Tax benefits of a property investment company (Family SCI in French).

For many families, real estate investment, particularly in the luxury sector, represents a significant portion of their assets. In Bordeaux, luxury real estate is a dynamic sector, and managing these assets therefore represents a major challenge. Beyond acquisition and enjoyment, tax and inheritance optimisation is a legitimate concern for any owner. It is in this context that the family Société Civile Immobilière (SCI) can be a relevant legal and tax instrument.

Often perceived as a complex structure, the SCI is in fact an effective tool for wealth transfer, asset protection and tax reduction. Whether you are considering acquiring a sumptuous stone property in the heart of the Bordeaux Triangle, a prestigious vineyard in Saint-Émilion or an exceptional villa overlooking the Arcachon basin, it is important to understand the principles and benefits of an SCI in order to secure and enhance the value of your investment.

This article will guide you through the many facets of the family SCI, highlighting its specific advantages for luxury real estate in Bordeaux. We will explore how this instrument can simplify the management of your real estate assets, optimise their transfer and offer you significant tax advantages, both in terms of inheritance tax and property wealth tax.

What is a family SCI and how does it help optimise property management ? 

A family SCI is a flexible legal structure that allows several people (members of the same family) to jointly own and manage one or more properties. Its strength lies in its ability to separate ownership of the property from the management of shares, thus offering unique opportunities, particularly for inheritance purposes.

Mechanism for indirect ownership of real estate
Unlike direct acquisition, an SCI allows real estate to be owned not personally, but through shares. Each partner owns a percentage of the SCI's capital, and it is the SCI itself that owns the property. This mechanism greatly streamlines management and transfer.

For example, if you own an exceptional property in Pyla-sur-Mer through an SCI, your heirs will receive shares rather than an undivided fraction of the villa, thus avoiding the complications of joint ownership. One of the major advantages is the separation between bare ownership (held by the SCI) and usufruct (the right to occupy the property and receive income from it). This separation allows parents to retain the usufruct of a property while transferring bare ownership of the shares to their children.

Inheritance advantages specific to the Bordeaux real estate market :

An SCI is a powerful tool for planning your inheritance. By gradually transferring your shares in the SCI during your lifetime through gifts, you can significantly reduce the amount of inheritance tax payable. Tax allowances are reset every 15 years (e.g. £100,000 per child).

Take the example of a sumptuous wine château in Saint-Émilion: if this château is owned through an SCI, the transfer of shares benefits from a discount (approximately 10 to 20%) allowed by the tax authorities, thereby reducing the taxable base and therefore the duties payable.

Tax optimisation 2025: IR vs IS for exceptional residences :

Transparent regime (IR) for high-end properties :

By default, an SCI is subject to income tax (IR). Property income is reported in the partners' tax returns and is subject to their marginal tax rate.

For an unlet property, this regime is simple and appropriate. In the case of a rental property (e.g. a luxury villa in Cap Ferret), the expenses are deductible and the property deficit can be offset against overall income (up to a limit of €10,700 per year).

Corporate tax option for complex property portfolios
The corporate tax option is irrevocable and completely changes the tax treatment. The SCI is then taxed on its profits at a rate of 15% and then 25% above £42,500 (2025).

This regime is attractive for capitalising profits at a lower cost or benefiting from the accounting depreciation of buildings, which is a particularly significant advantage for listed residences or wine-producing châteaux.

Transfer strategies for prestigious real estate assets
Disposal and valuation of shares
The disposal of SCI shares allows parents to retain usufruct (income and decision-making rights) and transfer bare ownership to their children. Upon the death of the usufructuary, full ownership is automatically restored without additional fees.

Specific allowances for life estates
Article 793 of the French General Tax Code provides for partial exemptions from inheritance tax for certain assets (e.g. agricultural or wine-growing estates). For wine-producing châteaux held in SCIs, it is possible, under certain conditions, to benefit from a partial exemption of up to 75%.

Impact of the IFI on SCIs that own vineyards
The property wealth tax (IFI) includes SCI shares in its calculation. However, assets considered to be professional (e.g. directly operated vineyards) may be exempt.

Plan ahead for your property assets with Bordeaux Sotheby’s International Realty !!

A family-owned SCI (property investment company) is an excellent tool for managing and transferring exceptional property assets, particularly in Bordeaux and Nouvelle-Aquitaine. From flexible ownership to inheritance optimisation, it allows you to secure, develop and transfer prestigious property assets.

However, setting one up requires legal and tax expertise. The services of notaries, tax lawyers, wealth management advisers and specialist agents are essential for building a tailor-made SCI. Anticipating means protecting !