The fiscal advantages of Real Estate Civil Society (SCI) in 2025

Société Civile Immobilière (SCI) is a real estate management structure that offers several interesting tax advantages, especially in 2025. In this article, we will explore the various aspects of SCI taxation, its implications for associates, and how it can be used to optimize real estate asset management. Whether you are an investor or an individual looking to manage a property, SCI can offer solutions adapted to your needs.

Key points

• SCI makes it possible to manage real estate without going through joint ownership.
• The partners are responsible for the debts according to their shares.
• An allowance on capital gains is possible after 22 years of ownership.
• Partners can choose between income tax or corporate tax.
• Family SCI offers specific tax advantages.
• Tax reporting rules must be respected to avoid sanctions.
• The transmission of assets is facilitated thanks to SCI.
• Collective asset management makes it possible to share risks and responsibilities.

The characteristics of Real Estate Civil Society (SCI)

Definition of SCI

Real Estate Civil Society, or SCI, is a legal structure designed primarily for the management of real estate owned by several people. It simplifies the management and transmission of real estate assets, thus avoiding the complications associated with joint ownership.. Basically, instead of each having one end of a building, you have shares in a company that owns the building. It's easier for a lot of things, especially when it comes to selling or transmitting.

How SCI works

The operation of an SCI is based on statutes that define the management rules, the powers of the manager, and the rights and obligations of the partners. Important decisions are taken at a general meeting, where each partner votes according to the number of shares they hold. SCI can acquire, manage, and rent real estate. The income generated is then distributed to the partners, in proportion to their participation in the share capital. It's a bit like a small family business, but with buildings instead of products.

The partners of the SCI

An SCI must include at least two partners, without a maximum. These partners can be natural or legal persons. Their liability is indefinite, which means that they are responsible for the debts of the SCI in proportion to their share in the share capital.

Here are some important points about associates:

• Minimum number: 2 partners
• Type of partners: Natural or legal persons
• Responsibility: Indefinite and proportionate to shares

The types of SCI

There are several types of SCI, each adapted to specific needs. In particular, we find:

1. Family SCI: Intended for the management of real estate within the same family.
2. The rental SCI: Focused on the rental of real estate.
3. The construction-sale SCI (SCCV): Used for the construction of buildings for sale.
4. The SCI of attribution: Aims to divide a building into lots allocated to the partners.

Creation formalities

The creation of an SCI involves several administrative steps. It is necessary to draft the articles of association, constitute the share capital, publish a notice of incorporation in a newspaper of legal announcements, and register the SCI in the Trade and Companies Register (RCS). It's a bit like starting a small business, but with specific real estate papers.

The statutes of the SCI

The statutes of the SCI are a fundamental document that regulates the operation of the company. In particular, they define:

• The social purpose of SCI
• The duration of the SCI
• Decision-making rules
• The procedures for the transfer of shares

Drafting the articles of association is a crucial step, as it determines the rules of the game for all partners. It is strongly recommended to call on a professional (notary, lawyer) to ensure the conformity of the statutes and their adaptation to the specific needs of the SCI.

The tax advantages of SCI

The Real Estate Civil Society (SCI) offers several tax advantages, making it an interesting structure for the management and transfer of real estate. The choice of tax regime is crucial to maximize these benefits. You can choose between income tax (IR) and corporation tax (IS), each having its own specificities.

Exemption on capital gains

The SCI, under certain conditions, can benefit from exemptions on real estate capital gains. These exemptions are linked to the length of ownership of the property. The longer the holding period, the greater the tax deduction. This is a point to consider when planning to sell a property.

Tax relief after 22 years

A major advantage of SCI is the progressive tax deduction on capital gains depending on the length of ownership. After 22 years, a significant reduction applies, up to a total exemption after 30 years. This encourages the long-term management of real estate assets.

Choice of tax regime

The choice between IR and IS is decisive. Under the IR regime, profits are directly taxed at the level of the partners, according to their tax bracket. Under the corporate income tax regime, the SCI is taxed on its profits, and the partners are taxed on the dividends they receive. The choice depends on the personal circumstances of the partners and their goals.

Optimization of taxation

SCI allows taxation to be optimized through several mechanisms. For example, the deduction of expenses related to the management of assets (works, loan interests) can reduce the tax base. In addition, the possibility of choosing between IR and IS offers flexibility to adapt taxation to changing circumstances.

Income statement

The return of income from an SCI depends on the tax regime chosen. Under the IR regime, each partner declares his share of property income on his personal declaration. Under the corporate income tax regime, the SCI must file a specific income statement. It is important to comply with reporting obligations to avoid sanctions.

Benefits for family SCIs

Family SCIs benefit from specific advantages, in particular in terms of wealth transmission. The donation of shares is more fiscally advantageous than the direct donation of real estate, thanks to the allowances applicable to family donations. This facilitates the gradual transmission of wealth to subsequent generations.

A family SCI is a powerful tool for organizing the transfer of real estate assets. It protects assets, facilitates management and benefits from significant tax advantages. However, it is essential to fully understand the rules and implications of this structure before you start.

Here is a simplified comparative table of tax regimes:

SCI taxation in 2025

Income tax

Income tax (IR) is the default tax regime for an SCI. This means that the profits made by the SCI are directly taxed in the hands of the partners, in proportion to their share in the share capital. Each partner reports their share of profits on their own tax return, as if he had received this income directly. It is important to note that even if profits are not distributed, they are still taxable. This regime is often preferred for family SCIs or when partners have relatively low tax rates. It is necessary to fully understand the How an SCI works to fully understand taxation.

