In summary…
Buying the bare ownership of SCPI units means acquiring them at a significant discount—20% over 5 years, 30% to 35% over 10 years—with the usufruct being transferred to a third party for the duration of the split ownership. During this period, you receive no income: no property tax, no social security contributions, and the units are excluded from your wealth tax (IFI) base. At the end of the term, you regain full ownership without any additional costs or taxes. This is the conversion of heavily taxed income into a tax-free capital gain.
- Discount at purchase, recovered fully and mechanically at the end of the dismantling process
- Zero taxation during the period: No rental income, no social security contributions, shares exempt from wealth tax
- Ideal for those liable for the IFI (French wealth tax). without the need for immediate income
Simulate your bare ownership SCPI
The simulator calculates the full ownership recovered at the end of the term. Your data is neither stored nor transmitted.
SCPI simulator with split ownership
Buy the bare ownership of SCPI units at a discount: zero taxable income, excluding IFI, automatic capital gain.
Results are provided for illustrative and educational purposes only, based on the parameters entered and simplified assumptions (2026 tax year, constant return, excluding inflation). They do not constitute personalized investment advice, tax advice, or an offer to subscribe. Some investments carry a risk of capital loss. Before making any decision, consult an advisor.
Why split of ownership is the patient taxpayer's tax weapon
Temporary splitting of ownership rights is based on a simple idea: separating ownership of the asset (bare ownership) from its income (usufruct). You buy the bare ownership at a discount; a third party—often a legal entity that has an interest in receiving the rent—buys the usufruct for a fixed period. Each party optimizes their tax situation on the portion of the asset that suits them best.
For a high-income taxpayer, the benefit is clear. Direct rental income would be taxed at the marginal tax rate plus 17.2%: it's better not to receive it at all. By purchasing the bare ownership, you voluntarily forgo this income for a few years, and this foregoing is precisely what earns you the discount. You transform a cash flow taxed at over 50% into a future, tax-free capital gain.
The benefits extend beyond mere tax savings. Bare ownership is excluded from the scope of the French wealth tax (IFI), making it one of the few tax-neutral real estate assets for those subject to it. Furthermore, the capital appreciation at maturity is automatic: it depends not on the market, but on the scheduled termination of the usufruct. This trajectory is known in advance.
The 3 levers of bare ownership
The discount is not a rebate, it's a programmed return
Buying bare ownership for €70,000, which will be worth €100,000 in full ownership in 10 years, isn't about getting a 30% discount; it's about securing a mechanical revaluation of the discount, an objective market phenomenon. The capital "recovers" from the initial discount simply through the termination of the usufruct. Over 10 years, this represents a net actuarial return after tax that is difficult to match with a taxed investment.
Total tax invisibility during the split of ownership
No income, therefore no property income tax, no social security contributions, and exclusion from the wealth tax (IFI) base. For a business owner or a self-employed professional taxed under the 41 or 45 % regime and subject to the IFI, this is one of the very few real estate assets that incurs no tax liability each year while simultaneously building capital. Taxation only resumes at maturity—and even then, only on any potential capital gain from full ownership.
The assumed illiquidity and the choice of the underlying asset
The downside is real: you tie up your capital for the entire duration of the split ownership, without any interim income and with the sale of bare ownership being relatively illiquid. Furthermore, the discount doesn't protect against poor underlying assets: if the chosen SCPI (real estate investment trust) depreciates significantly over time, the recovered full ownership may be worth less than expected. The quality of the SCPI and the suitability of the investment period to your time horizon are more important than the size of the discount.
Case study: Marc, 52 years old, manager of an industrial SME in Strasbourg
Marc, taxed at 45% and liable for the French wealth tax (IFI), does not need additional income before his retirement. He invests €70,000 in bare ownership of SCPI units, with a 10-year split ownership period and a 30% discount. Here is the trajectory projected by the simulator:
| Indicator | Bare ownership | Equivalent direct ownership | Gap |
|---|---|---|---|
| Initial investment | ≈ €70,000 | ≈ €100,000 | -€30,000 |
| Full ownership at the end of the term (10 years) | ≈ €100,000 | ≈ €100,000 | — |
| Cumulative taxable income over 10 years | 0 € | ≈ €55,000 | -€55,000 |
| annual IFI on these shares | 0 € | debtor | exempt |
Marc transformed €70,000 into €100,000 of full ownership in ten years, without declaring a single euro of rental income or paying any wealth tax on this asset. At 45 % + 17.2 %, the approximately €55,000 in rent he would have received directly would have cost him over €34,000 in tax: he exchanged it for an immediate discount and an untaxed capital gain.
This arrangement only makes sense because Marc doesn't need this income now and has a clear time horizon (his retirement). For an investor seeking immediate income, a fully owned SCPI (real estate investment trust) or a assurance-vie policy would be more suitable. It all depends on the objective.
The right division of assets is based on your time horizon, not on the depreciation.
This simulator projects the automatic increase in your capital. The true value of advice lies elsewhere: choosing a solid SCPI (real estate investment trust) as the underlying asset, aligning the duration of the usufruct agreement with your actual time horizon (retirement, inheritance), and coordinating the transaction with your wealth tax (IFI) and the rest of your assets. An attractive discount on a poor-quality SCPI is still a bad deal.
Balmont Conseil is an objective wealth management firm, a member of ANACOFI, with no capital ties to any asset management company. We select the right SCPI/investment timeframe combination across the entire market, solely to serve your wealth management strategy. Let's make an appointment to check if bare ownership matches your time horizon and tax situation.
Frequently Asked Questions
How exactly does temporary split of ownership work?
You purchase the bare ownership of the shares at a discount; another investor, often a legal entity, buys the usufruct and receives the rental income for a fixed period (5, 10, sometimes 15 years). At the end of this period, the usufruct automatically terminates, and you regain full ownership, without any transfer fees or taxes. The initial discount corresponds exactly to the value of the income you are foregoing.
What discount can I expect?
It depends on the duration of the split ownership and the chosen allocation key: around 20 % over 5 years, 30 to 35 % over 10 years, and even more over longer periods. The longer the period, the greater the discount, but the more of your capital remains tied up. The period should therefore be aligned with your actual investment horizon, not solely with the goal of maximizing the discount.
Is bare ownership truly exempt from the French wealth tax (IFI)?
Yes. During the period of divided ownership, it is the usufructuary who includes the value of the shares in their IFI (French wealth tax) base; the bare owner declares nothing. It is one of the few real estate assets that allows one to build capital while remaining neutral for IFI purposes, making it a preferred tool for taxpayers subject to the tax.
What happens if I need my money before the deadline?
This is the main limitation: bare ownership is illiquid and generates no interim income. Early resale is possible, but at a negotiated price, which may be disappointing. This strategy therefore requires tying up funds you don't need for the entire duration of the split ownership. It should never involve using your emergency savings.
How does a consulting firm change the game in this arrangement?
The splitting of SCPI shares is often sold solely on the promise of a discount. Balmont Conseil, a member firm of ANACOFI, first examines the soundness of the underlying assets and the suitability of the investment timeframe to your horizon, without being tied to any particular management company. We do not receive any commissions that would influence our favor towards specific funds: the selection is made solely based on your best interests.
Results are provided for illustrative and educational purposes only, based on the parameters entered and simplified assumptions (2026 tax year, constant return, excluding inflation). They do not constitute personalized investment advice, tax advice, or an offer to subscribe. Some investments carry a risk of capital loss. Before making any decision, consult an advisor.
