Buying through an SCI in France
Many overseas buyers hear about the SCI, a French property-holding company, and wonder if they should use one. It can help with joint ownership and passing property on, but it is not right for everyone. Here is a plain introduction, and how the financing works.
General information. This page is a general introduction, not legal or tax advice. Set up and structure an SCI with a notaire and a tax adviser. Yann Nachtrieb, registered mortgage broker (COBSP) and insurance broker (COA), and financial investment adviser (CIF), ORIAS no. 26009903.
What an SCI is
An SCI (société civile immobilière) is a French civil company whose purpose is to own property. Instead of owning the house directly, you own shares in the company that owns it. It is widely used to buy together, to organise ownership between family members, and to plan how property passes on over time.
It is a structure, not a tax trick. Whether it suits you depends on your family situation, your country of residence and your goals, which is exactly why a notaire and a tax adviser should set it up.
Why overseas buyers consider one
Three reasons come up most. Buying with others, where shares make each person’s stake clear. Passing property to children gradually, by giving shares over time. And avoiding the rigidity of direct joint ownership. Against that sit the costs and the ongoing admin: an SCI has accounts and formalities, and the tax treatment must be chosen with care.
It is a trade-off, not a default. For a simple purchase by a couple, buying directly is often simpler.
SCI, at a glance
| Point | In short |
|---|---|
| What you own | Shares in a company, not the house directly |
| Good for | Joint ownership, passing on over time |
| Cost | Set-up, accounts, ongoing formalities |
| Financing | Banks lend to an SCI, usually with personal guarantees |
General pointers only, not legal or tax advice. The right structure depends on your situation; confirm with a notaire and a tax adviser.
How the financing works
Banks do lend to an SCI, but they look through the company to the people behind it. The members usually give personal guarantees, and the same criteria apply as for a personal loan: the 35% debt-to-income rule, a deposit, which for a non-resident is often 20 to 30%, and evidenced income. In practice, financing an SCI purchase is close to financing a personal one, with the company layer on top.
My role is the financing side. For the legal and tax structure of the SCI itself, you work with a notaire and a tax adviser, and I build the mortgage around the decision you make with them.
Frequently asked questions
Does an SCI save tax?
It can change how a property is owned and passed on, but it is not an automatic tax saving, and the treatment must be chosen carefully. Take tax advice before deciding; this page is general information only.
Can a non-resident set up an SCI?
Yes, overseas buyers do use SCIs, but the implications differ by country of residence. A notaire and a tax adviser should confirm it fits your situation.
Will a bank finance an SCI purchase?
Yes, usually with personal guarantees from the members and the same criteria as a personal loan. The financing is close to a personal mortgage, with the company structure on top.
Let’s handle the financing.
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