Corporate taxation

Unlike IR, corporate tax (IS) is a tax option for SCI. In this case, it is the SCI itself that is subject to tax on its profits. The standard IS rate is currently 25%, but a reduced rate may apply under certain conditions. Partners are only taxed when dividends are paid out. The option for IS may be interesting if the partners want to reinvest the profits in the SCI. without being immediately taxed. However, you have to weigh the pros and cons carefully, as this choice is usually irrevocable.

Capital gains tax regime

The tax regime for capital gains in SCI depends on the tax regime chosen. In the case of IR, real estate capital gains are taxed according to the regime of real estate capital gains for individuals. This means that a detention allowance applies, allowing total exemption after 22 years. In case of corporate income tax, capital gains are considered profits and are therefore subject to corporate income tax. It is therefore important to anticipate the transfer of shares to optimize taxation.

Impact of length of detention

The duration of ownership of SCI shares has a significant impact on the taxation of capital gains, especially in the case of IR. The longer the period of detention, the greater the reduction, up to a total exemption after 22 years for income tax and 30 years for social security contributions. It is therefore crucial to take this element into account in the SCI management strategy. Here is a summary table of allowances for length of detention:

Reporting rules

An SCI's income reporting rules vary depending on the tax regime. In case of IR, the SCI must fill out a 2072 declaration, which summarizes property income and deductible expenses. Each partner must then report their share of profits on their own tax return (form 2042). In case of IS, the SCI must complete a 2065 declaration, which details the fiscal result of the company. It is important to respect the reporting deadlines to avoid penalties. It is important to know how Declare income of an SCI.

Comparison of tax regimes

The choice between IR and IS is an important decision that must be taken according to the specific situation of the SCI and its partners. IR is often simpler and more beneficial for family SCIs, while IS may be more suitable for SCIs who want to reinvest their profits. It is recommended to do a tax simulation to compare the two regimes and to be accompanied by a chartered accountant to make the best decision.

Choosing the tax regime is a crucial step in the life of an SCI. It is important to carefully analyze the pros and cons of each option before making a decision. A bad decision can have significant consequences on the taxation of the SCI and its partners.

The implications of income tax

Definition of income tax

Income tax (IR) is a tax that each partner of a Real Estate Company (SCI) must pay on their share of the profits made by the company. Unlike corporate tax (IS), IR is not paid directly by the SCI itself, but by each partner individually. The amount of tax depends on the tax bracket of each partner and their share in the profits of the SCI. It's a bit like each partner receiving their share of the rent directly and declaring it for tax purposes.

Tax calculation for partners

Calculating income tax for SCI partners is quite simple, in theory. Each partner declares his share of the SCI's profits in his personal tax return, in the section dedicated to property income. This portion is then added to his other income (salaries, pensions, etc.) to determine his total taxable income. The tax is then calculated using the progressive income tax schedule. It is important to note that even if profits are not distributed, they are still taxable.

Benefits of IR for SCI

One of the main benefits of IR for an SCI is its simplicity. Accounting is generally less complex than under the IS regime. In addition, in the event of a land deficit (for example, if the expenses are greater than the income), this deficit can be deducted from the partner's overall income, up to a limit of €10,700 per year. The excess can be carried forward to the following 10 years. This is a significant advantage for SCI who carry out major work or who have high financial burdens.

Disadvantages of IR

Despite its advantages, IR also has its drawbacks. The main thing is that profits are taxed even if they are not distributed. This can be a problem if the SCI needs to reinvest profits for work or new acquisitions. In addition, if the associate already has a high income, his share of SCI profits can push him into a higher tax bracket, thus increasing his overall tax.

Possible exemptions

There are a few possible income tax exemption cases for SCIs, but they are quite rare and specific. For example, some real estate capital gains may be exempt if the SCI has held the property for more than 22 years (thanks to the deduction for length of ownership). It is important to be well informed about the conditions of application of these exemptions, as they may vary depending on the situation of the SCI and the partners.

Practical taxation cases

To illustrate IR taxation in concrete terms, let's take a few examples. Let's imagine an SCI with two partners, which makes a profit of €20,000. Each partner therefore declares €10,000 in their tax return. If one of the partners has a taxable income of €30,000, their total income will be €40,000, and their tax will be calculated on this basis. If the SCI has a deficit of €5,000, each partner will be able to deduct €2,500 from their overall income, up to a limit of €10,700.

It is important to note that the choice between RI and IS is a strategic decision that must be made based on the specific situation of the SCI and the objectives of the partners. It is advisable to be accompanied by a chartered accountant or a tax consultant to make the best choice.

The implications of corporate tax

Definition of corporate tax

Corporate tax (IS) is a tax that corporations must pay on their profits. Unlike income tax (IR), where profits are directly taxed in the hands of the partners, with IS, it is the company itself that is taxed. This choice can have significant consequences on the overall taxation of the SCI and its partners.

Conditions of coverage

An SCI is not automatically subject to IS. By default, it falls under the IR. To opt for IS, a decision must be taken by the partners and notified to the tax authorities. This option is generally irrevocable, except in exceptional cases. You have to weigh the pros and cons carefully before making this choice.

