What do you want to know?
Why invest in SCPI?
The basis of operation of a SCPI consists of bringing together various partners within a company with the aim of jointly carrying out rental property acquisitions.
In a more concrete way, it is a question of buying real estate from several and renting it out.
Subscribing to SCPI shares allows you, from a few hundred euros, to invest in business real estate, which is generally more profitable than housing.
There are three types of SCPI:
performance SCPIs that allow you to receive regular rental income
tax REITs that generate an income tax reduction according to the corresponding tax law
SCPI of capital gain in order to be able to benefit from a strong increase in real estate capital between the date of subscription and the date of resale of its units
The managers of SCPIs build up a diversified heritage by purchasing several types of goods. Depending on the strategies, they invest in different geographic areas, several asset classes, various types of property
By buying their units, you therefore benefit from a wide diversification.
The heritage of SCPIs is much larger than what you could build up on your own
In addition, by buying SCPI shares, you delegate the management of the real estate stock to a professional: the manager of the company.
Finally, to pool your risk even more, it is in your interest to invest in several SCPIs, whose investment strategies are different, in order to benefit from an even larger and more diversified real estate portfolio.
SCPIs: Pooling risk, diversifying your wealth strategies in an accessible way
What is a real estate investment company (SCPI)?
A SCPI (Société Civile de Placement Immobilier) is a collective investment company whose object is the acquisition and management of rental property for residential or business use.
The management company that manages the SCPI will collect funds from investors. Then, it will proceed to a selection of assets or "real estate portfolio" falling within the statutes of the SCPI, that is to say corresponding to the asset strategy followed.
Finally, the investor owns shares which are the representation of his share in the real estate complex. It therefore benefits from a pro rata of the rents paid by all the investors allowing a very strong pooling of its rental risk which is found to be diluted for a large number of tenants. It is a way of building up real estate.
In addition, with a bullish real estate market, it also benefits from the revaluation of the park over time with an increase in the value of its share.
Certain SCPIs have indeed the sole objective of revaluing their share, this is the case of SCPI Capital gains.
Other SCPIs, Tax SCPIs are unlisted real estate investments that allow you to benefit from tax reductions corresponding to a benchmark tax law.
The investment in bare ownership of SCPI can be made:
live,
through a civil society subject to the IR.
It can also be carried out by a company subject to corporate tax, but this solution can prove to be costly in terms of capital gain.
The AMF recognizes two types of statutes for SCPIs, namely SCPI with fixed or variable capital.
In the case of a SCPI with variable capital, the size of the SCPI is directly linked to subscription (purchase) or withdrawal (sale) requests.
SCPIs with fixed capital enter the maximum amount of their capital in their articles of association. This amount is not fixed in time, however, and these SCPIs may see their capital change.
Presentation of the different SCPIs
SCPI Usufruct
The investment in the usufruct of SCPI shares is recommended for an individual with a significant carry-over land deficit to be consumed within a short time or for a company wishing to invest its cash in the medium term.
The acquisition of SCPI shares is generally carried out in full ownership, but it is possible that this only relates to the usufruct for a fixed period, another natural or legal person holding the bare ownership until the extinction of the temporary usufruct.
The usufruct is limited: when it expires, it ends and the usufructuary no longer has any rights to the dismembered property. Full ownership is reconstituted in the hands of the bare owner.
Reminder: Usufruct is an element of property rights. It gives its holder the right to collect income from SCPIs. The usufruct can be for life (extinction on the death of the usufructuary) or for a fixed period (extinction at an initially planned term).
The usufruct is not for life but for a fixed period.
In general, during the acquisition of the usufruct of SCPI shares, the dismemberment of property is constituted for a temporary period of 5 to 10 years. The investor can choose the period most appropriate to his objective and his investment horizon, which can reach 15 years.
Rents: Taxation at the progressive scale in the category of property income.
Investment income from the funds of the SCPI (ancillary income) : Taxation at the PFU or optionally at the progressive scale in the category of income from movable capital.
Real estate capital gains (sale of a building by the SCPI): Taxation in respect of real estate capital gains of individuals
The usufruct of SCPI shares held by an individual (= natural person) is taxable under the IFI for the value in full ownership.
SCPI land deficit
A SCPI called "SCPI land deficit" is a SCPI intended to acquire buildings that need to undergo significant renovation work and then rent them out.
Unitholders can then charge to their existing property income or to their overall income, up to a limit of € 10,700, a share of the deductible expenses incurred by the SCPI to renovate the buildings it has acquired.
Once renovated, the buildings are let by the SCPI and the partners receive regular income in the form of rents.
Each unitholder can charge a share of the land deficit realized by the SCPI on its existing land income without any limitation of amount, and the surplus on its overall income within the limit of € 10,700.
The portion of the deficit that exceeds € 10,700 or that results from loan interest can be carried over to property income for the following 10 years.
When the total income of the taxpayer is less than 10,700 €, the land deficit which could not be imputed constitutes a total deficit which can be imputed against the total income for the following 6 years.
This tax advantage is excluded from the overall cap on tax loopholes.
