Photo par Images_of_Money via Flickr (CC BY 2.0)In brief:
- An SCI makes it easier to jointly own and transfer a property.
- LMNP status allows depreciating a furnished rental property, which sharply reduces taxable rental income.
- Real estate capital gains benefit from progressive allowances based on holding period.
- The choice between an income-tax SCI or a corporate-tax SCI depends on the wealth strategy pursued.
The SCI, a tool for joint ownership
A société civile immobilière (SCI) lets several people, often family members, jointly own a property through shares rather than direct co-ownership. It eases decision-making and the gradual transfer of wealth through share gifting.
Income-tax SCI or corporate-tax SCI
A standard SCI falls under income tax by default, with partners taxed directly on their share of property income. Electing for corporate tax is possible, with a depreciation regime for the property but different taxation upon resale.
LMNP: renting furnished with a tax advantage
Non-professional furnished landlord status applies to renting out a furnished property, under certain annual revenue conditions. Its main tax advantage is the ability to depreciate the property and furniture for accounting purposes, which sharply reduces, or even cancels, taxable rental income for several years.
SCI or LMNP: a summary comparison
| Criterion | SCI | LMNP |
|---|---|---|
| Number of owners | Several partners | One or more direct owners |
| Type of rental | Unfurnished or furnished depending on bylaws | Furnished only |
| Main tax advantage | Easier wealth transfer | Property depreciation |
The taxation of a resale
“Real estate capital gains of individuals benefit from progressive holding-period allowances, up to a full exemption beyond a certain number of years.” — BOFiP, 2026
- Calculate the gross capital gain: sale price minus purchase price and justified costs
- Apply the holding-period allowances applicable to income tax and social contributions
- Check the specific regime applicable if the property was held through a corporate-tax SCI
This rental property taxation differs from the one applying to businesses and the CFE, but a manager can be concerned by both topics at once. A chartered accountant or a regulated professional can support this choice depending on the complexity of the setup.
Frequently asked questions
What is the tax advantage of an SCI?
An SCI makes it easier to jointly manage a property and to transfer it gradually through share gifting, with a choice between income tax and corporate tax depending on the wealth strategy pursued.
What is LMNP status?
Non-professional furnished landlord status allows renting out a furnished property under an advantageous tax regime, notably through depreciation that significantly reduces taxable rental income, subject to revenue and registration conditions.
How is real estate capital gains tax calculated?
The capital gain is the difference between the sale price and the purchase price, adjusted for justified costs and works, with progressive allowances for holding period up to a full exemption after 22 or 30 years depending on the tax concerned.