Benefits of IS for SCI

IS can have advantages in some situations. For example, if the SCI wishes to reinvest its profits, corporate income tax may be more interesting because it makes it possible not to immediately tax the partners on these amounts. Additionally, IS can facilitate deduction of certain expenses, such as depreciation, which can reduce the tax base.

Disadvantages of IS

IS also has its drawbacks. The main one is the double taxation of profits: first at the level of the company, then a second time when dividends are distributed to the partners. In addition, in the event of an increase in value when selling a property, calculating the tax can be more complex than with IR.

Comparison with IR

The choice between IS and IR depends on the specific situation of each SCI. IR is often easier to manage and can be beneficial if associates have low tax rates. In turn, IS may be preferable if the SCI has significant profits and wants to reinvest them. It is therefore important to do a simulation before making a decision.

Practical taxation cases

Let's take a few examples to illustrate the impact of IS. Imagine an SCI that makes a profit of €50,000. If it is subject to income tax, it will pay tax on this profit (the normal rate is 25% in 2025, but a reduced rate may apply under certain conditions). If it is at the IR, each partner will be taxed on their share of the profit, according to their own tax rate. The best choice will therefore depend on the tax rates of the partners and the SCI's projects.

It is important to note that the choice of tax regime is a strategic decision that must be taken taking into account the personal circumstances of the partners and the goals of the SCI. It is strongly recommended to be accompanied by a chartered accountant or a tax consultant to make the best choice.

Tax allowances in SCI

Allowance for length of detention

The deduction for duration of ownership is an advantageous tax mechanism that reduces, or even eliminates, the capital gain tax when selling real estate owned by an SCI. The longer the period of detention, the greater the reduction. This is a key element to consider in an SCI's tax strategy.

Conditions of application

To benefit from this allowance, certain conditions must be met. The main one is the length of ownership of the property. The starting point for calculating this duration is the date the property was acquired by the SCI. It is important to note that the rules may vary depending on the legislation in force at the time of transfer. You must also take into account the SCI tax regime, as the rules may differ between IR and IS. La real estate capital gain is an important element to take into account.

Full exemption after 22 years

One of the major advantages of the deduction for a period of detention is the possibility of total exemption from capital gains tax after a certain period of time. In general, this exemption is acquired after 22 years of detention for income tax and 30 years for social security contributions. This encourages associates to consider SCI as a long-term investment.

Impact on the sale of shares

The holding period allowance does not only apply to the sale of real estate, but also to the sale of shares in SCI. However, the calculation of the length of detention is different. It is based on the date the shares were subscribed by the partner, and not on the date the assets were acquired by the SCI. This can have a significant impact on the taxation of the transfer.

Calculation of capital gains

Calculating capital gains in SCI, and therefore the applicable allowance, can be complex. It is necessary to take into account the purchase price of the property, the costs associated with this acquisition, the work carried out, and the sale price. The reduction is then calculated by applying a decreasing percentage according to the length of detention. It is often advisable to call on a chartered accountant to optimize this calculation.

Optimization strategies

Several strategies make it possible to optimize the use of tax allowances in SCI:

• Anticipate the length of time assets will be held.
• Choose the most suitable tax regime (IR or IS).
• Carry out improvement work to increase the purchase price.
• Plan the transfer of shares or assets according to the reduction thresholds.

It is important to note that tax legislation is subject to change. It is therefore essential to stay informed of the latest changes to best optimize the taxation of your SCI. Regular monitoring and consultation with a tax expert are highly recommended.

Real estate management in SCI

Acquisition of real estate

SCI facilitates the acquisition of real estate for several people. Investing in SCI makes it possible to pool capital, thus increasing the financial capacity of partners and facilitating the obtaining of external financing, such as bank loans. It is an ideal tool for making real estate investments that would not have been possible alone.

Rental management

SCI allows simplified rental management. The rental income received by the SCI is then distributed to the partners according to their share in the share capital. This can simplify cash flow management and income reporting.

Property transfer rules

The rules for the transfer of assets within an SCI are governed by the articles of association. The transfer of shares is generally simpler and less expensive than selling the property directly. It is important to clearly define the terms of sale in the articles of association to avoid conflicts between partners.

Fiscal impact of management

The management of real estate in SCI has a direct impact on taxation. The choice of tax regime (income tax or corporate tax) influences how rental income and capital gains are taxed. Rigorous management and a good knowledge of tax rules are essential to optimize SCI taxation.

Responsibility of the partners

The liability of partners in an SCI is generally unlimited, but not joint and several. This means that each partner is responsible for the debts of the SCI in the amount of their share in the share capital. It is important to fully understand this responsibility before partnering in an SCI.

Valuation strategies

Several strategies can be implemented to value real estate owned by an SCI:

• Realization of improvement works to increase rental value.
• Optimization of rental management to maximize income.
• Renegotiation of real estate loans to reduce financial burdens.
• Diversification of real estate assets to limit risks.
• Anticipation of changes in the real estate market to seize opportunities.

The accounting obligations of the SCI

Bookkeeping

Maintaining rigorous accounting is an obligation for any SCI, although its extent may vary depending on the tax regime chosen. If your SCI is subject to Corporate Tax (IS), complete commercial accounting is imperative. This involves maintaining accounting books, drawing up balance sheets, income statements and appendices. Even under the Income Tax (IR) regime, simplified accounting is still necessary to track income and expenses. It is strongly recommended to call on an accountant to ensure compliance and optimize the financial management of your SCI.