SCPI Pinel
A SCPI known as "SCPI Pinel" is a SCPI which owns real estate assets specially made up of buildings eligible for the Pinel system (new or rehabilitated housing), which allows unitholders to benefit from a tax reduction in addition to their share of rents.
Each unitholder benefits from a tax reduction based on the amount of his subscription retained within the limit of € 300,000 per year and per taxpayer.
The reduction rate varies depending on the duration of the rental commitment that will be made by the SCPI:
12% 6 years
18% 9 years
21% 12 years
The taxpayer must undertake to keep all of his securities until the expiry of the rental commitment subscribed by the SCPI (6 years or 9 years, extendable up to 12 years).
The duration of the rental commitment made by the SCPI is binding on the investor.
There will be no questioning of the tax benefit in the event of the taxpayer's death.
SCPI Bare Ownership
Bare ownership of SCPI shares is recommended for individuals with capital to invest or significant savings capacity and who do not need immediate income, but rather over time (deferred in the time).
The acquisition of SCPI shares is often carried out in full ownership, but it is possible to acquire only bare ownership. Another natural or legal person buys the usufruct for a temporary period. Generally, the management company is responsible for facilitating the transactions.
Bare ownership is an element of the right to property. It gives its holder the right to dispose of the property without having the enjoyment of it, the latter being reserved for the usufructuary.
This involves acquiring bare ownership of a temporarily dismembered asset. The usufruct is not for life but for a fixed period.
In general, when the bare ownership of SCPI shares is acquired, the ownership dismemberment is established for a temporary period of 5 to 20 years. The investor can then choose the most appropriate duration for his objective and his investment horizon or even mix them.
When the usufruct has expired, the management company will contact the bare owner who has become full owner in order to obtain his bank details for the quarterly payment of rents. There is no charge for the bare owner when the usufruct ends.
The investor who has become the full owner of the shares can then keep them to receive regular income and possibly give them bare ownership to anticipate the transfer or even sell them (partially or totally) in order to capture the mechanical capital gain achieved (= value of the usufruct).
The bare owner does not receive any income during the entire period of the dismemberment of property.
Bare ownership of SCPI shares is not taxable under the IFI. Correspondingly, the loan contracted for the acquisition of bare ownership of SCPI shares cannot be recorded as a liability of the IFI.
SCPI Malraux
A SCPI known as "SCPI Malraux" is a SCPI which owns real estate assets specially made up of buildings eligible for the Malraux scheme and which must be the subject of a restoration operation.
Unitholders can then benefit from a tax reduction in the year of their subscription.
When the restoration is completed and the buildings are let, they benefit from a share of rents.
Each unitholder benefits the year of the subscription from a tax reduction equal to 22% or 30% (depending on the sector) of the amount of his subscription allocated to the realization of expenses eligible for the Malraux system, retained within the limit. of € 400,000 over a period of 4 years.
When the tax reduction attributable for a tax year exceeds the tax due by the taxpayer for that same year, the balance can be charged against income tax due for the following three years. .
The Malraux tax reduction is excluded from the overall cap on tax loopholes.
The taxpayer must undertake to keep all of his securities until the expiration of the rental commitment subscribed by the SCPI. The minimum holding period will therefore be equal to the duration of the work increased by 9 years. There is no questioning of the tax benefit in the event of the taxpayer's death.
SCPI Capital gain
The investment in SCPI capitalization or capitalization has a longer-term investment objective than a return SCPI. Most of the gain for the investor is based on the capital gain which takes time to emerge.
The objective of capitalization SCPIs is to acquire goods that have a strong potential for resale and / or revaluation. Different strategies can be put in place by the managers: purchase of a building in block then cut, purchase of apartments rented at low rents, purchase of a dilapidated building to renovate ...
The direct consequence of this type of investment is a very low rental income. In fact, unlike yield SCPIs, capital gains SCPIs aim to invest in residential real estate often at low rent, leading to returns of around 2%.
For example, the rents of housing subject to the law of September 1, 1948 are often lower than the charges and work required for a suitable condition of the premises.
In the event of the sale of SCPI (Société Civile de Placement Immobilier) units at a price higher than that paid to acquire them, the capital gain accrued by the investor is subject to the same tax regime as the gain pocketed during the sale of the property. 'properties.
However, the longer the shares have been held, the lower the tax payable is.
SCPI performance
SCPIs known as "performance SCPIs" hold assets essentially made up of buildings for commercial use (offices, warehouses, shops, etc.).
This type of asset generates higher income than residential real estate and the main objective of management companies is the distribution of income.
It is a long-term investment (between 8 and 15 years), in particular to amortize costs entry which are relatively high.
The results of the SCPI are directly taxable to income tax in the hands of investors in proportion to the shares held in the capital.
They are also subject to social security contributions.
Loan interest is deductible if the units have been acquired in full ownership.
Add the possibility of benefiting from the micro-land regime when the gross annual property income is less than or equal to € 15,000 under certain conditions.
If the SCPIs are held in a life insurance contract, income and capital gains are taxed only in the event of total or partial redemption according to the life insurance tax regime.
The capital gains recorded on the sale of SCPI shares come under the regime of real estate capital gains for individuals.
