French real estate investment company (SCI): how the non-resident partner is taxed in France

It all depends on the tax regime of the SCI (Société Civile Immobilière - French real estate company). In an SCI subject to income tax, each partner is taxed personally on their share of the profits. In an SCI subject to corporate tax, the company pays the tax, and the partner is taxed on the dividends it distributes. For a partner domiciled outside France, a dividend from French sources is subject to a withholding tax of 12.80% (rate in effect as of January 1, 2026), subject to tax treaties.

This page is incomplete, and it acknowledges this. It reiterates the information provided on the official pages for SCIs (French real estate investment companies) on the one hand, and for non-residents on the other. It does not address the calculation of a non-resident partner's share in an SCI subject to income tax, nor the sale of a property by such an SCI. These two points are noted below as limitations, without providing any invented answers.

Two regimes, two logics

The choice of tax regime is addressed on the page "SCI under personal income tax or corporate income tax: how to choose". Here, only the changes for a partner residing abroad are relevant.

SCI taxed under the personal income tax regime: the partner declares their share

The tax authorities state that, for a French SCI (Société Civile Immobilière) subject to income tax, the partner is liable for tax on their share of the profits. The company files form 2072 electronically each year, no later than the second business day following May 1st, for rental income from the previous year. Form 2072-S is used when the partners are individuals (or are subject to the micro-BIC, micro-BA, or BNC tax regimes) and none of the scenarios described in form 2072-C apply. Form 2072-C is used, in particular, when a partner is subject to the actual BIC, agricultural, or corporate income tax regimes.

A partner who only holds shares in a French SCI (Société Civile Immobilière) declares their share as rental income on form 2042. The micro-rental regime is available under certain conditions, including a maximum gross income of €15,000. In other cases, they complete form 2044.

For non-residents, the tax authorities establish a second principle: income from French sources remains taxable in France after departure, subject to tax treaties. This income is declared on form 2042 and, depending on the circumstances, on appendix 2042-NR, and the Non-Resident Tax Office (SIPNR) handles the tax return. The interaction of these two principles for a partner in a French real estate investment company (SCI) is not addressed here; it should be verified in your file with the SIPNR before filing any tax return.

What the administration indicates regarding the rental income of a non-resident

Here is what the "non-resident" pages publish for the rental of unfurnished properties in France.

The threshold of €29,579 concerns income received in 2025: the threshold applicable to 2026 income should be checked with the administration.

Social charges

The "Property Income" page on the impots.gouv.fr website, updated on February 26, 2026, indicates social security contributions of 17.2% (%) for unfurnished rentals and 18.6% (%) for furnished rentals for non-residents (the latter rate being presented as "new rate applicable from income received in 2025"). These rates are cited as they appear on this page, for these two types of income only. The rate applicable to income received in 2026 should be verified with the tax authorities.

Individuals affiliated with a mandatory social security scheme in the European Economic Area or Switzerland are exempt from CSG and CRDS contributions, but remain subject to the 7.5% solidarity levy (%). To benefit from this exemption, boxes 8SH or 8SI of form 2042 C must be checked, and affiliation must be effective by December 31st of the year in question.

Real estate company subject to corporate income tax: dividends and withholding tax

A French real estate investment company (SCI) subject to corporate income tax is liable for this tax. The French tax authority (BOFiP) indicates that income distributed by such companies is subject to withholding tax when it benefits individuals whose tax residence is outside France (Article 119 bis, 2 of the French General Tax Code).

For a non-resident individual, the tax authorities apply a rate of 12.80 % as of January 1, 2026, increased to 75 % for income paid in a non-cooperative state or territory. Tax treaties may provide for more favorable treatment. Investment income of a non-resident is not subject to social security contributions. Dividends are reported on line 2EE if a tax return is filed for other French-source income. The complete procedure is explained on the page "Dividends Paid to a Non-Resident".

Sale of property or shares: the published rules

When a non-resident sells real estate in France, the tax authorities levy a tax of 19% (%), with a reduction based on the length of ownership and an exemption after 22 years. Social security contributions amount to 17.2% (%) outside the EEA and Switzerland. For those affiliated with an EEA or Swiss social security scheme, the solidarity levy is 7.5% (%). The notary pays the tax on the sale (form 2048-IMM-SD; 2048-M-SD for the sale of shares in a predominantly real estate company).

In principle, a sale by a non-resident requires a tax representative. Exemptions apply to sellers domiciled in the European Union, Iceland, or Norway, those whose sale price is €150,000 or less per seller, and sales exempt from capital gains tax based on the holding period.

For a French SCI (Société Civile Immobilière) taxed under the personal income tax regime that sells a building, another page specifies that the capital gain is calculated at the company level and taxed in the name of each partner present at the sale, in proportion to their shares, under the individual tax regime. This page does not address non-resident partners. The combination of the two rules (tax rates, social security contributions, forms) for a non-resident partner is not covered here: this must be verified before the sale, with the notary and the tax authorities.

The IFI on SCI shares

A non-resident is subject to the French wealth tax (IFI) on their real estate assets and rights located in France, including the portion of the value of their company shares representing these assets, exceeding €1,300,000 of net taxable wealth as of January 1st, subject to applicable tax treaties. Details can be found on the pages "IFI for non-residents" and "IFI: shares in companies holding real estate.".

SCI and non-resident partner: numerical example (fictitious profile)

Situation. Hélène, a fictitious person, lives outside of France. She owns 50 shares of a French real estate company (SCI) subject to corporate income tax, which owns rented premises in France. The shareholders' meeting decides to distribute a total of €60,000.

Hypotheses. Hélène is the beneficial owner of the dividend. The country of payment is not a non-cooperative state or territory. No treaty tax rate is invoked. The calculation ignores the tax of her country of residence.

Issue. How much does he have left before taxes in his country of residence?

Strategy. Apply the rate of 12.80 % to the share that is due to him, i.e. 50 % of 60,000 €, therefore 30,000 €.

Result. The deduction is €30,000 × 12.8 % = €3,840. The net amount going to Hélène is €26,160. If the same €30,000 were paid in a non-cooperative state or territory, the rate would be 75%, subject to the exceptions provided for by law.

The profile is fictitious and its amounts are hypothetical. It does not predict your situation.

SCI and non-resident partner: what changes depending on your situation

• The SCI's tax regime, IR or IS, and the date of any option.
• Your country of residence and the tax treaty that links it to France.
• Your affiliation to a social security scheme in the EEA or Switzerland.
• The type of rental: unfurnished or furnished.
• The fact that you have other income from French sources or an average rate more favorable than the minimum rate.
• Your share in the SCI and the value of the real estate held in France.

The rule depends on your situation. No results are guaranteed.