Isle de France Sold

[cassidain]

Cassadain (M. Un Peu de Français),

It appears that you just taught me a little French. I hadn't been aware of the expression amha, but I see that it stands for à mon humble avis. I think that the h in humble is an h muet. So, the n in mon is pronounced [mɔ̃nœ̃bl], n'est-ce pas? Another question - I see that you use the accent grave over the capital A. Aren't accents put over capitals almost exclusively for artistic typographic effect?

As for l'accentuation des majuscules:
En français, « l'accent a pleine valeur orthographique[SUP]2[/SUP] ». L'Académie française recommande donc l'usage d'accent ou tréma sur une majuscule, tout comme l'utilisation de la cédilleet de la ligature. Ainsi les publications de qualité écrivent-elles les majuscules (tout comme les capitales) avec les accents et autres diacritiques, au même titre que les minuscules. En effet, les signes diacritiques ont un rôle important dans les langues qui les utilisent.

Par exemple, on trouve écrit en règle générale État, mais Etat dans des publications françaises moins soignées.

As for ÀMHA, it's a bit tongue-in cheek as I don't think many French employ it. Those that do recognize it as a translation of English internet shorthand (IMHO), I think. I think you have the pronunciation correct.

Note that Pascale, une vraie française, never deigns to bother herself with accents at all!

 

[JEK]

As part of a group not a sole investor. But the isle de France sale doesn't surprise. Most financial groups don't really want to be in the hotel business. And they have a good hotel management company in place since last year. Probably the last piece needed for such a sale.

This would indicate that the management company is out. I have the feeling all the minority partners may be out.

"LVMH’s hotel management will be operating the hotel, as part of what it called a “natural extension of LVMH’s activities across the luxury spectrum. The company operates several hotel properties around the world, including ones in the Maldives, Saint Tropez and Paris, among others.”

LVMH Buys Hotel Saint-Barth Isle de France in the Caribbean

By Nadya Masidlover
PARIS--LVMH Moet Hennessy Louis Vuitton SA (MC.FR) Wednesday said it has purchased Hotel Saint-Barth Isle de France in the Caribbean, the latest in a series of acquisitions by the world's largest luxury group.
LVMH said that it bought the hotel, located at the seafront on the island of Saint Barthelemy in the French West Indies, from majority owner Adventurous Journeys Capital Partners and others for an undisclosed sum.
The company described the move as "a natural extension of LVMH's activities across the luxury spectrum," in a statement.
The deal comes hot on the heels of two other purchases by the luxury giant and underscores the wide-ranging scope of the company's luxury interests. Earlier this month it paid 2 billion euro ($2.66 billion) for a majority stake in fine-wool retailer Loro Piana and bought high-end pastry maker Pasticceria Confetteria Cova Srlfor an undisclosed amount in late June.
Though LVMH's sales are dominated by its fashion and leather good's division-- which made up around 35% of its EUR28.1 billion revenue in 2012--, the industry leader has developed a broad portfolio of high-end businesses over the years. The company counts among its labels, names such as high-end jeweller Bulgari, watch-maker TAG Heuer and champagne brands Moet & Chandon and Dom Perignon.
LVMH said the Hotel Saint-Barth Isle de France will be operated by the company's hotel's division, home to the Cheval Blanc in Courchevel--one of France's most exclusive holiday resorts-- and White 1921 hotel in Saint Tropez on the French Riviera. The division is also currently working on the development of another resort, Maisons Cheval Blanc in the Maldives.
"Given LVMH's global-leadership in the luxury industry, it is well-positioned to attract travelers from around the world to its properties," said LVMH.
The Hotel St Barth Isle, located on Flamands Beach close to the island's main town Gustavia, is a five-star offering with 39 rooms. According to the hotel website, the cost for a one night stay range from EUR510 to several thousand euros.




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[Peter NJ]

Aj Capital is mostly hotel holdings, but as VCs they need to flip the nickel when the time is right.

http://www.ajcapitalpartners.com

These guys have purchased Maliahouna Resort on AXA

 

[Islander]

It is always interesting for such a large corporation (LVMH) to establish business interests in a tax haven such as St Barths, especially when the said corporation is one of the most profitable companies in France.... but what do I know?

Accent sur les majuscules: Cass is right, very few French bother doing that. I can't speak for Pascale, but I suspect that she's using a computer bought in the US? (I know you can still find the "accents" but not as easily). I believe this is the same for most of the posters here.....?

