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Real estate
SCPI: property without the management, and taxation that depends on how you hold them.
Offices, retail, healthcare, logistics, in France and across Europe: you own units in a let property portfolio, run by a management company. What matters: where the SCPI invests, and how you hold it.
Holding SCPIs
Four ways, four tax treatments.
| Holding method | What is taxed | For whom |
|---|---|---|
| Directly | Rents, at the income tax progressive scale, plus 17.2% on the French portion | Additional income, moderate tax bracket |
| On credit | Rents, less loan interest (Article 31 of the French Tax Code) | High earned income, long horizon |
| In bare ownership | Nothing during the split of ownership: no rent, and the units fall outside the bare owner's IFI (Article 968 of the French Tax Code) | High tax bracket, IFI (real estate wealth tax), capital to recover later |
| Within an assurance-vie | Only the gains withdrawn, according to assurance-vie taxation. | Passing on wealth, no need for immediate income |
When the split of ownership ends, the bare owner recovers full ownership of the units with no tax or additional fees.
France or Europe
Where the buildings are located changes what you pay.
They are property income: income tax progressive scale and 17.2% in social charges. Up to €15,000 of property income a year, the micro-foncier regime applies a 30% allowance (Article 32 of the French Tax Code).
Taxed first in the country where the property is located, they are exempt from social charges in France. France takes them into account through the effective rate method or a tax credit, depending on the tax treaty.
Before choosing
What we look at in an SCPI.
Subscription fees range from 0 to 12% depending on the SCPI; management fees are deducted from rental income. These fees are compared over the planned holding period.
Sectors, countries, number of buildings, occupancy rate, remaining lease terms: this is what keeps rental income steady.
Its track record, the SCPIs it manages, how it has come through recent years: all published in the annual reports.
Simulators
Run the numbers with your own figures.
Frequently asked questions
What clients ask us.
Are SCPIs subject to IFI (real estate wealth tax)?
Yes, for the portion of their value that corresponds to real estate (Article 965 of the French Tax Code). Held in bare ownership, they fall outside the bare owner's IFI during the split of ownership (Article 968 of the French Tax Code).
Can you buy SCPIs on credit?
Yes. Loan interest is deductible from taxable rental income (Article 31 of the French Tax Code, CGI), which reduces tax for the duration of the loan. It is often a good way to start when you have high earned income.
How do you declare rents from European SCPIs?
On the property income tax return (form 2044) and on the declaration of income received abroad (form 2047), based on the annual tax statement sent by the management company. The method, effective rate or tax credit, depends on the country.
Direct purchase, credit, bare ownership or assurance-vie: how to choose?
Depending on your tax bracket, your IFI and your need for income. In a 41% bracket, a French rent of €1,000 brings in about €420 net after tax and social charges; bare ownership or assurance-vie then often become more attractive. We run the figures for your case before you choose.
