Heritage: European SCPIs
More and more French investors are turning to European SCPIs, in search of performance and diversification. These SCPIs are attractive in many ways, but their main advantage is the holding of foreign real estate assets, to benefit from reduced taxation!
Let us remember the principle of the SCPI. It is a real estate vehicle for investing in collective investment shares. The vast majority of these investments are made in professional real estate (offices, shops, logistics), which generate rents, which are paid to investors in the form of dividends. In other words, SCPIs provide regular additional income.
One question remains, is the SCPI advantageous and adapted to all tax systems?
It should be noted that the income generated by the SCPI is property income that is included in taxable income. Thus, the calculation is as follows:
Land income x (TMI (marginal tax bracket) + Land income x CSG (17.2%))
Therefore, the higher the marginal tax bracket of a household, the less attractive the transaction will be. A household with an IMR of 30% will be taxed at almost 50% of the income created, which significantly impacts the performance of the operation ...
A solution: European SCPIs!
In addition to the diversification of your SCPI portfolio, SCPIs whose assets are based outside France allow you significant savings due to the absence of CSG.
You are exempt from 17.2% social security contributions, which represents a significant saving.
What about IS taxation?
Companies subject to corporation tax may also find it beneficial to invest in a foreign REIT, and invest its cash there.
For legal persons, the tax system is very attractive. Indeed, for companies with IS, there is generally a total exemption from real estate income received by foreign SCPIs, due to tax treaties established between countries.
For any further information, do not hesitate to contact one of our wealth advisers on 01 45 03 80 96.
