SCI to IS: definition, taxation and comparison

Updated March 2026 - The IS SCI is attractive because it allows the building to be depreciated and taxes to be better controlled during the holding phase. But it's not a miracle diet. The choice between SCI at IS and SCI at IR modifies the reading of the project: distributable income, accounting, reinvestment capacity, future added value and transmission.

By nature, the SCI is in principle subject to income tax. However, she can opt for corporate tax.

Concretely, this means:

• ▸the company becomes taxed on its own results;
• ▸it keeps complete commercial accounts;
• ▸it can carry out depreciation;
• ▸partners are only taxed personally in the event of remuneration or distribution.

The main reason lies in the depreciation + capitalization couple.

During ownership, the SCI with IS can deduct operating expenses, loan interest and depreciate the building according to its components. Result: the tax profit can be significantly lower than the cash actually collected.

The SCI at IR retains powerful assets when:

• ▸the objective is family transmission;
• ▸the logic is that of long holding without the need for high capitalization;
• ▸you wish to maintain the property capital gains regime for individuals;
• ▸the property is intended to be preserved in a heritage rather than financial logic.

During operation

• ▸IR: the result goes back to the partners, whether it is distributed or not.
• ▸IS: the company pays the tax, then a second layer may appear in the event of a distribution.

For resale

• ▸IR: we apply the logic of real estate capital gains for individuals.
• ▸IS: the exit follows the logic of professional capital gains, with a potentially heavier effect after depreciation.

In terms of management

• ▸IR: lighter accounting in many cases.
• ▸IS: more technical accounting and tax obligations.

This reflection can be supplemented by our resources on SCI at IS or IR, Holding company or SCI and real estate tax consultation.

Hayot Expertise Advice: The IS option should never be chosen on the sole basis of short-term tax savings. It must be validated with a resale scenario and a transmission scenario.

• ▸choose IS without simulating resale;
• ▸underestimate the level of accounting formalization;
• ▸confuse available cash flow and distributable income;
• ▸create an SCI at the IS for a simple family objective.

We carry out numerical IR/IS comparisons, with projections of rents, debt, exit taxes and asset impacts.

👉 Request a SCI IR / SCI IS simulation

The IS SCI is an excellent tool when it corresponds to a capitalization and reinvestment project. It becomes a bad choice when it is retained reflexively.

📞 Are you hesitating between SCI at the IS and SCI at the IR? We can model both scenarios before any decision is made. Make an appointment with Hayot Expertise

(Official sources: BOFiP - tax regime for partnerships, Service-Public.fr - SCI and option to IS, impots.gouv.fr - land income and real estate taxation)