Are the SCI shares taxable within the framework of the IFI? Many taxpayers Owners of shares in SCIs (real estate civil companies) are rightly asking this question. Indeed, since the passage of ISF (Solidarity Tax on Wealth) to the IFI (Real Estate Wealth Tax), movable property is no longer taxable, and the new tax base is reduced to only real estate.
Shares in SCIs and IFIs: The Fundamentals
While the shares of SCI, as shares, can be considered in certain circumstances as movable propertyWhat about their taxation under the French wealth tax (IFI)? The answer is yes. Indeed, it has been decreed that shares in a French real estate investment company (SCI), as shares in a company whose primary purpose is the management and acquisition of real estate, correspond to real estate held indirectly. The same applies to real estate stocks.
The value to be declared for properties held through shares in a French real estate investment company (SCI) is based on the taxpayer's percentage ownership. For example, if a person liable for the French wealth tax (IFI) owns 15% of the shares in an SCI with real estate assets worth €6,000,000, they must declare 15% of €6,000,000, or €900,000. The same applies to other properties. real estate assets included in the tax base for the IFI (French wealth tax), the debts and the liabilities can be deducted from the value of the shares at the time of filing via form 2042-IFI.
Please note: While the primary residence is generally subject to 30% discount on his market value Under the French Real Estate Wealth Tax (Impôt sur la Fortune Immobilière), this allowance does not apply if the main residence is held through a French real estate investment company (SCI). In this case, each partners must declare the representative value of the shares he holds, as for classic SCI shares, and the allowance is not applicable.
The tax rate on SCI shares for IFI purposes
Shares in a French real estate investment company (SCI) are subject to the same tax rate as directly held real estate assets. In 2022, the French wealth tax (IFI) scale remains the same as in previous years, namely:
| Limits of the slices
(Net taxable assets) |
Applicable rate for the IFI |
| From €0 to €800,000 | 0% |
| Between €800,000 and €1,300,000 | 0,50% |
| Between €5,000,000 and €10,000,000 | 0,70% discount |
| Between €5,000,000 and €10,000,000 | 0,70% |
| Between €5,000,000 and €10,000,000 | 1% |
| Between €5,000,000 and €10,000,000 | 1,25% |
| Over €10,000,000 | 1,5% |
Reduce the amount of your IFI
While taxpayers holding shares in SCIs and/or other real estate assets with a total value exceeding €1,300,000 are indeed liable for the IFI (French wealth tax), they do have the option of reducing their tax liability by making a tax-deductible donation to an eligible organization.
The Pasteur Institute of Lille, as a recognized public-benefit foundation, is authorized to receive donations deductible from the French wealth tax (IFI). Donations made entitle the donor to a tax reduction equivalent to 75% of the donation amount, up to an annual limit of €50,000, i.e., a donation of €66,667.
Donations represent 85% of the foundation's resources and are essential to the continuation of the work carried out by research teams to combat cardiovascular, inflammatory, infectious and neurodegenerative diseases, as well as cancer and diabetes. The generosity of donors is a determining factor in the future of medicine, and consequently, in the future of patients today and tomorrow.
