories mentioned below, acting under the brand names "Societe Generale Private Banking", and "Kleinwort Hambros". This document is for information purposes only. The content of this website is not intended to provide an investment service. Its content is not intended to provide an investment service, nor does it constitute investment advice or a personalised recommendation on a financial product, nor insurance advice or a personalised recommendation, nor a solicitation of any kind, nor legal, accounting or tax advice from of any entity under the authority Société Générale Private Banking. The information contained herein is provided for information purposes only, is subject to change without notice, and is intended to provide information that may be useful in making a decision. Past performance information that may be reproduced is not a guarantee of future performance. Before subscribing to an investment service, financial product or insurance product, the potential investor (i) must read all the information contained in the detailed documentation for the service or product in question (prospectus, regulations, articles of association, key investor information document, term sheet, information notice, contractual terms and conditions, etc.), in particular those relating to the associated risks; and (ii) consult its legal and tax advisors to assess the legal consequences and tax treatment of the product or service being considered. His private banker is also at his disposal to provide him with further information, to determine with him whether he is eligible for the product or service envisaged, which may be subject to conditions, and whether it meets his needs. Consequently, Société Générale Private Banking cannot be held responsible for any decision taken by an investor based solely on the information contained in this document. This document is confidential, intended exclusively for the person to whom it is given, and may not be communicated or brought to the attention of third parties, nor may it be reproduced in whole or in part, without the prior written consent of Société Générale Private Banking. Societe Generale Group maintains an effective administrative organization that takes all necessary measures to identify, control and manage conflicts of interest. To this end, Societe Generale Private Banking entities have put in place a conflict of interest management policy to manage and prevent conflicts of interest. For more details, Société Générale Private Banking clients can refer to the Conflict of Interest Policy available on request from their private banker. S ociété Générale Private Banking has also put in place a policy d he processing of claimsmade pa available on request from their private banker or on the Société Générale Private Banking website. This document is distributed in Luxembourg by Société Générale Luxembourg, a public limited company (société anonyme) registered with the Luxembourg Trade and Companies Registry under number B 6061 and a credit institution authorised and regulated by the Luxembourg Financial Sector Supervisory Commission ("CSSF"), under the prudential supervision of the European Central Bank ("ECB"), whose registered office is located at 11, avenue Emile Reuter - L 2420 Luxembourg The opinions, views and forecasts expressed in this document (including its annexes) reflect the personal opinions of the author(s) and do not reflect the opinions of any other person or of Société Générale Luxembourg, unless otherwise indicated. This document has been prepared by Societe Generale. The CSSF has not carried out any analysis, verification or control on the content of this document. For more information, click here.