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The property society (SCI)

By SCI (Société Civile Immobilière), what is generally understood is the civil society for property, also sometimes named « the property society managing inherited buildings. »

The principal objective of the society is the management and rental of buildings and supporting  support the sale and construction of property.

The society is mainly involved with the gathering of funds, usually through loans, to acquire property directly or  to fund the construction of property for rental.
The  SCI is useful for holding properties and can be used to facilitate property handovers.



- The society is a good option to avoid hold ups when a property has a number of owners as the SCI is able to able to make decisions when problems arise through property inheritance.

- The society is helpful with tax issues as instead of taking the rough value of a property, the debts of a property are deducted to give a net credit from which the tax will be calculated.

- The society can aid property  sales where instead of a single payment being paid, donations or social security support are available.
If there is enough time for this process tax allowances can be made according to French law when a will is made.
Moreover the society’s legislation allows donators with  little capital to allow the society to look after their estate.


Dis advantages

- It is important to note that associates of the SCI are indefinitely responsible for debts of the member’s own properties.
In theory this is not a sole responsibility.
On many occasions the creditors will insist that the most financially secure society member must pay the debt. It is then up to him/her to take this up with the other members

In allowing for all possible tax consequences, SCI members must be prepared for certain obligations: legal, financial and tax (Annual General meeting), which could have a lot of cost implications.

- Before joining the SCI  investigate its exact operations with specialist advice if available. The SCI is very useful if its constitution, i.e. knowing how and why it operates - is understood properly.

Also ensure that before forming an SCI, that the conditions to dissolve an SCI in the future, are clearly stated and understood.

Be wary of the apparent legal simplicity the society appears to be formed by.


Tax system

   Fiscally: a large majority of the SCI do not choose to be taxed through the society and therefore pay income tax.

We will thus refer to the category of a private individual SCI member (see below).

   These members are known as “fiscally transparent”, i.e. they are not taxed through the society, but in  the personal name of each associate based on how much profit he/she has made (article 8 of the CGI)






            Self employed

            Micro Company  or réel simplifié option

Land/property incomes (art 28 to 31 of the CGI)

Deductible deficit of an annual overall income up to 10 700 Euros or 15 300 Euros (if the operation is BORLOO or ROBIEN).
Surplus deficit reported on land /property revenue for the following 10 years .

   Profits of those under individual status are assessed through income tax under the land/property tax categories.




  • Assessed on credit and debt (secured rent /ongoing expenses).
  • Depreciation in value of property  (apart from building plots), over a certain time period
  • Paying off renovation costs.
  • Notaire’s fees on a sale.
  • DE on deductible purchases (or a returnable cost option).
  • Professional taxes to be paid
  • Social security deductions (income assessed)
  • Result determined by receipts/expenditure (rental/expenses).
  • basic depreciation as  % of the rents collected withdrawn as from on January 1,2006 except special systems for habitation premises.
  • Improvement of  non-deductible professional premises.
  • Expenses of notaries on deductible loans, but not on purchase.
  • DE on non-deductible purchase..
  • No professional taxes.
  • No social deductions apart from  CSG/CRDS.

NB :Assessment for an associate evaluated as an individual must include in addition income tax and 11% social security deductions (CSG, CRDS) deductions made by an external body (in general October 15).


All of the descriptive elements are to give an indication and have no contractual value.
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