Société Immobilien Immobilien (SCI) is a good model for purchasing and investing in property in France, provided you know your rights and obligations and weigh the pros and cons.
The creation of a real estate company (SCI) is relatively easy. Drafting of statutes, publication of a legal notice, registration at the registry, most of the necessary steps can now be done online .
The partners undertake to organise an annual general meeting , the minutes of which must be archived, and to keep rigorous accounts. Knowing that the responsibility of each of them remains proportional to his investment.
The advantages of a SCI
This montage is as idéal to buy several or more easily transmit a property in France to your children. Whether the goal is to house one of the family members or to achieve together an investment in rental real estate.
The SCI does not require a minimum initial investment and its legal framework is flexible. It benefits from each partner’s ability to raise capital, which makes it easier to obtain a bank loan. It also allows the sharing of charges.
The constraints of SCI
The partners have shares but are not directly owners. They must comply with the majority for each decision. This can take time, especially in case of disagreement.
The release of the SCI is a delicate moment. If it is a sale, the amount goes to the company and not directly to the partners. The manager allocates the sum according to the shares of each.
In the name of the same logic, in case of succession, the surviving spouse, if he is a resident, does not have the temporary right of accommodation.
Finally, if only one of the partners sells their shares, they are subject to registration fees and, where applicable, capital gains tax.