To organize or manage the transfer of a family inheritance to descendants, more and more people are turning to the SCI or real estate civil company. The latter is also a good choice for acquiring a primary residence.
If the idea appeals to you, but you don’t have enough information on the subject, we help you see more clearly through this article. It is important to know its advantages and disadvantages before making a decision. To start, it is appropriate to offer you a definition of the SCI.
📋 The essentials at a glance: Personally, I think the SCI is an exceptional wealth management tool, especially for inheritance, but it should not be chosen for immediate tax reasons. Did you know that 15% of inheritance disputes could be avoided thanks to this structure? I recommend this option to families wishing to protect the surviving spouse or organize the sharing between children fairly.
What is an SCI and how can it be used to buy a house?
Many individuals consult a real estate advisor not only to inquire about a refused mortgage loan, but also about an SCI.
The latter is primarily a company. It requires at least 2 legal or natural persons to create it. Like any company, you must determine its name, capital, registered office, duration, and operating procedures.
Its main objective relates to the management and ownership of real estate assets. It differs from commercial companies due to its civil purpose. It does not follow any commercial code.
📍 My experience: In 2024, I assisted friends who were buying as an unmarried couple. They opted for the SCI to avoid the deadlocks of joint ownership in case of separation. By setting clear rules in the statutes from the start, they secured their respective contributions for a creation cost of only 600 euros. The lesson is simple: the SCI offers contractual flexibility that the law does not allow in one’s own name.
To acquire a property, many types of SCI can be used. Among the most well-known, family SCI as well as professional SCI attract many people.
The partners of the first option are strictly family members. A couple can, for example, acquire a primary residence in SCI.
As for the professional SCI, it is mainly used to acquire a building or housing for professional use.
In practice, the manager of an organization buys premises through an SCI so that the property is not classified as part of the company’s assets. It must therefore pay rent to the SCI.
What are the advantages of buying a house in an SCI to live in it?
| Criterion | Individual Name / Undivided Ownership | SCI (Real Estate Civil Company) |
|---|---|---|
| Management | Unanimity often required | Manager appointed (simple majority) |
| Transfer | Standard transfer duties | Facilitated division of shares |
| Taxation | Rental income | Choice possible between IR or IS |
| Maintenance fees | None | Accounting and annual general meeting |
If you plan to create an SCI for the purchase of your primary residence, know that this confers several tax advantages.
First, you benefit from the exemption of transfer duties dedicated to the donation of shares.
That’s not all, you benefit from the tax exemption concerning the capital gain of the SCI. This also entitles you to a tax reduction for a property deficit.
Whether the couple is cohabiting, in a civil partnership, or married, know that it also facilitates the transfer of the property to the children. With the SCI, it becomes possible to make donations of shares, thanks to the exemption of transfer costs that can go up to 100,000 euros.
🌍 Did you know?
In an SCI, you can give shares socially to your children every 15 years with an allowance of 100,000 euros per parent. This allows the transfer of an entire building without paying any inheritance tax.
What are the disadvantages of buying a house in an SCI to live in?
As mentioned above, acquiring a residence through an SCI offers many advantages. However, it is still important to know its disadvantages. Among the most cited by users, administrative burden can often slow down their project.
Indeed, like any company, its creation involves complying with several formalities such as company registration, drafting the statutes, and accounting obligations.
Its operation follows precise rules even though it is created solely to obtain a primary residence. For example, general meetings must be organized, taxes must be paid, and more.
✅ Advantages
- Protection against undivided ownership
- Facilitated transfer of assets
- Management delegated to a manager
🔻 Limitations
- Creation and management costs
- Administrative obligations (AG)
How does buying a house in an SCI to live in work?
- Creation of the SCI: If you plan to buy a primary residence through an SCI, you must first create this company properly.
- Number of partners required: To do this, at least two people must associate. The formation of the SCI also requires drafting the statutes.
- Content of the statutes: These must specify the names of all partners, the distribution of their shares, the address of the registered office, the appointment of the manager, the operating procedures, and much more.
- Company registration: Once this is done, the next step is to complete the form to register the company with the RCS. The articles of association must also be filed with the Business Formalities Center.
- Duration of the SCI: The SCI is established for a maximum duration of 99 years. Each partner contributes their share and also receives a share relative to their contribution.
How to choose the partners of the SCI for the purchase of the house?
As with any company, it is imperative to associate with trustworthy individuals. You cannot form an organization or any agency with a person who is subject to doubt.
With the family SCI, it requires that the partners must only be from the same family. They can become owners of a house for a non-commercial purpose.
It remains possible that one of the partners plans to leave the SCI. In this situation, they are obliged to sell their shares. This is done through the transfer of shares. Unlike other companies, the SCI greatly facilitates the procedures. A notarial deed is not required.
💡 Practical advice
Never neglect the drafting of the articles of association. Provide for a strict approval clause to prevent a partner from selling their shares to a stranger without the agreement of the other family members.
How to manage renting the house if you decide to move or no longer live there?
After having benefited from your main residence, it is entirely possible to be a tenant of a property of your SCI. However, this has consequences.
By renting a dwelling from the SCI as your main residence, you can no longer enjoy the deduction on inheritance rights, the 30% allowance on real estate wealth tax, nor the right of occupation as a surviving spouse.
⚠️ Common misconception
It is often thought that the free occupation of a dwelling by partners in an SCI subject to corporate tax is an advantage. Beware: fiscally, this can be considered a taxable benefit in kind, which can lead to a severe tax adjustment.
Frequently Asked Questions
Buying a house through an SCI (Société Civile Immobilière) makes it easier to manage the property, especially if several people are involved. The SCI offers some flexibility to organize the distribution of shares, anticipate the transfer of assets, and simplify tax management. It can also reduce family conflicts thanks to clear statutes defining the rights and obligations of each party.
Creating and managing an SCI involves more complex administrative and accounting procedures than a direct purchase. The setup costs, annual accounting obligations, and the liability of the partners can make this structure less attractive for an individual alone. Moreover, reselling the property can be more complicated because it depends on the transfer of the SCI’s shares and not on the direct sale of the property.
Yes, but it is mainly suitable for situations where the property is owned by several people or when the transfer is anticipated. For an individual simply wishing to live in their house, the advantages may be limited compared to the administrative and tax constraints. It is therefore essential to carefully consider your objectives and possibly consult an expert before creating the SCI.
