how SCPIs are taxed

The dividends regularly paid by real estate investment companies (SCPIs) to investors, the “shareholders”, come from the rental of the buildings they manage. They are therefore, as such, considered as property income. For savers, the taxation of the latter can take two forms.

On the triple condition of already owning a rental property, of receiving property income from it and of receiving each year a total of rents and income from their SCPIs of less than 15,000 euros (before charging charges and loan interest), individuals are subject by default to the microfoncier regime.

It allows you to benefit from a flat-rate allowance of 30% on all gross property income. The remaining 70% is integrated with other income (salaries, retirement pensions, etc.) and taxed at the traditional income tax scale. “This property income is also subject each year to social security contributions of 17.2%”, recalls Olivier Rozenfeld, senior consultant for the Harvest group.

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Those who do not meet the previously stated criteria, or who decide to give up microfoncier, are taxed at the real regime. In this case, they deduct from the gross property income that they collect all of their expenses (management fees, loan interest, etc.). The remaining balance is then taxed with their other income at the classic scale, plus social security contributions of 17.2%.

Capital gains exempt after thirty years

Small subtlety for SCPIs investing in assets located abroad: to prevent income from these assets from being subject to double taxation (they have already been taxed in the country where the building is located), they do not generate additional tax in France for unitholders. And as it is income from foreign sources, they also escape social security contributions.

Be careful, these incomes still enter the tax base of savers: they can therefore, mechanically, increase their marginal tax bracket.

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At the time of resale, the classic tax regime for capital gains on real estate applies: if the shares are sold for more than they were purchased, the difference is subject to a flat rate tax of 19% in respect of income tax, and social security contributions of 17.2%.

However, from the sixth year of ownership, a reduction is applied to the tax base. There are two scales.

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