SCI: IS or IR, which tax regime to choose in 2026?

Updated January 2026 - The Société Civile Immobilière (SCI) is the reference tool for the management and transfer of real estate assets. But should we opt for IS or stay with IR? This guide details both options.

By default, an SCI is fiscally transparent: income is taxed directly in the hands of the partners up to their shares.

Taxation of land income

Rents received via an SCI at the IR are declared in property income:

• ▸30% reduction if micro-land holding (income < €15,000)
• ▸Real regime: deduction of real expenses (works, interest, insurance, management)

Advantages of SCI at IR

✅ Real estate capital gains: regime for individuals with reductions for holding period (total exemption after 30 years) ✅ Simplicity: no mandatory commercial accounting ✅ Land deficit: attributable to overall income up to €10,700/year ✅ Ideal for the transfer and dismemberment of property

Disadvantages of SCI to IR

❌ Taxation at the TMI (sometimes 41% or 45% + 18.6% of PS) ❌ Impossible to depreciate the property ❌ Attributable deficit limited to €10,700/year (the rest is carried forward)

The option for IS transforms the SCI into a fiscally opaque entity, taxed like a commercial company.

Taxation of IS profits

• ▸Reduced rate 15% on the first 100,000 euros of profit
• ▸Normal rate 25% beyond

The big advantage: depreciation

At the IS, the SCI can depreciate the real estate (excluding land):

• ▸Depreciation period: 20 to 40 years depending on the nature of the property
• ▸Tax results often zero or very low
• ▸Example: Building at €500,000 → depreciation of €12,500/year over 40 years

Advantages of SCI at IS

✅ Depreciation: significant tax savings ✅ Reduced corporate tax rate (15% up to €100,000) ✅ Total deductibility of charges (interest, management, works) ✅ Ideal for LMNP (furnished rental) in SCI IS

Disadvantages of SCI to IS

❌ Professional capital gain on resale (no reduction for duration) ❌ Double taxation of dividends (IS + flat tax 31.4%) ❌ Business accounting required (accountant recommended) ❌ Irreversible: once the IS option is taken, it is difficult to return to IR

SCI over IR is preferable if:

• ▸You anticipate a resale in the medium term (< 15 years)
• ▸Your objective is family transmission
• ▸You have a low TMI (< 30%)

SCI to IS is preferable if:

• ▸You rent furnished accommodation (LMNP)
• ▸Your TMI is high (> 30%)
• ▸You hold the building for a very long term
• ▸You wish to integrate the SCI into a holding company

For investors with several properties, the Holding IS → SCI IS setup allows:

1. ▸Return the dividends from the SCI to the holding company (parent-daughter regime: 95% exempt)
2. ▸Reinvest profits in new assets without immediate taxation
3. ▸Optimize asset transmission

Tip from our firm: each situation is unique. A heritage study (on estimate) will allow you to determine the optimal regime for your real estate investments.

📞 Contact our LMNP/SCI expert: 01 48 48 24 14