 

[elgreaux]

I think it's easy to use accents on a MÀC... but most French people I know don't use them on all CAP words such as THEATRE when in a title or headline...

as for LVMH, the tax question is interesting, you have to be a fiscal resident of the island for 5 years before being exempt from French income taxes and other (and you always pay on your properties off island), but as they bought an existing business, most likely with their own corporation not the existing one, who knows?

 

[Islander]

The LVMH group probably bought the existing local company (which has been established for more than 5 years) to benefit from the zero income tax status (why wouldn't they?). Obviously these tax benefits wouldn't apply to the group, only to the locally established business. But you're right, who knows the details of such tax arrangements?

When wealthy French individuals (such as rock stars, for example) or corporations (such as LVMH) settle down on the island, one can't avoid thinking about the tax benefits.

Bernard Arnault, the CEO of LVMH, made the headlines in France a few months ago when he decided to move his fiscal residence to Belgium to avoid paying the "ISF" (impôt sur la fortune). Eventually, seeing the bad publicity that such a move would create, he decided to stay in France.

Oh, did I forget to mention that Bernard Arnault is the richest man in France, and the 18th richest worldwide according to Forbes? (his personal fortune is estimated at 29 billion USD - January 2013 / Wikipedia quote).

St Barths used to be called the "St Tropez of the Caribbean". I think we can now safely call it "The Monaco of the Caribbean".

 

[MIke R]

St Barths used to be called the "St Tropez of the Caribbean". I think we can now safely call it "The Monaco of the Caribbean".

Ya think?

 

[elgreaux]

I doubt that Bernard Arnault will actually live here, so it won't affect his personal tax status. The income of the hotel is another matter and there are also the "defiscalisation" laws that allow metropoles to invest in the DOM, TOM, and COM for tax breaks...

 

[Petri]

St Barths used to be called the "St Tropez of the Caribbean". I think we can now safely call it "The Monaco of the Caribbean".

LVMH Group != Bernand Arnault from tax perspective. Has a lot of wealthy people moved to St. Barth for their taxable income? The 5 year rule Ellen mentions doesn't sound too good for them. Monaco is the place for your personal income, corporations can do it elsewhere easily, too.

 

[elgreaux]

The 5 year rule is pretty strict, we have tenants in our rental studio for example who are in their first year in St Barth, their income is taxed and will be for 5 years... ditto for all French people who live and work here. Makes it a bit complicated for employers to have local and imported workers have the same take home pay...Other Europeans would have to see what the tax laws are in their own country as to paying taxes when living or working out of their home country... Americans are subject to paying income tax on their worldwide income with a deduction of foreign taxes up to a certain point as to not pay twice.. so the 5 year rule is primarily for metropolitan French, as I understand it...

 

[Petri]

In Monaco non-french people don't pay income or wealth tax since day 1. The french people in Monaco pay the french taxes, thus the interest in Belgium from both France and the Netherlands (Belgium has been the "tax haven" for these countries for years). In Switzerland these people make a deal with the canton how much they pay taxes.

 

[Islander]

I doubt that Bernard Arnault will actually live here, so it won't affect his personal tax status. .

I never said so. Mr Arnault is obliged to pay taxes in France to maintain business credibility towards the French public & customers. That is why he didn't go to Belgium.

Has a lot of wealthy people moved to St. Barth for their taxable income? The 5 year rule Ellen mentions doesn't sound too good for them. Monaco is the place for your personal income, corporations can do it elsewhere easily, too.

Yes, many "wealthy" French citizens established fiscal residence in St Barths (before AND after the 5 year rule). Their island investments (read "real estate") is usually self-funded through their tax benefits (5 years is not considered a very long time in real estate).

Monaco: is a tax haven for wealthy individuals from all over the world, except France. Monaco's special tax status was granted by France on the condition that only non-French individuals could benefit from the tax-free status.

 

[Petri]

Just don't remind people of the Monte-Carlo Casino and the numerous high-rises there

 

[Islander]

Makes it a bit complicated for employers to have local and imported workers have the same take home pay...

Not really. The employer pays a gross salary (before tax) to their employees. This salary should be equal for all regardless of the tax status of each employee (5 years island residence or less). The tax payment is then the responsibility of each individual resident. Therefore it is not an "employer's problem".

Other Europeans would have to see what the tax laws are in their own country as to paying taxes when living or working out of their home country....

EU tax regulations are very complicated. DTA (Double Tax Agreements) are in place between most EU countries as far as income tax is concerned. Simply:

1. 5 years+ on the island: fiscal resident in St Barths (zero income tax rate)
2. 5 years or less on the island: fiscal resident in the country of residence OR country of employment (within the EU). The tax payer can decide where income tax will be paid. In this case St Barths = mainland France.