- Monday, July 18, 2022 – 11:19
Civil real estate companies (SCIs) allow at least two investors to create and manage real estate assets. This is an interesting alternative to buying property in joint ownership. This provides flexibility, which makes it possible to take advantage of favorable taxation, in particular in cases of inheritance. What types of real estate investments can be part of SCI? Where to place in SCI? Let’s find out without further ado
How to create your SCI?
First, it is necessary to draw up the charter, possibly with the help of a notary. In particular, it is necessary to specify the name of the manager, the address of the legal address and the capital of the SZI. The notification of the creation of the DZI must also be published in the journal of legal announcements. Like any company, you must also register your SCI in the Commercial Register and the Companies Register under the jurisdiction of your commercial court.
What type of property can you include in your SCI?
- Direct ownership of real estate
It can be used real estate (for living or recreation), but especially rental real estate.
This possibility is little known, but very practical. Creating an SCI to house your effective SCPI shares essentially allows you to benefit from very attractive taxation.
As summoned Lionel Benamuone of the founding partners Central SKPI (www.centraledesscpi.com), the first French digital savings network:
” Buying SCPI performance shares through SCI allows you to invest in tertiary and shared real estate with a low entry ticket, taking advantage of very attractive taxation. To help our customers build their SCI by integrating the best SCPIs on the market, simply contact us at 01.44.56.00.23. »
What is SCI taxation?
- SCIs are subject to personal income tax (IRPP)
These are the most common TCMs. These SCIs are transparent. This means that their partners are taxed directly on the profits made by their SCIs. Thus, each partner declares his share of the profit to the IRPP.
In case of a deficit, it can be credited to the total income of the partners within the limit of 10,700 euros. The surplus is deducted from the income from the property for the next ten years.
- SCIs are subject to corporation tax (IS)
SCIs subject to IS are opaque. Therefore, it is first necessary to calculate the received taxable profit taking into account the rules of industrial and commercial profit (BIC). IS is the responsibility of SCI, not the partners. On the other hand, if the SCI decides to distribute dividends, the latter will be taxable to the partners. Therefore, there will be double taxation: SCI and partners.
Placing SCI money in SCPI can be extremely interesting.
It should also be noted that a 10% discount applies to the Immovable Property Tax (IFI) for property held through an SCI.
How to transfer shares of your SCI?
SCI shares are transferred by donation. Parents can consent to the donation of their SCI shares to their children. Thus, each child can receive up to €100,000 from each parent without paying gift tax. Amounts above this amount will be taxed at a progressive rate (from 5% to 45%). The aid is renewed every 15 years.
We see here the whole interest of creating an SCI, since it is difficult to make successive donations in installments for immovable property that is directly located. In SCI, capital is divided into shares, which parents can gradually transfer to their children, SCI partners.
Better yet, SCI stock can be offered at a 15% discount compared to the cost of the same item directly. Indeed, SCI shares are more difficult to sell than real estate. This deduction therefore reduces the gift tax base.
What SCPI Performance Indicators to Include in Your SCI?
As with a classic SCPI portfolio, you should mix at least three SCPIs or even more depending on the size of said portfolio. This strategy, developed by La Centrale des SCPI (www.centraledesscpi.com), makes it possible to further consolidate assets in real estate and, as a result, further limit risks.
- Priority should be given to European SCPIs and thematic SCPIs
European SCPIs are among the best SCPIs, i.e. those that generate around 6% net returns per annum. They enjoy significant tax benefits as their dividends are exempt from social security contributions at a rate of 17.2%. Their geographic diversity (euro area and the rest of the continent) also argues for different real estate cycles.
As for the thematic SCPIs, essentially SCPI for logistics and SCPI for healthcare, it’s a matter of investing your money in fixed and floating assets that allow you to invest your money only in buildings that would otherwise be impossible to purchase.
Where do you go to find the best SCPIs for your SCI?
- He should contact SCPI specialists
In addition to their ability to implement all the asset engineering required to create an SCI, SCPI specialists, like La Centrale des SCPI, do just that work. They distribute all SCPIs at once without additional facts and provide free service to their customers.
- We must turn to Central SKPI
As it causes Thibaut Le Couillemanager within Central SKPI : ” Our deep knowledge of SCPI supports us. We know all the SCPIs on the market and therefore can choose the best ones for our customers. We can also find the best loan for investors who want to grow their capital faster. »
Investing in SCPI through SCI is not common but has many advantages. Thanks to its SCI, it is therefore possible to transfer your SCPI shares on the best terms.
In addition to investing your money in SCPI through SCI, you should also take care to find the SCPI with the best performance. Therefore, it is advisable to seek advice from SCPI specialists, such as Central SKPI (www.centraledesscpi.com / 01.44.56.00.23), the first SCPI comparator on the market.
Investing in SCPI performance, either directly or through SCI, increases your purchasing power, which is not the case for life insurance contracts in Eurofunds. Another reason to invest your money in performing SCPIs, which are the best current investments.
Investing in SCPI is not guaranteed both in terms of dividends received and capital preservation. SCPIs are subject to fluctuations in real estate markets. Before making any decision to purchase SCPI shares, seek professional advice to ensure that this investment fits your asset profile. Finally, as with any real estate investment, consider the fact that SCPI is a long-term investment with a minimum holding period of no less than eight years.