Investing in real estate in a civil property company or in your own name: what to choose?

Investir dans l’immobilier en SCI (Société civile immobilière) ou en nom propre ? Il s’agit d’une question qui revient fréquemment de la part des investisseurs. Cependant, il semble difficile d’apporter une réponse tranchée sur le meilleur mode de détention. Chaque option présente ses avantages opérationnels, juridiques et fiscaux respectifs.

En nom propre, vous pourrez tirer des revenus locatifs importants et envisager une revente à l’avenir. En SCI, vous aurez la possibilité d’investir à plusieurs, de réinvestir vos revenus locatifs et de prévoir une transmission. Le choix dépendra notamment de votre situation, de vos objectifs, de votre volonté à structurer le patrimoine et de votre TMI (Taux marginal d’imposition). Alors, comment décider ? Après la lecture de cet article, vous serez capable de choisir le mode de détention adapté à votre projet d’investissement locatif.

Investing in real estate in SCI

The SCI is a civil company composed of at least two people. This legal regime is normally used to acquire real estate in order to rent it unfurnished.

The SCI for greater financing leverage

Creating an SCI presents a serious advantage for financing the purchase of one or more real estate properties. For a real estate loan in an SCI or SARL, you can subscribe to it in the name of the company or the partners. In any case, the bank will be able to estimate the borrowing capacity of the company with the debt capacity of each partner according to their income.

The SCI for the protection of real estate

Creating an SCI has certain advantages for the protection of your real estate assets. This company represents a legal entity. Thus, its assets are different from the personal assets of the partners. In the event of financial difficulty in your investment project, creditors only seize the shares of the SCI. 

In addition, its creation can facilitate the transfer of your real estate assets while avoiding joint ownership. It is true that its creation cost is expensive and its administrative formalities complicated. However, the SCI can prove to be an interesting way to distinguish the real estate assets of a company from those of its partners.

The SCI, tax regimes

In terms of taxation, you can distinguish between SCIs with IR ( Income Tax ) and SCIs with IS ( Corporate Tax ). SCIs with IR concern in particular bare rental. Considered as a commercial activity, furnished rental is only permitted up to 10% of the SCI's turnover.

Si le résultat est positif, le revenu sera imposé à l’IS au taux de 15 % à 25 %. Il s’agit de la première imposition. À noter que le seuil de bénéfice est de 38 120 euros. Une deuxième imposition sera appliquée sur les dividendes à l’IR. Ces derniers sont soumis au PFU (Prélèvement Forfaitaire Unique) de 30 %.

Toutefois, si cette option est plus favorable, les contribuables peuvent opter pour une imposition au barème de l’IR. Dans ce cas, ils continueront de bénéficier de l’abattement de 40 % et d’une part déductible de contribution sociale généralisée (CSG). Celle-ci est de 6,80 % sur un total de prélèvement sociaux de 17,20 %. La SARL, quant à elle, est une société dédiée à une activité industrielle, commerciale, agricole ou artisanale. Comme pour la SCI, vous pouvez également créer une SARL imposée à l’IR ou une SARL imposée à l’IS.

Real estate purchase in SCI

A real estate purchase is generally formalized in three stages with the seller. These are the offer, the signing of the preliminary contract (sales agreement) and the authentic deed (handing over of keys). If in SARL, you can buy a rental property alone or with others , you will have to have at least 2 partners by investing in SCI. This method of ownership allows you to have more means. With your partners, you can easily acquire entire buildings. Note that the latter are more profitable than individual apartments.

Whether in a civil property company or an SARL, the withdrawal period (10 days) depends on the company's corporate purpose. When the corporate purpose is the acquisition of a main residence by cohabitants or the transfer of family assets, the company can benefit from the period. If it involves renting buildings in a civil property company, whose corporate purpose is the acquisition, management and administration by rental, it will not be entitled to do so.

Property management in SCI

Once the acquisition is completed, you must rent out, operate or manage the property. Generally, the conditions for managing a property in a civil property company are more restrictive than in your own name. In a civil property company or non-family SARL, the duration of a bare lease is 6 years.

