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Property companies in France - the "société civile immobilière"

Advantages of an SCI:

 

 

1. Inheritance: the use of SCI is due some of the problems caused by traditional inheritance laws in France.
French law dictates that the death of the owner, the property is divided between the spouse and children. The decision about what to do with the property can be more complicated for example, if the property goes to an elderly widow and children, either the last or a previous marriage. The situation can become quite uncomfortable if you have stepchildren involved.
However, using a SCI and its status as parents can be named shareholders shareholders.
They can establish that the death of one of these actions happen to the surviving spouse, thereby ensuring that the control of the shares remains in the hands of parents and that any decision regarding the property should take the deceased partner.

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2. The shares of a company are easier to distribute the stationary properties, and thus, direct inheritance and property transfer is simplified.

3. The shareholder structure makes it easier to divide the shares of a company to share a property. It is easier for individuals with small budgets to pool their reserves and buy a property, which individually they would not be possible.
It is also less difficult to dispose of shares without the help of a lawyer, because the SCI are more flexible than direct property.

4. Using an SCI to buy a property, the net worth of the same may be reduced as debt for tax matters. This can minimize the French tax on wealth and inheritance.

5. If foreign residents involved, the use of an SCI can be very advantageous if the country of origin has inheritance laws more flexible than the French, as quoted below
With the death of the owner, applies law of the country where the property is located. However, if the property is purchased through an SCI, applies the law of the last country of residence of the deceased
Owning a home in France through an SCI means that the property is part of the assets of his country, unlike direct stationary properties are subject to French law

6. The terms of an SCI can be changed at any time.

Disadvantages of SCI:

Using an SCI to buy a property presumed additional costs. No matter which property is purchased, the prospective buyer must pay the seller the notary fees. If you choose to establish a SCI should be provided registration fees and annual expenses.

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