LATEST NEWS

13 NOVEMBER 2017

The 3% tax: the mere late filing of a return cannot trigger liability to tax!  

In its judgment of 6 November 20171, the Paris Court of Appeal ruled on the following question: Can the late filing of a n°2746 tax return be punished by the obligation to make payment of the amount of tax due? 

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FUNDAMENTALS


RENTALS

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gestion

Real estate taxation, investment assets: rentals

> Introduction
>VAT - CRL

> Profits tax
> Local taxation
> Tax audit


ACQUISITION/DISPOSAL

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acquisitions

Tax aspects of acquisitions/disposals of real estate asset

Introduction
> Real estate asset
Real estate investment company
Leasing


DEVELOPMENT

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Taxation of real estate asset, as a part of stock

> Introduction
Development operations

> Acquisition and resale
Profits tax

 


STRUCTURATION

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Tax aspects of the legal methods oh holding investments

Introduction
Unregulated structures 

Regulated structures 


INDIVIDUALS

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Taxation of the real estate assets of private individuals

> Introduction
> Rental income
Capital gains on real estate
Furnished rentals
Wealth tax
Gifts / Inheritances
Subdivision


INTERNATIONAL

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Internatial investments: French tax aspects

Introduction
> Institutional investors / Companies
> Private individuals

TAX AUDIT
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Tax audit


Société Civile de Placement Immobilier (SCPI)

Real estate investment trusts (Sociétés Civiles de Placement Immobilier, SCPI)


 
 
 
 
 
 
 
 
 
 
 
 
 
 

At the end of 2015

  • 166 managed SCPI;
  • capitalisation: approximately 35 billion Euros;
  • net annual funds: approximately 1.857 billion Euros.


SCPI are SCI that do not pay corporation tax (and do not have the option to do so) and make public offerings. As a result, they are accredited by the AMF (the French Financial Markets Authority) and are managed by a management company, which is itself AMF-accredited.

The activity of SCPI is limited (since the transposition of the AIFM directive) to purchasing or constructing real estate assets with a view to renting them out.

SCPI are regulated structures and are subject to a number of constraints, notably in terms of their levels of indebtedness, construction, purchase and resale.  

Profits tax

In tax terms
SCPI do not pay corporation tax and their shareholders are taxed on their share of the profits, whether these are actually distributed or not, as with a SCI under ordinary law.

The SCPI enables its shareholders to benefit from the various regimes (notably “Scellier”, “Malraux” and “Duflot”) applicable to income from property. This type of SCPI is usually described as a “tax SCPI”.

Consequently, many SCPI have been put in place to enable investors who are private individuals to benefit from the various preferential tax regimes, without themselves having to suffer the management constraints imposed by these regimes (it is the SCPI and its management company that act as guarantors of compliance with the terms imposed by tax law).

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Thus there are so-called “Duflot”, “Scellier”, etc. SCPIs, which enable their holders to benefit from the relevant tax regime!

Disposal of shares

Disposals of shares in SCPI are subject to the ordinary law regime:

  • capital gains are taxed according to the rules applicable to capital gains on real estate; and
  • registration fees are charged at the rate of 5%.