Tax reporting rules

Tax reporting rules depend on the SCI's tax regime. Under the IR regime, each partner declares his share of property income on his personal return. Under the corporate income tax regime, the SCI must file an annual income statement (form 2065) and pay the corresponding tax. It is important to respect the reporting deadlines to avoid penalties. La legal compliance is essential for the sustainability of SCI.

Transparency requirements

Transparency is a fundamental obligation for any SCI. This involves the regular holding of general meetings, the writing of minutes, and the communication of clear and accurate financial information to partners. This transparency reinforces trust between partners. and makes it easier to make informed decisions.

Impact on taxation

The way you manage your accounting has a direct impact on the taxation of your SCI. Accurate and well-kept accounting makes it possible to justify deductible expenses, to optimize the tax result and to minimize the risks of tax recovery. The choice of tax regime, IR or IS, also influences how profits are taxed.

Penalties for non-compliance

Failure to comply with accounting and tax obligations may result in financial sanctions, such as late payment penalties, tax surcharges, or even extensive tax audits. In the most serious cases, this may even call into question the liability of the partners. It is therefore crucial to take these obligations seriously and to be accompanied by professionals if necessary.

Accounting Management Resources

Several resources are available to help you manage your SCI accounting:

• Accountants: They can assist you in keeping your accounts, preparing your tax returns and optimizing your taxation.
• Accounting software: They facilitate the entry of accounting entries, the monitoring of expenses and revenues, and the preparation of your financial statements.
• Guides and training: They allow you to become familiar with the accounting and tax rules applicable to SCI.

It is important to note that the complexity of managing an SCI's accounting can vary depending on its size, business and tax regime. Do not hesitate to be accompanied by professionals to ensure that you comply with all your obligations and optimize your tax situation.

The advantages of family SCI

The family Real Estate Civil Society (SCI) represents a legal structure that is particularly suited to the management and transfer of real estate within the same family. It offers specific benefits that are worth examining in detail.

Definition of family SCI

A family SCI is an SCI whose partners are all members of the same family, related by blood (up to the fourth degree) or by marriage (marriage, PACS). This specificity makes it possible to benefit from fiscal and management rules adapted to the family context. The main objective is often to facilitate the management of a common real estate asset and to anticipate its transmission to future generations.

Specific tax advantages

The family SCI offers several tax advantages, especially in terms of wealth transfer. It is possible to donate shares to children or other family members, taking advantage of the tax allowances applicable to donations. This makes it possible to significantly reduce inheritance taxes upon the death of the parents. In addition, the taxation of family SCI can be optimized by choosing the tax regime best suited to the family's situation (income tax or corporate tax).

Transfer of assets

One of the main advantages of family SCI lies in its ability to facilitate the transmission of real estate assets. Instead of transmitting real estate directly, which can be complex and expensive, parents transmit shares in the SCI. This transmission can be carried out gradually, for example, by giving a fraction of the shares each year to each child, within the limits of the authorized tax allowances. This makes it possible to reduce the tax base for inheritance tax and to optimize the transmitting of the family heritage.

Simplified management

The family SCI simplifies the management of real estate by grouping the property between several family members. Decisions concerning the management of assets (rental, work, sale) are taken collectively by the partners, according to the rules defined in the SCI's statutes. This avoids the blockages and conflicts that can occur in the event of joint ownership. In addition, the SCI makes it possible to designate a manager, who will be responsible for the day-to-day management of the assets and the representation of the company vis-à-vis third parties.

Property protection

Family SCI can also offer some protection of real estate in the event of financial difficulties of one of the partners. Indeed, a partner's personal creditors cannot directly seize real estate owned by the SCI. They can only seize the shares of the debtor partner, which can make the seizure less attractive and preserve the family's real estate assets.

Practical cases of family SCI

Here are some concrete examples of the use of family SCI:

• A couple wants to acquire real estate in order to rent it and receive additional income. They create a family SCI with their children, which allows them to gradually transmit the property to their heirs while benefiting from tax advantages.
• A family owns several properties and wants to simplify their management and transmission. They combine all assets within a family SCI, which facilitates decision-making and the transmission of assets to future generations.
• Parents want to help their children acquire real estate. They create a family SCI and provide the necessary funds for the acquisition. The children become SCI partners and gradually repay the parents, which allows them to become owners of the property in the long term.

Family SCI represents a powerful tool for the management and transmission of family real estate assets. It offers tax advantages, simplified management and property protection, making it an attractive solution for many families.

The disadvantages of SCI

While Real Estate Civil Society (SCI) has considerable advantages, especially in terms of asset management and transmission, it is imperative to consider its drawbacks before starting. These aspects, which are often overlooked, can significantly impact the profitability and simplicity of your real estate project.

Administrative complexity

The creation and management of an SCI involve administrative formalities. heavier than those of a direct real estate holding. It is necessary to draft articles of association, make specific tax declarations, keep rigorous accounts and organize annual general meetings. These obligations can represent a significant workload, especially for people who are unfamiliar with legal and accounting aspects.

Creation and management costs

Setting up an SCI involves significant costs. You must include the notary's fees for drawing up the statutes, the registration fees, the costs of publishing legal announcements in a newspaper, and possibly the fees of a chartered accountant to keep the accounts. These initial and recurring expenses can reduce the profitability of real estate investment.

