A family real estate company (SCI familiale) is a legal structure that allows individuals connected by family or marital ties to jointly own and manage real estate assets. Whether you want to purchase a property together, facilitate the transfer of assets to your children, or optimize your wealth management strategy, a family SCI offers flexibility and security. This comprehensive guide walks you through every step of your project in 2026: creation, taxation, benefits, and practical procedures.

What Is a Family Real Estate Company (SCI)?

Definition and Practical Example of a Family SCI

A family real estate company is a legal structure that allows individuals connected by family or marital ties to jointly own and manage real estate assets. Unlike co-ownership (indivision), a family SCI provides a clear and flexible framework for managing family property, whether it is a primary residence, a vacation home, or a rental building.

Let's take a practical example. Two parents and their two adult children wish to purchase a vacation home in Brittany. Instead of buying the property under a co-ownership arrangement, they create a family SCI. Each contributes capital to the company and receives shares proportional to their contribution. The house then belongs to the company, and the four family members become SCI shareholders with rights and responsibilities defined in the articles of association.

Day-to-Day Operation of a Family SCI

The operation of a family SCI is based on a clear distribution of responsibilities among shareholders. Each shareholder owns company shares that grant voting rights at general meetings, generally proportional to the number of shares held. Major decisions, such as buying or selling a property, carrying out renovation work, or amending the articles of association, are made collectively during shareholder meetings.

The day-to-day management of the SCI is entrusted to one or more managers appointed in the articles of association or elected during a general meeting. The manager represents the company, signs documents on behalf of the SCI, and convenes shareholders for collective decision-making. As provided by Article 1846 of the French Civil Code, the manager performs their duties under the supervision of the shareholders and may be removed according to the procedures specified in the articles of association.

The family SCI must also open a dedicated bank account and maintain either simplified or full accounting records depending on the chosen tax regime. This organization ensures transparent and secure management of family assets.

The Difference Between a Family SCI and a Traditional SCI

From a legal perspective, a family SCI and a traditional SCI operate in the same way. Both are governed by the same provisions of the French Civil Code and are subject to identical administrative and tax obligations. The main distinction lies in the identity of the shareholders.

In a family SCI, shareholders must be connected through family or marital relationships (parents, children, siblings, cousins, spouses, or in-laws). The primary objective is generally estate planning: facilitating the management of family property and preparing its transfer to heirs. In a traditional SCI, shareholders may be friends, business partners, investors, or professionals with no family ties. The purpose can be broader and include rental investment projects or real estate portfolio management.

This family-specific characteristic makes the family SCI particularly suitable for succession planning and wealth transfer while retaining the same flexibility in management as a traditional SCI.

What Are the Advantages and Disadvantages of a Family SCI?

The Tax and Estate Planning Benefits of a Family SCI

A family SCI offers significant flexibility in managing and transferring your real estate assets. Its primary advantage lies in facilitating wealth transfer. Rather than transferring an entire property, you can gradually transfer company shares to your children. This approach allows you to benefit from tax allowances of €100,000 per parent and per child, renewable every 15 years, significantly reducing inheritance taxes.

Another major advantage is avoiding co-ownership, which is often a source of family disputes. In an SCI, each shareholder owns clearly defined shares, with voting rights and management rules established by the articles of association. This structure provides considerable management flexibility: major decisions are made at general meetings, while the manager handles day-to-day operations without excessive formalities.

From a tax perspective, the family SCI allows you to optimize taxation according to your objectives. By default, it is subject to income tax (IR) under a transparent tax regime. Consequently, each shareholder reports their share of rental income. This income is taxed at each shareholder's marginal income tax rate, plus social contributions of 17.2%. This system allows property deficits to be deducted from overall taxable income up to €10,700 per year per tax household.

It is also possible to elect corporate income tax (IS). In that case, the SCI becomes a separate taxable entity and pays tax directly on its profits at the corporate tax rate (15% on profits up to €42,500 and 25% beyond that in 2026). Corporate taxation allows the depreciation of real estate assets and the deduction of additional expenses. However, this choice is irreversible and may become disadvantageous when selling the property or transferring family assets. The IS option is often reserved for SCIs carrying out commercial activities, such as furnished rentals.

The Disadvantages and Limitations to Consider

Despite its many benefits, a family SCI comes with constraints that should be anticipated.