In furnished rental, the duration of a classic furnished lease is 1 year minimum with automatic renewal. That of a student furnished lease is 9 months non-renewable. If it is a mobility lease, the duration is 1 to 10 months, renewable with the agreement of both parties.

In the event of unpaid rent or damage, the request for a deposit is not authorized for all tenants in a SCI or SARL (non-family). This particularly concerns student tenants without a scholarship. This is not the same case in a family SCI, whose partners are members of the same family (grandparents, parents, children, etc.). For this company, asking the tenant for a deposit is entirely possible.

Pour déclarer le commencement de l’activité locative, vous devez immatriculer votre activité en SCI à l’aide d’un formulaire M0. Il s’agit plus particulièrement du CERFA N° 13958. Ce formulaire permet notamment de déterminer le choix du régime fiscal (à l’IR ou à l’IS).

Resale in SCI

If you are considering reselling your property, you may realize a capital gain or a capital loss. Unlike a capital gain on the resale of a primary residence, the capital gain on a rental property is taxed. There are indeed several tax regimes for capital gains on resale depending on the tax regime adopted during the management of the property.

Among them, you can distinguish the capital gains of individuals that apply to the IR in SCI or SARL. These real estate capital gains are equal to the difference between the sale price of the property and its purchase price. The capital gains of professionals, they apply to the IS in SCI or SARL. Before calculating them, however, you must determine the capital gain base. It corresponds to the difference between the transfer value and the book value of the property.

Transfer of real estate in SCI

Holding shares is a good legal way to organize the transfer of your real estate assets. In order to facilitate this transfer between generations, many mechanisms are currently provided for by law. As part of a donation, parents can give up to 200,000 euros to each of their children, without paying gift tax. Beyond this amount, called an allowance, the amounts can be taxed at a progressive rate ranging from 5% to 45%. Note that the allowance is renewable every 15 years.

Another device is the dismemberment of shares. It effectively allows the separation of bare ownership and usufruct (income and enjoyment of the property). It is entirely possible for a child to become a bare owner. The parents, for their part, will retain the usufruct. In a company, this practice allows the parents to always manage the property.

 

Investing in real estate in your own name

Investing in rental property in your own name implies that you are making a commitment alone and in your name. In concrete terms, you are responsible for the purchase of the property, its maintenance, its rental, tax declarations, etc. 

A good solution to start investing

Buying in your own name is often recommended for beginners. This regime will effectively allow you to familiarize yourself with real estate investment. By investing in your own name, you will not need to create a company. 

This is also the major advantage of this type of ownership. Thus, you do not have to carry out any administrative formalities such as drafting statutes, general meetings, publications in the legal notices journal, etc. You will also not draw up annual accounts.

Rental property, unfurnished or furnished

Before investing, however, you must choose between unfurnished rental and furnished rental. For unfurnished rental property, you will have to declare your rental income in the property income category. As for the returns from furnished rental property, they will have to be declared among the BIC ( Industrial and Commercial Profit ) income. If you choose the classic furnished rental, the furnished lease will only last 1 year compared to 3 years for unfurnished rental.

Acquisition in own name, tax regimes

In terms of taxation, buying in your own name has certain advantages, including the LMNP status ( Non-professional furnished rental ). Under the first status, the BIC income ceiling is 23,000 euros per year. As for the tax regime, a company and a real estate investment project in your own name are generally subject to income tax (IR). In order to optimize the taxation of your income, you can opt for the “Micro” or “Real” tax regimes.

In the micro regime, you must deduct a flat-rate allowance from your rental income to calculate your net taxable income. In a rental investment in bare rental, the allowance is 30% of your rent, excluding charges if it is a micro-land regime. For this tax regime, the income ceiling is €15,000 per year. In classic furnished rental, the micro-BIC allowance is 50%, and 71% for furnished tourist premises or a guest room. Here, income is capped at €72,500 per year.