Responsibility of the partners

One of the main disadvantages of SCI lies in the unlimited liability of the partners. In the event of company debts, creditors can turn against the personal assets of the partners, in proportion to their share in the share capital. This unlimited liability is a significant risk, especially if the SCI contracts out significant loans.

Risk of conflicts between partners

SCI involves collective management of real estate. Important decisions must be taken in agreement with the other partners. In case of disagreement, conflicts can arise and paralyze the management of the company. It is therefore essential to choose the right partners and to clearly define the operating rules of the SCI in the statutes.

Tax limitations

Although SCI offers some tax advantages, it also has limitations. For example, in the event of the resale of real estate, the capital gain is taxed according to the regime of capital gains in real estate for individuals, which may be less advantageous than the regime of professional capital gains. In addition, the choice of tax regime (income tax or corporate tax) must be carefully considered, as it can have significant consequences on the taxation of the SCI and its associates.

Alternatives to SCI

Before creating an SCI, it is important to consider possible alternatives, such as joint ownership, the creation of a family SARL or investment in your own name. Each option has its pros and cons, and the choice will depend on the individual circumstances and goals of each investor.

It is crucial to carefully weigh the pros and cons before starting to create an SCI. An in-depth analysis of your situation and your goals will allow you to determine if this legal structure is really adapted to your real estate project.

Tax optimization strategies

Choice of tax regime

Choosing the tax regime is a step crucial in the tax optimization of an SCI. You have to carefully weigh the pros and cons of income tax (IR) and corporation tax (IS). RI may be simpler, but IS can offer advantages in terms of deducting expenses and managing deficits. It is important to simulate both options with a chartered accountant.

Divestiture planning

Planning for the sale of SCI shares is essential to minimize capital gains tax. Anticipating the transfer date, knowing the applicable allowances according to the length of ownership, and optimizing the value of the shares are all elements to take into account.

Use of allowances

Tax allowances for duration of ownership are a powerful tool to reduce taxation on real estate capital gains. The longer the period of detention, the greater the reduction, up to a total exemption after 22 years for income tax and 30 years for social security contributions.

Rental income management

Rental income management can be optimized by deducting all deductible expenses (work, loan interest, management fees, etc.). It is important to keep accurate accounts and keep all supporting documentation.

Reinvestment strategies

The reinvestment of SCI profits can reduce taxes by avoiding the distribution of dividends to partners. Reinvestment can be made in new real estate, in improvement works, or in the early repayment of loans.

Tax expert consultation

SCI taxation can be complex, and it is strongly recommended that you consult a chartered accountant or a tax lawyer to benefit from personalized advice adapted to your situation. An expert can help you choose the most appropriate tax regime, optimize the management of your rental income, and plan the sale of your shares under the best conditions.

Consulting a tax expert is an investment that can save you a lot of money in the long run. It is important to choose a competent and experienced SCI professional.

The impacts of legislative changes

Tax developments in 2025

In 2025, the tax landscape of civil real estate companies (SCI) is subject to evolutions. It is important to stay up to date with the latest changes made by the government. These changes may concern tax rates, applicable allowances, or even income reporting procedures.

Impact on existing SCI

SCIs that are already in operation must adapt to new regulations. These adaptations may involve a modification of the statutes, a revision of the tax strategy, or even an update of accounting practices. It is therefore essential to anticipate these changes to avoid any inconvenience.

New tax obligations

New tax obligations may be put in place, such as additional declarations or modified tax calculation methods. Complying with these obligations is imperative to avoid financial sanctions.

Here are some examples of obligations:

• Annual property income statement.
• Property tax payment.
• Compliance with VAT rules, if the SCI is subject to them.

Adaptation of the statutes

The statutes of the SCI may need to be adapted to be in line with the new laws. This adaptation may concern the distribution of profits, the methods of decision-making, or the rules for the transfer of shares. It is recommended that you consult a legal professional to make these changes.

Predictions for the future

Future tax developments are difficult to predict with certainty. However, it is possible to anticipate certain trends, such as the simplification of administrative procedures or the harmonization of tax rules at European level. Staying up to date with parliamentary debates and government announcements can help anticipate these changes.

Resources to stay up to date

Several resources are available to keep up to date with legislative developments:

• The official website of the tax administration (impots.gouv.fr).
• Publications specialized in tax law.
• Advice from a chartered accountant or tax lawyer.

It is important to note that the information in this article is not legal or tax advice. It is recommended that you consult a professional to obtain a personalized opinion based on your situation.

The transmission of assets via the SCI

Benefits of transmission

Real Estate Civil Society (SCI) is proving to be a relevant tool for organizing the transmission of its assets, especially real estate. It makes it possible to anticipate succession and to optimize the taxation associated with this transfer. Instead of transferring real estate directly, it is the shares of the SCI that are transmitted, which can simplify the procedures and offer significant tax advantages. It is an approach that allows for more flexible and controlled estate planning.

Tax regime for transmission

The tax regime applicable to the transfer of shares in SCI is different from that applicable to the direct transfer of real estate. Transfer taxes are calculated on the value of the shares, which may be lower than the market value of the real estate owned by the SCI. In addition, it is possible to benefit from tax allowances, in particular by making successive donations of shares. This makes it possible to reduce the tax base and, therefore, the inheritance tax to be paid. It is important to fully understand the tax rules in force in order to optimize the transmission.

