Where to invest with SCI?

Real

CentraledesscpiJuly 22

Civil real estate companies (SCI) allow at least two investors to create and manage properties. This is an interesting alternative to buying a joint property. This results in flexibility to take advantage of preferential tax treatment, especially in matters of succession. What types of real estate investments can be part of SCI? Where to put in SCI? Let’s find out without further ado

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How to create your own SKI?

You must first draw up the articles of association, possibly with the help of a notary. In particular, the name of the trustee, the address of the registered office and the capital of the SCI must be provided. The notice of the creation of the SCI must also be published in the Legal Announcements Journal. As with any company, you must also register your SCI with the Commercial Registry and Companies Registry under the jurisdiction of your commercial court.

What type of property can you include in SCI?

  • Property in direct ownership

It can be used property (to live there or spend your holidays there), but especially rental property.

This possibility is little known, but it is very practical. Setting up an SCI to float its SCPI shares essentially allows you to benefit from very attractive taxation.

How called Lionel Benhamuone of the founding partners Central SCPI (www.centraledesscpi.com), the first French digital savings network:

Buying SCPI high performance stocks through SCI allows you to invest in tertiary and co-ed real estate with a low entry fee while enjoying very attractive taxation. To help our clients build their SCI by integrating the best SCPIs on the market, just contact us at 01.44.56.00.23. »

What is the taxation of SCI?

  • IRS subject to personal income tax (IRPP)

These are the most common SKIs. These SCIs are transparent. This means that their partners are taxed directly on the profits made by their SCI. Thus, each partner will declare their share of the profits in the IRPP.

In the event of a deficit, it can be credited against the partners’ total income up to 10,700 euros. The surplus is deducted from property income for the next ten years.

  • SCIs are subject to corporation tax (IS)

SCIs subject to IS are not transparent. Therefore, it is necessary to first calculate the taxable income earned subject to the rules of industrial and commercial profit (BIC). It is SCI that is responsible for the IP, not the partners. On the other hand, if SCI decides to distribute dividends, the latter will be taxed for partners. Thus, there will be double taxation: SCI and partners.

Placing SCI money in SCPI can be extremely interesting.

It should also be remembered that a 10 percent rebate applies to real estate tax (IFI) for property owned through SCI.

How to transfer shares of your SCI?

The transfer of SCI shares is done by donation. Parents may agree to donate their SCI shares to their children. Thus, each child can receive up to 100,000 euros from each parent without paying gift tax. Above this amount, amounts will be taxed at a progressive rate (between 5% and 45%). The allowance is renewed every 15 years.

We see all the interest in creating SCI here, as it is difficult to make consistent installment donations for directly owned properties. In SCI, capital is divided into shares, which parents can gradually transfer to their children, SCI partners.

What’s more, SCI promotions can carry a 15% discount compared to the price of the same item directly. Indeed, it is more difficult to sell SCI shares than real estate. Thus, this discount reduces the base for the gift tax.

What SCPI performance to include in SCI?

As with a classic SCPI portfolio, you must mix at least three SCPIs, or even more, depending on the size of said portfolio. This strategy, invented by La Centrale des SCPI (www.centraledesscpi.com), allows you to further pool your real estate assets and therefore further limit your risks.

  • Priority should be given to European SCPI and thematic SCPI.

European SCPIs are among the best SCPIs, i.e. those that generate a net return of around 6% per annum. They enjoy significant tax benefits as their dividends are not subject to 17.2% Social Security contributions. Their geographic diversity (the euro area and the rest of the continent) is also indicative of different property cycles.

As far as thematic SCPIs, mainly logistics and healthcare SCPIs, it is about investing your money in sustainable and floating assets that allow you to invest your money only in buildings that would be impossible to acquire.

Where to go to find the best SCPIs for your SCI?

  • He should contact the SCPI specialists

In addition to their ability to implement all of the asset engineering needed to create an SCI, SCPI professionals such as La Centrale des SCPI only do that work. They distribute all SCPIs at the same time without additional facts and provide free services to their customers.

  • We must turn to Central SCPI

How does it cause Thibault Le Coaymanager inside Central SCPI : “ Our deep knowledge of SCPI speaks for us. We know all the SCPIs on the market and therefore we can offer our customers the best of them. We can also find the best loan for investors who want to increase their wealth faster. »

Investing in SCPI through SCI is not common but has many benefits. Thus, thanks to its SCI, it is possible to transfer your shares to SCPI in the best possible conditions.

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 recommended that you seek the advice of SCPI experts, such as Central SCPI (www.centraledesscpi.com / 01.44.56.00.23), the first SCPI comparator on the market.

Investing in high-performing SCPIs, whether directly or through SCIs, increases your purchasing power, which is not the case with life insurance contracts in euro funds. All the more reason to invest your money in high performance SCPIs, which are currently the best investments.

Warning

An investment in SCPI is not guaranteed either in terms of dividends received or in terms of capital preservation. SCPIs depend on fluctuations in real estate markets. Before making a decision to buy SCPI stock, seek professional advice to ensure that this investment is in line with your asset profile. Finally, as with any real estate investment, consider the fact that SCPIs are long term investments with a minimum holding period of eight years.



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