Heritage transmission is an important problem for families that seek to optimize the management of their real estate while minimizing tax costs. Among the available solutions, the Civil Society of Real Estate (SCI) is distinguished as an effective and flexible tool.
This article explores the multiple SCI advantages for the transmission of wealth, based on statistics and concrete evidence.
What is a SCI?
A Civil Real Estate Society (SCI) is a legal structure that allows several people to maintain and administer one or more real estate. Sci Partners has shares, corresponding to its investment in the company's corporate capital. This structure has several advantages for the management and transmission of real estate assets.
All fiscal advantages of the SCI
The civil real estate society provides access to many tax advantages. Here
Reduction of inheritance duty
One of the main advantages of the LME lies in the reduction of the inheritance tax. In fact, the transmission of shares of a LME is often less expensive than the direct transmission of real estate. According to current fiscal scales, the inheritance tax can be very high for real estate, reaching up to 45% of the property value for non -direct heirs (nephews, nieces, etc.).
On the other hand, the transmission of SCI shares allows you to benefit from a reduction of 100,000 euros per father and as a child every 15 years. For a family composed of two parents and two children, this represents a total exemption of 400,000 euros, renewable every 15 years. This provision allows gradually transmitting real estate assets while optimizing tax costs.
Property Income Tax
SCI also offers advantages in terms of property income taxes. The benefits made by the LME can be imposed on the Income Tax (IR) or the Corporate Tax (IS), depending on the election of the partners. The option for the IS can be advantageous if the entry of the property is high, because it allows to benefit from a more favorable tax rate and deduce certain positions not deductible when IR, such as the depreciation of real estate.
A study by the Fidal law firm has shown that families using the LME for the transmission of wealth are successful in reducing the inheritance tax significantly. In a sample of 50 successions, families who have opted for the SCI have saved on average 30% in the inheritance tax Compared to those who have chosen direct transmission.
The flexibility of the management of this investment mode
Gradual transmission
The SCI allows the progressive transmission of real estate. Parents can, for example, give SCI actions to their children as they advance, without completely marrying their inheritance. This strategy allows you to maintain control over the management of goods while preparing heritage.
Protection of heritage
Sci also offers heritage protection. In case of financial difficulties of one of the partners, creditors can only confiscate the actions of the partner breach, not real estate held by the LME. This separation between the property of the actions and the property of real estate allows to ensure family heritage.
Management facilitation
SCI facilitates real estate management by allowing collective management. Important decisions, such as the sale or purchase of goods, are collectively taken by the partners, in accordance with the rules provided for in the company's statutes. This collegial management can be an asset for families who wish to involve several members in heritage management.
A concrete example
Take the example of a family with real estate worth 1,000,000 euros. In case of direct transmission, the inheritance tax can be very high. Suppose parents want to convey this property to their two children. With direct taxes, the inheritance tax could reach 200,000 euros (assuming an average rate of 20%).
When creating a LME and gradually transmit the actions, parents can benefit from the reductions of 100,000 euros per father and as a child. Therefore, by completely using these decreases every 15 years, the inheritance tax can be reduced considerably. After 15 years, they could transmit up to 400,000 euros without inheritance tax, and renew the operation for the rest of the assets, thus optimizing transmission taxes.
The popularity of the sciles in France
According to Insee data, the number of scis created in France has increased considerably in recent years. In 2022, more than 35,000 baits were created, against around 25,000 in 2012an increase of 40% in a decade. This growth attests to the growing interest of people for this legal structure.
Real estate civil society (SCI) turns out to be a powerful tool for the transmission of real estate assets. Thanks to its tax advantages, its flexibility of management and its ability to protect heritage, the LME makes it possible to optimize the intergenerational real estate transmission. Case statistics and studies demonstrate the effectiveness of this structure, encouraging more and more families to choose this path to perpetuate their assets. However, for a successful transmission, it is recommended to be accompanied by laws of law and taxes, to maximize the profits offered by the LME.