Succession strategies

Several strategies can be implemented to optimize the transmission of assets via an SCI. Among these, we find:

• Donation of shares with reserve of usufruct: parents give bare ownership of shares to their children while maintaining usufruct, i.e. the right to receive the income generated by real estate.
• Donation-sharing: it allows the shares of the SCI to be distributed among the heirs fairly, while fixing the value of the shares on the day of the donation.
• The use of a family SCI: this form of SCI is particularly suited to the transmission of assets, because it makes it easier to manage real estate in the family and to benefit from specific tax advantages.

Impact on heirs

The transfer of shares in SCI has a significant impact on the heirs. They become SCI partners and, as such, they have rights and obligations. They participate in decisions concerning the management of real estate and receive a share of the income generated by these properties. It is important that heirs are informed of the rules of operation of the SCI and their responsibilities as partners. SCI can also avoid indivision, a situation that is sometimes a source of conflicts.

Practical transmission cases

Let's imagine a couple owning a rental property worth 500,000 euros. Instead of transmitting the building directly to their children, they create an SCI and bring the building there. They then gradually donate shares in the SCI to their children, taking advantage of the tax allowances applicable to donations. This allows them to transmit their assets in a gradual and optimized manner. In another case, a family wants to keep real estate in the family heritage over several generations. The SCI makes it possible to structure the ownership and management of this property, by avoiding the blockages associated with indivision.

The SCI offers an advantageous legal and fiscal framework for the transmission of real estate assets. It makes it possible to anticipate succession, to optimize taxation and to facilitate the management of real estate in the family. However, it is important to be well advised by professionals (notary, lawyer, chartered accountant) to set up a transfer strategy adapted to your personal situation.

Estate planning resources

For effective estate planning through SCI, it is recommended that you consult the following resources:

1. The articles of the Civil Code relating to civil companies and successions.
2. Publications specialized in wealth law and taxation.
3. The websites of tax authorities and professional organizations (notaries, accountants).
4. Advice from professionals (notaries, lawyers, accountants) specialized in wealth law.

The specificities of SCIs with variable capital

Definition of variable capital

An SCI with variable capital is a bit like a piggy bank that can be filled or emptied more easily. Unlike a SCI with fixed capital, the amount of share capital is not set in stone from the moment of creation. It can vary over the life of the company without the need to change the statutes each time. It is a significant flexibility to adapt to the needs of the activity.

Advantages of this structure

Flexibility is the key word. With an SCI with variable capital, you can:

• Welcoming new partners more easily.
• Allow associates to withdraw without cumbersome formalities.
• Adapt the capital to the financing needs of the SCI.

This is especially useful if you expect frequent inflows and outflows of funds, or if you anticipate changes in the composition of your associate group.

Management of inputs

The management of contributions is simplified. New partners can contribute funds or real estate without requiring a systematic change in the statute. You still have to respect certain rules, especially when it comes to the valuation of contributions in kind, but overall, it's easier than with a fixed-capital SCI. Remember to clearly define the methods of contribution in the statutes to avoid unpleasant surprises.

Change in capital

The modification of capital is therefore more flexible. It is sufficient to respect the clauses provided for in the articles of association, in particular with regard to the minimum and maximum thresholds of share capital. No need to go to the notary every time, which saves time and money. This is a definite advantage for dynamic SCI management.

Fiscal impact

The fiscal impact is similar to that of a SCI with fixed capital. The tax regime (income tax or corporate tax) is independent of the nature of the capital. It is therefore necessary to choose the right tax regime according to your personal situation and the objectives of the SCI. Do not hesitate to consult a chartered accountant to make the right choice. It can help you optimize your land deficit.

Practical cases of SCI with variable capital

Imagine a family SCI that wants to facilitate the transmission of shares to children as they enter the workforce. The SCI with variable capital makes it easy to integrate children as partners, without having to change the statutes each time. Another example: an SCI that invests in properties to be renovated. It can increase its capital to finance the work, then reduce it once the property is rented. La flexibility is really a major asset.

The implications of renting in SCI

Rent tax regime

La SCI, as a legal structure, receives rent from the rental of its real estate. The tax regime applicable to these rents depends on the choice made when creating the SCI: income tax (IR) or corporation tax (IS). In case of IR, the rents are directly taxed in the hands of the partners, in proportion to their participation in the share capital. In case of IS, the SCI is taxed on the profits it makes, including the rents received, after deduction of expenses.

Declaration of rental income

The return of rental income from an SCI varies according to the tax regime chosen. Under the IR regime, each partner must declare his share of property income on his personal income tax return (Income statement no. 2042). Under the corporate income tax regime, the SCI must file an income statement (form 2065) and pay the corresponding corporate tax. It is important to clearly distinguish between deductible and non-deductible expenses in order to optimize the tax base.

Benefits of renting

Renting via an SCI has several advantages. It allows simplified management of real estate assets, especially in the case of multiple partners. In addition, it facilitates the transmission of assets, because shares are more easily transferable than real estate directly. The SCI also offers protection for the personal assets of the partners, because in principle, only the assets of the company are incurred in the event of debts.

Impact on taxation

SCI rental has a significant impact on the taxation of partners. The choice of tax regime (IR or IS) is decisive. RI can be beneficial if the associates have low land incomes or if the SCI generates land deficits, which can be attributed to the associates' overall income. IS may be preferable if the SCI wants to reinvest its profits or if the partners have significant incomes, as the IS tax rate may be lower than that of IR for the highest brackets.

