Tax Regimes for an SCI 📊
An SCI (Société Civile Immobilière) can be taxed under two regimes:
1. IR (Impôt sur le Revenu) — Personal Income Tax.
2. IS (Impôt sur les Sociétés) — Corporate Income Tax.
1. IR (Impôt sur le Revenu – Personal Income Tax) 🏡💰
How it works:
• SCI members pay taxes individually, in proportion to their share of the company’s income.
Key Features:
• The SCI itself does not pay income tax.
• Each member declares their share of income in their personal tax return.
• The tax rate depends on the member’s individual income level (from 0% to 45%).
Example:
Scenario: An SCI rents out property and earns €30,000 in rental income.
• The company has two members: Anna and Alex, each holding a 50% share.
• Their income shares:
• Anna receives €15,000.
• Alex receives €15,000.
Tax Calculation:
1. Anna’s Case:
• Pre-SCI income: €10,000 (e.g., from other activities).
• Total income: €10,000 + €15,000 = €25,000.
• Tax:
• First €10,777: 0%.
• From €10,778 to €25,000: (€25,000 - €10,778) × 11% = €1,563.
• Total Tax: €1,563.
2. Alex’s Case:
• Pre-SCI income: €20,000 (e.g., from other activities).
• Total income: €20,000 + €15,000 = €35,000.
• Tax:
• First €10,777: 0%.
• From €10,778 to €27,478: (€27,478 - €10,778) × 11% = €1,843.
• From €27,479 to €35,000: (€35,000 - €27,479) × 30% = €2,254.
• Total Tax: €1,843 + €2,254 = €4,097.
Final Taxes under IR:
• Anna: €1,563.
• Alex: €4,097.
• Total Tax: €5,660.
When is IR beneficial?
✅ Low rental income.
✅ Members with low individual tax rates.
2. IS (Impôt sur les Sociétés – Corporate Income Tax) 🏢📊
How it works:
• The SCI pays corporate tax on its profits at fixed rates:
• 15% on profits up to €42,500.
• 25% on profits exceeding that amount.
Key Features:
• The tax is paid at the company level.
• If profits are retained in the company, no additional taxes apply.
• If profits are distributed as dividends, members pay dividend tax (around 30%, including social contributions).
Case 1: Profits are retained in the company
Scenario: The SCI rents out property, earning €30,000 in income.
1. Corporate Tax:
• €30,000 × 15% = €4,500.
Summary:
• Corporate tax: €4,500.
• Members pay no additional taxes, as profits remain in the company.
When is this beneficial?
✅ For reinvesting profits (e.g., purchasing new property).
✅ When members have high individual tax burdens.
Case 2: Profits are distributed as dividends
Scenario: The SCI earns €30,000 in income and distributes the remaining profit to members.
1. Corporate Tax:
• €30,000 × 15% = €4,500.
2. Remaining Profit after Tax:
• €30,000 - €4,500 = €25,500.
3. Dividend Tax (approximately 30%):
• For Anna and Alex (50% each):
• Dividend share: €25,500 ÷ 2 = €12,750.
• Tax: €12,750 × 30% = €3,825.
• Total Dividend Tax: €3,825 × 2 = €7,650.
Final Taxes under IS:
• Corporate tax: €4,500.
• Dividend tax: €7,650.
• Total Tax: €4,500 + €7,650 = €12,150.
Conclusion:
• IR: Suitable for small incomes and members with low tax rates.
• IS: Ideal for high incomes, reinvestments, or minimizing dividend distributions.
Contact us for a free consultation tailored to your situation!
An SCI (Société Civile Immobilière) can be taxed under two regimes:
1. IR (Impôt sur le Revenu) — Personal Income Tax.
2. IS (Impôt sur les Sociétés) — Corporate Income Tax.
1. IR (Impôt sur le Revenu – Personal Income Tax) 🏡💰
How it works:
• SCI members pay taxes individually, in proportion to their share of the company’s income.
Key Features:
• The SCI itself does not pay income tax.
• Each member declares their share of income in their personal tax return.
• The tax rate depends on the member’s individual income level (from 0% to 45%).
Example:
Scenario: An SCI rents out property and earns €30,000 in rental income.
• The company has two members: Anna and Alex, each holding a 50% share.
• Their income shares:
• Anna receives €15,000.
• Alex receives €15,000.
Tax Calculation:
1. Anna’s Case:
• Pre-SCI income: €10,000 (e.g., from other activities).
• Total income: €10,000 + €15,000 = €25,000.
• Tax:
• First €10,777: 0%.
• From €10,778 to €25,000: (€25,000 - €10,778) × 11% = €1,563.
• Total Tax: €1,563.
2. Alex’s Case:
• Pre-SCI income: €20,000 (e.g., from other activities).
• Total income: €20,000 + €15,000 = €35,000.
• Tax:
• First €10,777: 0%.
• From €10,778 to €27,478: (€27,478 - €10,778) × 11% = €1,843.
• From €27,479 to €35,000: (€35,000 - €27,479) × 30% = €2,254.
• Total Tax: €1,843 + €2,254 = €4,097.
Final Taxes under IR:
• Anna: €1,563.
• Alex: €4,097.
• Total Tax: €5,660.
When is IR beneficial?
✅ Low rental income.
✅ Members with low individual tax rates.
2. IS (Impôt sur les Sociétés – Corporate Income Tax) 🏢📊
How it works:
• The SCI pays corporate tax on its profits at fixed rates:
• 15% on profits up to €42,500.
• 25% on profits exceeding that amount.
Key Features:
• The tax is paid at the company level.
• If profits are retained in the company, no additional taxes apply.
• If profits are distributed as dividends, members pay dividend tax (around 30%, including social contributions).
Case 1: Profits are retained in the company
Scenario: The SCI rents out property, earning €30,000 in income.
1. Corporate Tax:
• €30,000 × 15% = €4,500.
Summary:
• Corporate tax: €4,500.
• Members pay no additional taxes, as profits remain in the company.
When is this beneficial?
✅ For reinvesting profits (e.g., purchasing new property).
✅ When members have high individual tax burdens.
Case 2: Profits are distributed as dividends
Scenario: The SCI earns €30,000 in income and distributes the remaining profit to members.
1. Corporate Tax:
• €30,000 × 15% = €4,500.
2. Remaining Profit after Tax:
• €30,000 - €4,500 = €25,500.
3. Dividend Tax (approximately 30%):
• For Anna and Alex (50% each):
• Dividend share: €25,500 ÷ 2 = €12,750.
• Tax: €12,750 × 30% = €3,825.
• Total Dividend Tax: €3,825 × 2 = €7,650.
Final Taxes under IS:
• Corporate tax: €4,500.
• Dividend tax: €7,650.
• Total Tax: €4,500 + €7,650 = €12,150.
Conclusion:
• IR: Suitable for small incomes and members with low tax rates.
• IS: Ideal for high incomes, reinvestments, or minimizing dividend distributions.
Contact us for a free consultation tailored to your situation!