Income declarations for French SCIs explained

French Tax Online outlines how tax returns work under a Société Civile Immobilière (SCI)

2 February 2021
One of the ways in which a French SCI can be used is when buying a property jointly with other people
By French Tax Online

A French SCI (Société Civile Immobilière) is a company solely dedicated to owning property in France.

It can be used for many different purposes such as:

  • buying a property jointly with other people
  • managing properties and renting them out (furnished or not)
  • anticipating succession (and inheritance tax)

As soon as the SCI is incorporated you will have to submit annual returns until you close it.

SCI flow chart
Income declarations for French SCIs flow chart

You have two different tax options: income tax option and corporate tax option. It is important to highlight that furnished rental must be managed by SCI with the corporate tax option only.

For SCIs it is now mandatory to submit electronically a 2072 tax return – paper returns are no longer accepted.

There may be other solutions to these options, depending on your situation. We recommend you take professional advice.

This column is sponsored by French Tax Online, a company owned by Géraud Nayral, a French Chartered Accountant. The bilingual team at French Tax Online assist English speaking clients who live or are invested in France ensuring they comply with French tax obligations and declarations and includes completing French tax returns online for clients. French Tax Online is only able to answer queries if retained on an advisory basis. See frenchtaxonline.com or call + 33 6 68 92 19 25

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