The shares of SCPI enter the base of the IFI up to the fraction of their representative value of the buildings held directly or indirectly by the SCPI.
SCPI Historical Monuments
A SCPI known as "SCPI Historical Monuments" is a SCPI which owns real estate assets exclusively made up of buildings classified as Historical Monuments or registered in the Supplementary Inventory of Historical Monuments and requiring renovation work.
Unitholders can then benefit from the so-called "Historical Monuments" tax regime which allows the imputation of the deficits observed on their property income and their overall income, without limitation of amount.
Each unitholder can charge a share of the land deficit realized by the SCPI on its existing land income, and the surplus on its overall income, without any limitation of amount.
The surplus can be carried over to the overall income of the following years, up to the 6th year inclusively.
The Historical Monuments system enables the amount of the land deficit generated by the carrying out of works to be charged without limitation to its overall income. Consequently, the revenues to be taken into account for the IFI cap are greatly reduced, or even erased.
The taxpayer must undertake to keep all of his securities for 15 years. There is no questioning of the tax benefit in the event of the death of the taxpayer or in the event of a donation provided that the donees or heirs take over the commitment made by the donor or the deceased.
A SCPI (Société Civile de Placement Immobilier) is a secure savings investment that provides many advantages. When you invest in a SCPI you then hold real estate in the form of a share and not direct real estate. This investment is then managed by a management company. It is a good investment which represents a low risk by ensuring you a good return.
SCPIs are an investment solution offering an attractive return potential without being subject to the fluctuations and volatility of the stock market.
Accessible from a few hundred euros, investment in stone-paper offers new advantages to savers: valuation of existing assets, absence of daily management, establishment of additional income, diversification of capital, etc.
After subscribing to your SCPI shares, the collection of income is not immediate. This is called the period of enjoyment. It corresponds to the period of non-collection of income and varies from 3 months to 6 months depending on the SCPI chosen.
In managing your cash flow, it is important to take into account the frequency of the payment of dividends from SCPIs.
The vast majority of SCPIs pay rents to your current account quarterly.
Whether directly or in life insurance, investment in SCPI must be considered over the long term. We recommend an investment horizon of 8 to 10 years.
Like a property purchased directly, the longer the holding of units, the more the investment costs are amortized (by the payment of income and by the valuation of real estate assets).
SCPIs can be grouped into 3 main categories depending on the objective pursued.
Performance SCPIs: A performance SCPIs is a Civil Real Estate Placement Company that invests in professional real estate (Offices, shops, warehouses, hotels, nursing homes, etc.). Its objective is therefore to build up a real estate portfolio in order to place tenants there. These will logically generate income.
Gain SCPIs: Gain SCPIs (also called valuation SCPIs or capitalization SCPIs) are distinguished from yield SCPIs and tax SCPIs because they do not distribute rent. As a result, they make it possible to avoid the taxation of property income.
The objective of the SCPI of capital gain is the valuation of its assets over time. The sector of activity concerned is mainly residential real estate, unlike real estate investment vehicles which are mainly invested in professional real estate.
Tax SCPI: A fiscal SCPI is an investment company whose goal is not so much to generate income as to provide the partners with tax advantages resulting from real estate investments carried out by the company. Unlike a yield SCPI, in fiscal SCPI, it is a question of acquiring real estate for individuals.If you prefer tax exemption to gross yield, buying shares in a fiscal SCPI can therefore turn out to be a maneuver full of common sense.
You can thus benefit from an immediate tax reduction over a period ranging from 9 to 12 years depending on the type of fiscal SCPI chosen.
Advantages & disadvantages of SCPI
Real estate investment company
Example of investment via a SCPI
1
SCPI performance
Claudia wishes to obtain additional income.
It has a capital of € 70,000.
It acquires shares in SCPI and receives income of € 788 per quarter with a return net of fees estimated at 4.50%.
After paying the tax, she has additional net income of € 566 per quarter.
His savings are remunerated at 3.20% net of fees and taxes.
2
Tax SCPI: Malraux
Investor Profile
Land income: € 25,000 per year
Overall taxable income: € 250,000 per year
IMR: 41%
Investment
Acquisition of shares in SCPI Monuments Historiques for an amount of € 200,000
Subscription fee: 14%
Share of land deficit observed in the year of subscription: 45%
Setting up the tax benefit
Subscription amount net of fees: € 200,000 - 14% = € 172,000
Share of deficit: € 172,000 x 45% = € 77,400
Tax gain: € 77,400 x 41% = € 31,734
3
SCPI Bare ownership
Greg has a capital of € 100,000 to invest.
He wishes to make an acquisition of SCPI shares. The share is valued at € 100 per unit.
For a 10-year dismemberment, bare ownership represents 68% of full ownership, or € 68 per unit.
The client acquires 1,470 bare ownership shares for 100,000 € (1,470 x 68 €).
Full ownership value: 1,470 shares at € 100 per unit = € 147,000
Bare ownership value: 68% of € 147,000 = € 100,000
When the usufruct is extinguished, it joins bare ownership (without tax). The gain over 10 years is of the order of € 47,000 without taking into account a possible revaluation of the units.