En optant pour le régime réel, vous devez calculer le revenu net imposable en déduisant les charges et les amortissements de vos revenus locatifs. Au foncier-réel (location nue), ces charges incluent les assurances, les frais de gestion par agence, les travaux de rénovation, etc.

En régime BIC-réel (location meublée), tous les frais engagés dans l’intérêt de votre projet seront déductibles, soit en charges, soit en amortissements comptables pendant plusieurs années. En déduisant un amortissement de votre bien immobilier, vous pouvez souvent obtenir un revenu net imposable de 0 euro pendant 8 ans minimum.

On the other hand, your income will be heavily taxed at your marginal tax rate with a rate of 17.2% for social security contributions (PS). This is also a major disadvantage of investing in your own name. If, for example, your marginal tax rate of 41% is added to this PS rate of 17.2%, your taxable real estate income will be taxed at 58.2%.

 

Real estate purchase in one's own name,

In your own name, you can buy alone or with others in joint ownership. Joint ownership refers to a situation in which two or more people own the same property. For example, a couple who buy a rental property. Most investors often avoid this joint ownership regime. In the event of a dispute, a joint owner will indeed be entitled to force the other joint owners to sell the property. 

Regarding the withdrawal period, you have 10 days from the day after signing the preliminary contract (sales agreement). Also, most real estate investments are made on credit. The real estate loan effectively allows the investor to benefit from the leverage effect and optimize the tax advantages. In your own name, it will be in the name of the purchaser. By investing in your own name, you will be solely responsible for losses on your personal assets.

Property management in one's own name

In your own name, the duration of a bare rental lease is 3 years. In order to be able to take notice at the end of the lease, resumption for occupation is a valid reason. In furnished rental, you will be subject to the same lease durations as in SCI and SARL.

In the event of unpaid rent or damage, you can ask the tenant to find a guarantor (individual or legal entity). The latter undertakes to pay his debts. To declare the start of a rental activity, you must also register it, regardless of the tax regime. In a bare rental property investment, no form is to be completed. However, for furnished properties, you must complete form P0i if it is your first property and form P2-P4i for other properties.

Resale in own name

En nom propre, les plus-values sont aussi imposées. Dans ce mode de détention, la plus-value des particuliers s’applique aux régimes micro-foncier, foncier-réel, micro-BIC en LMNP et au BIC - réel en LMNP. Quant à la plus-value des professionnels, elle s’applique uniquement au régime BIC-réel en LMP (Location meublée professionnelle). En nom propre comme en société, les formules sont les mêmes pour calculer ces plus-values.

Transfer of real estate in one's own name

In your own name, you will not be able to make successive transfers. It is the property as a whole that will be transferred. If the value exceeds 100,000 euros (for one parent) or 200,000 euros (for two parents), gift tax will be payable.

The dismemberment of a property also proves to be a good alternative to optimizing its transmission. In one's own name, this system requires shared management of the dismembered real estate between the parents and the children.

Investing in real estate first in your own name, then in SCI

Une stratégie souvent adoptée par les investisseurs est de commencer par investir en nom propre en BIC-réel. Ensuite, ils évoluent avec des investissements en SCI. Cette technique vous permettra de ne pas dépasser vos plafonds de revenus au statut LMNP et ainsi d’éviter le statut LMP. Cette méthode peut également faciliter l’obtention de crédits immobiliers, en collaborant avec des associés moins endettés, qui pourront par la suite optimiser la capacité d’emprunt de la SCI. 

Investing in real estate in a civil property company or in your own name: what you need to remember

Le choix entre investir en SCI ou en nom propre dépend principalement de vos objectifs patrimoniaux, fiscaux et de gestion. La SCI offre une structure plus flexible pour investir à plusieurs, faciliter la transmission du patrimoine, et bénéficier de certains avantages fiscaux.

Elle est idéale pour les investisseurs à long terme cherchant à optimiser la succession et la gestion collective des biens. À l'inverse, investir en nom propre est souvent plus simple et rapide pour débuter, tout en étant avantageux sur le plan fiscal dans certains cas. Le choix du régime dépend donc de votre situation personnelle et de vos ambitions immobilières.