The SCI is a civil real estate company made up of at least two partners. This legal form is highly appreciated by owners wishing to optimize their real estate investment. It is possible to entrust the management of the property to several people. However, the SCI cannot be created to carry out commercial activities. Before you start, you should know all the advantages of the SCI!
The benefits of SCI
Simplified inheritance transfer
Creating an SCI is a great idea for families! Do you pay the IFI? Know that you can transfer the shares of this property to your children while retaining the management of the property. As a result, you will no longer have to mention this property to calculate your IFI.
In the event of a succession, SCI status is advantageous since it will be possible for the heirs to put an end to joint ownership. Thus, they will be able to dispose of their social share at their convenience!
Sharing of rental charges
creating an SCI is an economic strategy for the partners since they will be able to share the rental charges of the property.
An attractive tax regime
When you set up an SCI, you are subject to income tax (IR) but you can choose to be subject to corporation tax (IS). At IR, the partner is taxed on the profits made throughout the year. The profit is distributed according to the shares of each partner. During a real estate transfer, the IR provides for an abatement on real estate capital gains: consequently you will be partially exempt from tax 22 years after the possession of the property and in its entirety after 30 years.
In addition, in the event of a deficit you can deduct up to 10,700 in rental charges on your annual income. The rest can be charged to future years.
However, if you opt for IS: it is the net result of all charges as well as the depreciation of the property that will be taxed. In addition, your profit will be taxed in brackets at rates of:
- 15% from 0 to 38,120 euros;
- 28% from 38,120 to 500,000 euros;
- 31% for amounts above 500,000 euros since 2019.
It is good to know that the Scellier and Pinel laws make it possible to obtain tax reductions.
The limits of SCI
Indefinite heritage
The liability of the partners is indefinite. Indeed, the partners are required to reimburse the creditors in proportion to the shares they hold. On the other hand, in the event that his shares do not allow him to reduce his debt, he will have to draw on his personal assets.
Unanimous transfer of shares
To transfer its shares in an SCI, it is imperative that all the partners give their agreement: it is a unanimous vote. On the other hand, you can provide for a majority within your statutes.
Meeting in General Assembly
The last obstacle to setting up an SCI lies in the fact that it is compulsory to bring together all the partners each year. The aim is to present the accounts and to participate together in decisions relating to the proper functioning of the company. Finally, these decisions give rise to minutes.
