France's most popular property holding company — a civil real estate company used by families and investors to own, manage, and transfer French property with tax efficiency.
An SCI — Société Civile Immobilière — is a French civil company whose purpose is the ownership, management, and rental of real estate. It is by far the most common legal structure for family property ownership and investment property holding in France. The SCI cannot trade or develop property for commercial profit — it is a civil structure designed specifically to hold property assets. At least two associates (associés) are required — a single person cannot hold 100% of an SCI.
The SCI's main attractions: flexibility in transferring ownership through share (parts sociales) transfers rather than property deeds, reducing or deferring transfer taxes; family succession planning through progressive gifting of shares to children within annual tax-free allowances; joint ownership management avoiding the rigid rules of indivision (undivided co-ownership); and separation of real estate from personal assets for liability purposes.
For tax purposes, an SCI is by default transparent (translucide) — profits and losses pass through to associates and are taxed at their personal income tax rate. Associates can elect corporate tax (IS — Impôt sur les Sociétés) instead, which can advantage retained income but creates significant capital gains consequences on eventual sale. The IS election is irrevocable for 5 years.
Forming an SCI requires: drafting statuts (articles of association) before a notaire or lawyer; registering with the Greffe du Tribunal de Commerce; publishing a notice in a legal journal; and obtaining a SIREN/SIRET number. The process takes 2–6 weeks and costs approximately €500–€2,000 in professional fees. Ongoing obligations include annual accounts, potential tax returns, and maintaining a share register.
For non-resident investors, the SCI can help with succession planning (particularly for non-EU nationals whose estates might otherwise face both French and home-country succession rules) and asset separation. However, the SCI adds administrative complexity and cost. Whether it is the right structure depends heavily on individual circumstances — consult a French notaire and tax lawyer before purchasing through one.
Yes. Non-residents including non-EU nationals can be associés in a French SCI. The company itself is a French legal entity regardless of associate nationality. Non-resident associates are taxed on their share of French property income in France under French-source income rules.
No. SCI shares are estate assets like property itself. However, shares may be valued at a discount to the underlying property value and progressive gifting over time uses annual allowances to reduce the taxable estate. Consult a notaire for estate planning specific to your situation.
An SCI is a civil company for property holding — unsuitable as a main activity for furnished short-term rentals. A SARL de famille (family limited company) is commercial, suitable for furnished rental businesses (LMNP/LMP) and active management. If you intend to run furnished short-term rentals commercially, an SCI may not be the right structure.
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