Résidence principale en SCI - Attention aux pièges

Summary

In this video, Patrick from Dougs, an expert in accounting, explains how entrepreneurs can use a Société Civile Immobilière (SCI) to purchase their primary residence, discussing both income tax and corporate tax options. He covers the pros and cons of each approach, emphasizing transparency in fiscal terms, tax advantages, and potential pitfalls. Patrick highlights the benefits of structuring property ownership through a SCI, including tax deductions and protection for families in case of death. He also provides insight into the strategic use of a holding company and the financial benefits, while warning of the potential tax consequences upon selling the property.

Takeaways

• 😀 A Société Civile Immobilière (SCI) can be used to purchase a primary residence, either under income tax (impôt sur le revenu) or corporate tax (impôt sur les sociétés).
• 😀 A SCI under income tax operates as a transparent tax entity, meaning the company itself doesn't incur taxes, and the owners are taxed on personal income.
• 😀 The main advantage of using a SCI with income tax is the possibility of fiscal transparency, which can help with estate planning and protection in the case of death or restructured families.
• 😀 Renting a property within a SCI under income tax can be done without charging rent, making it possible to use the property without paying rent.
• 😀 If opting for corporate tax (impôt sur les sociétés), the SCI becomes a separate legal entity, and the company must file a corporate tax return and maintain accounts.
• 😀 Choosing a SCI under corporate tax allows for various deductions such as notary fees, agency fees, and property depreciation (except for land).
• 😀 A SCI under corporate tax can result in a tax-free period of 15 to 20 years, where rent is received without paying taxes, due to the deductible expenses.
• 😀 However, upon selling the property, there will be a tax liability on the capital gains (plus-value) if the SCI is under corporate tax, unlike personal ownership where capital gains may be exempt.
• 😀 The decision to choose a SCI under corporate tax should be made carefully, particularly if expecting significant capital gains on the property in the future.
• 😀 A SCI under corporate tax can be useful for those with a holding company, as it allows for minimizing social security charges and taxes on personal withdrawals from the company.
• 😀 If the SCI is owned by a holding company, the individual can live in the property and pay rent, which would be deductible at the corporate level, avoiding personal tax liabilities.

Q & A

What is the purpose of an SCI in the context of buying a primary residence?

An SCI (Société Civile Immobilière) is a legal structure used for owning property in France, which can help with wealth management, asset protection, and organizing property ownership for individuals, especially in situations like blended families or when planning for a partner's death.

What are the two main tax options available for an SCI?

The two main tax options for an SCI are 'impôt sur le revenu' (income tax) and 'impôt sur les sociétés' (corporate tax). The choice of tax regime affects how profits and gains are taxed.

What is meant by 'transparency' in the context of SCI with impôt sur le revenu?

When an SCI is taxed under 'impôt sur le revenu', it is considered a 'transparent' entity for tax purposes, meaning the income is taxed directly on the individuals owning the SCI, and not at the corporate level.

Why would someone opt for the 'impôt sur les sociétés' tax regime for their SCI?

Opting for 'impôt sur les sociétés' allows the SCI to deduct certain expenses such as notary fees, agent fees, and property depreciation, potentially reducing taxable income and enabling long-term tax deferral. It also allows the use of a holding company structure for tax efficiency.

What is the impact of choosing 'impôt sur les sociétés' on the sale of the property?

When the property is sold under the 'impôt sur les sociétés' regime, the SCI will be subject to corporate tax on any capital gains, unlike with a personal residence where capital gains can be exempt.

What are the advantages of having a holding company in an SCI structure?

A holding company can help reduce personal taxes on income by keeping funds within the SCI and the holding company, rather than withdrawing them personally, thus avoiding social charges and additional taxation.

Is it legal to live in a property owned by an SCI without paying rent?

No, it is illegal to live in a property owned by an SCI without paying a fair market rent. This could be considered an abuse of company assets. The rent must be reasonable and in line with market rates.

Can an SCI be used to protect assets in case of the owner's death?

Yes, an SCI can help protect assets, especially in blended families, by structuring ownership in a way that simplifies the transfer of property in the event of death, ensuring that the surviving partner or family members are protected.

What expenses can be deducted when the SCI is taxed under 'impôt sur les sociétés'?

Under 'impôt sur les sociétés', the SCI can deduct various expenses including notary fees, real estate agent fees, maintenance costs, and depreciation on the property (except for the land).

What is the primary reason someone might avoid choosing 'impôt sur les sociétés' for their SCI?

The primary reason to avoid 'impôt sur les sociétés' is if the owner expects significant capital gains from the property. With 'impôt sur les sociétés', any capital gain realized upon sale will be subject to corporate tax, whereas with personal income tax, a primary residence may be eligible for capital gains exemption.