SCPI

A SCPI (Société civile de placement immobilier) or paper stone is a collective investment. A SCPI is managed by a management company that buys and rents out real estate properties. By purchasing SCPI shares, you become an associate, and therefore an indirect owner of the real estate portfolio. You receive rental income in the form of returns without having to buy or manage a property directly.

When you invest in real estate via a SCPI, you buy shares of a diversified real estate portfolio without managing it, while receiving income (or rent). Your initial investment is relatively limited without management worries. However, SCPI share liquidity is not guaranteed. Conversely, buying a property directly requires a larger initial investment and managing the acquired real estate asset (property management, works, etc.). You control the management and potential resale of the property. The choice depends on your budget, availability, risk profile and objectives.

Directly held SCPIs: Taxation is twofold, applying to rental income received and upon resale of shares. SCPI income is taxed like rental income from directly held property — classified as property income and subject to social charges (CSG, CRDS), progressive income tax, and 17.2% social contributions. Upon resale, potential SCPI capital gains are subject to real estate capital gains tax. SCPIs held through life insurance: Life insurance taxation applies.

You can reduce your tax burden in several ways: Hold SCPIs via life insurance. Invest in European SCPIs where local taxation applies, generally more favorable than France. Purchase SCPI shares in bare ownership so you are not taxed on rental income. Invest in SCPIs on credit with deductible loan interest. Hold SCPI shares long-term for duration-based allowances: 6% per year from year 6 to 21, and income tax exemption after 22 years. Choose a tax-advantaged SCPI under schemes such as Pinel, Malraux, Denormandie or deficit foncier.

Three tax wrappers are available for SCPI investment: The securities account (CTO) offers the widest SCPI choice but no tax or estate advantages. Life insurance provides tax deferral while invested, reduced taxation after 8 years with annual allowances (€4,200 single / €9,200 couple) and a reduced 7.5% rate, plus estate advantages. SCPI entry fees are generally lower and the insurer guarantees share liquidity. The retirement savings plan (PER) allows SCPI investment with PER tax advantages — deductible contributions, deferred income taxation, and IFI exemption while locked.

SCPI fees are of 4 types: Entry or subscription fees when purchasing shares. Management fees throughout the holding period. Possible early withdrawal fees within a defined period. Fees upon resale of held shares.

Yes, SCPI shares are subject to IFI with a few exceptions: SCPIs held in bare ownership (dismemberment) and SCPIs held in a specific PER. The IFI value to declare equals the withdrawal value multiplied by the real estate ratio (percentage of capital invested in real estate). The management company provides this value during tax filing.

The main advantages of SCPIs are: Access to real estate with a limited investment of a few thousand euros, unlike direct property purchase. No property management — no works to plan or tenants to manage. Diversification of real estate assets and risk dilution through portfolio investment.

The main risks of SCPIs are: No guarantee of returns linked to the real estate market, as with most investments. Sometimes limited liquidity of SCPI shares, unlike equities — reselling your shares may take time. Taxation equivalent to property income.

Logistics is a fast-growing sector driven by e-commerce and supply chain. SCPIs invested in logistics offer potentially attractive returns and interesting sectoral diversification.