Lease Management

The management of leases in SCI implies compliance with the rules applicable to real estate rentals. It is essential to draft leases in accordance with current legislation, to collect rents, to manage rental expenses and to carry out the necessary work. The SCI must also ensure that the rights and obligations of tenants are respected, as well as the management of possible disputes. If an SCI starts renting, the lease concluded with the tenant must be for a minimum period of 6 years.

Rental strategies

Several rental strategies can be implemented within an SCI to optimize its profitability and taxation. It is possible to choose between bare rentals and furnished rentals, taking into account the specificities of each tax regime. Furnished renting is a commercial activity, which does not correspond to the civil object of the SCI. However, the law allows this activity to be carried out, with the consequence of automatically taxing the company to the IS. It is also possible to modulate rents according to the market, to carry out improvement works to increase the rental value of properties, and to implement effective rental management to minimize rental vacations. A well-thought-out strategy can significantly improve SCI revenue.

SCI rental offers interesting flexibility and tax optimization, but requires rigorous management and a good knowledge of the applicable rules. The choice of tax regime and the implementation of appropriate rental strategies are essential to maximize the benefits of this legal structure.

The legal obligations of the SCI

Regulations in force

Real Estate Civil Society (SCI) is subject to a set of legal rules that it is imperative to know. These rules govern its operation, from its creation to its dissolution. They are defined by the Civil Code and other specific legislative texts. Failure to comply with these obligations may result in sanctions.

Reporting requirements

The SCI must make several declarations to the administration. This includes the declaration of its creation, its benefits, and any changes to the statutes. These declarations are essential for the transparency of the company and the respect of fiscal obligations. You have to be rigorous about deadlines to avoid penalties.

Holding of meetings

The regular holding of general meetings is a fundamental obligation for the SCI. These meetings allow the partners to make important decisions concerning the management of the company, to approve the accounts, and to appoint or dismiss the manager. Minutes must be recorded for each meeting.

Associates' rights

SCI partners have specific rights, such as the right to information, the right to vote at general meetings, and the right to participate in profits. It is important to respect these rights in order to avoid conflicts and to ensure fair management of society. The statutes of the SCI must clearly define these rights.

Penalties for non-compliance

Failure to comply with SCI's legal obligations may result in various sanctions, ranging from financial penalties to the dissolution of the company. It is therefore crucial to comply with current regulations and to be diligent in managing SCI.

Compliance resources

To ensure SCI compliance, there are numerous resources available, such as accountants, corporate lawyers, and professional bodies. It is advisable to be accompanied by these professionals to avoid mistakes and optimize SCI management.

The complexity of SCI's legal obligations may seem daunting, but a good knowledge of the regulations and adequate professional support make it possible to effectively manage the company and take full advantage of its advantages.

The advantages of SCI for investors

Access to real estate

SCI greatly facilitates access to real estate investment, even with limited initial capital. It makes it possible to pool the resources of several investors, making it possible to acquire more important assets than would be possible alone. It's a bit like setting up a project with several people, where everyone contributes their part. We can thus consider more ambitious real estate projects, such as the purchase of an entire building or several apartments.

Risk sharing

Investing in real estate always involves risks, but SCI makes it possible to dilute them. In the event of financial difficulties, the partners share the losses in proportion to their shares. This sharing of risks is a major asset, especially for beginning investors or those who want to diversify their investments without excessive exposure. It's a bit like having a safety net.

Collective management

SCI offers a framework for collective management of real estate. Important decisions are taken jointly, which makes it possible to benefit from the expertise and points of view of each other. This is particularly useful when associates have complementary skills. For example, one may be good at negotiation, while another has knowledge of construction and renovation. This synergy can lead to more effective management and better valuation of assets.

Tax optimization

The SCI offers several possibilities for tax optimization, especially in terms of wealth transmission. The choice of tax regime (income tax or corporate tax) can also have a significant impact on the profitability of the investment. It is important to carefully study the various options and to be accompanied by a chartered accountant to choose the most appropriate solution for your situation.

Management flexibility

SCI offers great flexibility in the management of real estate. The articles of association can be adapted to the specific needs of the partners, and the operating rules can be modified during the life of the company. This flexibility is a major asset in adapting to changes in the real estate market and to changes in the personal situation of partners. For example, you can decide to rent a property, sell it, or renovate it, depending on the opportunities that arise.

Practical investment cases

Here are some concrete examples of investing through an SCI:

• Purchase of a rental property by several investors.
• Acquisition of land to build housing.
• Investment in commercial premises.
• Establishment of a family real estate asset.

SCI is a powerful tool for investing in real estate, but it is important to fully understand how it works and its tax implications before you start. Good planning and professional support are essential for a successful investment project.

The challenges of managing an SCI

Managing a Civil Real Estate Company (SCI) may seem simple at first glance, but it comes with its share of challenges. It is important to know them well in order to anticipate difficulties and ensure effective and sustainable management of the company.

Conflicts between partners

Disagreements between partners are a frequent source of problems in an SCI. These conflicts may relate to asset management, profit distribution, or investment strategy. Clear and transparent communication is essential to prevent and resolve these disputes. It is important to define clear rules in the statutes and to provide mechanisms for resolving conflicts, such as mediation.

