French Riviera Realty assists clients with setting up a French civil property company for the acquisition and ownership of real estate. We help determine the appropriate structure, prepare the required documentation and coordinate with lawyers, notaries and other professionals involved in the transaction.
What Is an SCI?
An SCI (Société Civile Immobilière) is a French civil property company used to own and manage real estate. This structure is commonly used by members of the same family or by several co-owners when a property is acquired through a company rather than directly by an individual.
An SCI is not a universal solution. The choice between purchasing property personally or through a company depends on factors such as the family structure, source of financing, plans for inheritance or transfer of shares, and the client’s individual tax situation.
When an SCI May Be Appropriate
- Joint ownership of property by several family members or partners;
- Allocation of ownership interests between shareholders and the subsequent transfer of shares;
- Organisation of family ownership and management of real estate;
- Structuring property ownership with inheritance and estate-planning objectives in mind;
- Purchasing property through a company where this structure is appropriate for the specific transaction and the client’s circumstances.
Tax and inheritance implications must always be assessed individually. Before establishing an SCI, we recommend reviewing the proposed structure with a French notary, lawyer or tax adviser.
French Property Wealth Tax — IFI
IFI (Impôt sur la Fortune Immobilière) is the French property wealth tax applicable to the net taxable value of real estate assets.
IFI liability arises when the net taxable value of the tax household’s real estate assets exceeds €1.3 million as of 1 January of the relevant tax year.
For French tax residents, taxable real estate located both in France and abroad is generally taken into account, subject to the applicable statutory rules. For non-residents, IFI generally applies primarily to real estate assets located in France.
2026 IFI Tax Rates
| Net Taxable Value | Tax Rate |
|---|---|
| Up to €800,000 | 0% |
| €800,000 to €1,300,000 | 0.50% |
| €1,300,000 to €2,570,000 | 0.70% |
| €2,570,000 to €5,000,000 | 1% |
| €5,000,000 to €10,000,000 | 1.25% |
| Over €10,000,000 | 1.50% |
Important: The threshold for IFI liability is €1.3 million. However, once this threshold is exceeded, the tax is calculated according to the progressive scale starting with the portion of the taxable value exceeding €800,000.
For net taxable assets between €1.3 million and €1.4 million, a tax reduction mechanism (décote) applies.
SCI and IFI
For IFI purposes, the value of shares held in an SCI may be taken into account to the extent that their value corresponds to the company’s taxable real estate assets.
How an SCI Is Set Up
1. Determining the Structure
We establish the composition of the shareholders, allocation of shares, appointment of the company manager (gérant) and the principal objectives of the structure.
2. Preparing the Documents
We prepare the required personal and corporate documentation and arrange the necessary translations.
3. Drafting the Articles of Association and Registration
A lawyer prepares the articles of association and registration documents, after which the company is formally registered in France.
4. Purchasing the Property
Once the SCI has been registered, the property can be acquired by the company. The notary completes the transaction in accordance with the chosen ownership structure.
Main Information Required for Registration
- Company name;
- Details of the company manager;
- List of shareholders and allocation of shares;
- Addresses and principal personal details of the shareholders;
- Occupations of the shareholders;
- Marital status of the shareholders;
- Information regarding the shareholders’ marriages, matrimonial agreements or divorces.
Documents Required from Shareholders
- Passport;
- Birth certificate, marriage certificate, matrimonial agreement and/or divorce certificate, as applicable.
Foreign documents must be translated into French by a sworn translator (traducteur assermenté).
Assistance After Registration
Once the SCI has been established, we can help coordinate its ongoing administration, including communication with accountants, lawyers and tax advisers, preparation of corporate documents and declarations, as well as matters relating to the property and its ongoing management.
The extent of the SCI’s accounting and tax obligations depends on its activities, tax regime, whether the property is rented out and other relevant circumstances. Reporting requirements must therefore be determined on an individual basis.
French Riviera Realty Assistance
- Assistance in selecting an appropriate property ownership structure;
- Coordination with lawyers, notaries and tax advisers;
- Translation of documents into French by a sworn translator;
- Preparation of documentation required to establish an SCI;
- Assistance with the SCI registration process through to the property transaction;
- Coordination of the property purchase through the company;
- Ongoing administrative assistance and property management.
Our objective is to make the ownership structure clear and to coordinate the entire process, from preparing and establishing the SCI to purchasing and subsequently managing the property in France.
Please note: The information provided above is for general guidance only and does not constitute individual legal or tax advice. Tax rules, documentary requirements and administrative practices may change.