Property Management

Managing real estate owned by SCI can be complex, especially if the company owns several properties or if it carries out rental transactions. Property must be maintained, relationships with tenants managed, and legal obligations must be respected. Rigorous management is essential to preserve the value of real estate assets and avoid disputes. It is possible to delegate this management to a professional, but this involves additional costs.

Administrative complexity

SCI is subject to administrative and accounting obligations that can be burdensome, especially for people who are not familiar with these aspects. It is necessary to keep rigorous accounts, prepare tax returns, and convene general meetings. Failure to comply with these obligations may result in financial sanctions. It is therefore advisable to be accompanied by a chartered accountant or a specialized lawyer.

Risk of loss of value

Like any real estate investment, SCI is subject to the risk of loss of value of the goods. Fluctuations in the real estate market, the necessary renovation work, or even unpaid rent can impact the company's profitability. It is therefore important to diversify investments, to carry out market studies, and to provide a margin of safety to deal with the unexpected. La Transfer of assets is an advantage, but does not guarantee an absence of risk.

Conflict resolution strategies

To effectively manage conflicts between partners, several strategies can be put in place:

• Mediation by a neutral third party.
• Establishment of a supervisory board.
• Drafting of precise and complete statutes.
• Regular organization of meetings between partners.
• Possibility of selling shares in case of persistent disagreement.

Management resources

There are a number of resources available to help associates manage their SCI:

• Chartered accountants specialized in SCI.
• Lawyers specialized in real estate law.
• SCI management training organizations.
• Websites and specialized books.
• Real estate investor associations.

Managing an SCI requires rigor, transparency, and good communication between partners. It is important to be well informed and to be supported by professionals to avoid mistakes and optimize the company's profitability. Complexity can be reduced with good organization.

Future prospects for SCI

Real estate market trends

The real estate market is constantly evolving, and SCIs must adapt. We observe a digitalization increased transactions, a growing demand for ecological housing and a particular focus on the location of assets. SCIs that can anticipate these trends will be better positioned for the future.

Planned fiscal developments

Taxation is a key element for SCIs. It is important to monitor legislative changes closely, as they can have a significant impact on the profitability of investments. Tax developments could concern tax rates, allowances or reporting rules. Constant monitoring is therefore essential.

Impact of new technologies

New technologies are transforming real estate management. From online rental management tools to real estate crowdfunding platforms, SCIs have many opportunities to seize. Artificial intelligence could also play an increasing role in data analysis and decision making.

Investment opportunities

Despite economic uncertainties, the real estate market still offers interesting investment opportunities. SCIs can diversify by investing in different types of properties (housing, offices, shops) or by targeting specific geographical areas.

Economic forecasts

Economic forecasts are an important indicator for SCIs. Sustained economic growth promotes housing demand and rising prices, while a recession can lead to lower rents and difficulties finding renters. It is therefore essential to closely monitor economic indicators and to adapt your strategy accordingly.

Anticipation resources

To anticipate changes in the real estate market and taxation, SCIs can rely on various resources:

• Specialized publications
• Legal and fiscal information websites
• Financial and tax advisers
• Professional training

It is important to note that the information in this article is for informational purposes only and does not constitute legal or tax advice. It is recommended that you consult a professional for a personalized opinion.

The future of Real Estate Civil Society (SCI) seems promising. With the evolution of the real estate market and new laws, SCIs can offer attractive advantages for investors. Whether for wealth management or to optimize taxation, it is essential to be well informed. To find out more about the opportunities offered by SCI, visit our site and find out how we can help you realize your real estate projects!

Conclusion

In summary, the Real Estate Civil Society (SCI) has significant fiscal advantages in 2025. Whether it is for wealth management or for the transfer of a property, the tax advantages are there. The deduction on capital gains after 22 years of ownership is particularly interesting. In addition, the choice between income tax and corporate tax allows partners to adapt to their situation. In short, SCI is an option to seriously consider for those who want to optimize their real estate taxation.

Frequently asked questions

What is a Real Estate Civil Society (SCI)?

An SCI is a structure that allows several people to own and manage real estate together.

How does an SCI work?

Associates pool money to buy real estate. They then share the benefits and the decisions.

What are the types of SCI?

There are several types of SCI, such as family SCI, which is often used to manage assets between members of the same family.

What are the tax advantages of an SCI?

The SCI offers advantages such as the exemption from capital gains tax after 22 years, and the possibility of choosing your tax regime.

How is an SCI taxed?

An SCI can be taxed either on income or on corporations, depending on the choice of the partners.

What is the tax deduction for the duration of detention?

It is an advantage that reduces the amount of tax to be paid on capital gains, depending on the length of time the shares have been held.

What are the disadvantages of SCI?

Disadvantages include administrative complexity and creation and management costs.

How does the transfer of assets via an SCI take place?

The transfer of assets in a SCI can be simpler and more fiscally advantageous, making it easier for the assets to be passed on to the heirs.

What are the accounting obligations of an SCI?

An SCI must keep accurate accounts and comply with tax reporting rules.

How do I declare SCI income?

The income of an SCI must be declared according to the tax regime chosen, whether income tax or corporate tax.

What are the advantages of family SCI?

Family SCI makes it possible to manage assets in the family, to protect assets and to optimize taxation.

Why choose an SCI to invest in real estate?

An SCI makes it possible to share risks, to manage assets collectively and to optimize taxation.

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