The first drawback concerns the unlimited liability of shareholders toward the SCI’s creditors. If the company encounters financial difficulties and cannot pay its debts, creditors may pursue the shareholders' personal assets in proportion to their ownership interests. Although liability is unlimited, it is not joint and several: each shareholder is responsible only up to the percentage of shares they hold.

In addition, a family SCI is strictly prohibited from carrying out commercial activities. Therefore, it cannot engage in property trading or operate as a property dealer. Furnished rentals, which are considered commercial activities, automatically trigger corporate taxation, with tax implications that should be carefully evaluated.

Finally, the administrative burden may discourage certain projects. A family SCI requires proper accounting records, annual shareholder meetings with minutes, and up-to-date administrative documentation. These obligations generate recurring costs, especially if you hire an accountant. Moreover, tax authorities closely monitor family SCIs to ensure they are not used solely to avoid inheritance taxes but genuinely serve a collective wealth management purpose.

Summary Table

What Taxes Apply to a Family SCI?

The tax treatment of a family SCI is a key factor when choosing this structure for managing real estate assets. Understanding the available tax options and reporting obligations helps optimize your project and anticipate costs.

Choosing Between Corporate Tax (IS) and Income Tax (IR)

By default, a family SCI is subject to income tax (IR), meaning it benefits from tax transparency. In practical terms, the company itself does not pay tax. Each shareholder reports their proportionate share of rental income on their personal tax return. This income is taxed at the shareholder’s marginal tax rate, plus social contributions of 17.2%.

This regime allows property deficits to be deducted from overall taxable income up to €10,700 per year per tax household.

It is possible to opt for corporate income tax (IS). In this case, the SCI becomes a separate taxable entity and pays tax directly on its profits at the applicable corporate tax rates (15% up to €42,500 of profits, then 25% beyond that in 2026). Corporate taxation allows the depreciation of property assets and the deduction of additional expenses.

However, this choice is irreversible and may be less advantageous when selling the property or transferring family assets. It is generally preferred by SCIs carrying out commercial activities, such as furnished rentals.

Form 2072 and Mandatory Accounting Requirements

A family SCI must electronically file Form No. 2072 through the company’s professional tax account.

There are two versions:

• Form 2072-S (simplified version) for SCIs whose shareholders are individuals.
• Form 2072-C (full version) for more complex situations, such as corporate shareholders, business income taxation, split ownership arrangements, or depreciation regimes.

The filing deadline is May 5, 2026, with administrative tolerance until May 20.

Regarding accounting obligations, requirements vary depending on the chosen tax regime.

Under the IR regime, simplified or cash accounting is generally sufficient. This system records receipts and payments without requiring detailed balance sheets or profit-and-loss accounts. It is well suited to family SCIs managing private real estate assets.

Under the IS regime, however, full double-entry accounting becomes mandatory, including:

• A balance sheet;
• A profit-and-loss account;
• Supporting schedules and annexes.

In all cases, supporting documents such as invoices, bank statements, and rent receipts must be retained for at least six years.

To ensure compliance and secure the management of your family SCI, assistance from an accountant or a Capifrance advisor can be extremely valuable.

How to Create a Family SCI in 2026

Creating a family SCI in 2026 requires complying with several administrative and legal steps. While the process may initially seem complex, it remains accessible provided it is well organized. You may choose to create the company independently, through an online legal platform, or with the assistance of a notary to fully secure your project.

Drafting the Articles of Association and Choosing the SCI’s Name

The first step is to draft the articles of association of your family SCI. This document forms the legal foundation of the company and must contain several mandatory provisions:

• The corporate purpose (acquisition, management, and disposal of real estate assets);
• The registered office address;
• The amount of share capital and its allocation among shareholders;
• The duration of the company (generally set at 99 years);
• The appointment of the manager and the scope of their powers.

The articles of association also define the operating rules of the company, particularly the procedures for decision-making at general meetings and the conditions governing the transfer of shares.

As for the company name, you enjoy considerable freedom. You may use the family name of the shareholders, create an acronym, or choose a fictional name. However, it is advisable to verify the availability of the chosen name through the French National Institute of Industrial Property (INPI) to avoid conflicts with existing businesses.

Required Documents and Administrative Procedures

To prepare your registration application, you must gather several mandatory documents.

Each shareholder must provide:

• A copy of a valid identity card or passport;
• A declaration of non-conviction.

You must also provide:

• A declaration of beneficial owners;
• Proof of the registered office address (lease agreement, title deed, or domiciliation certificate);
• The articles of association signed by all shareholders.

Once these documents have been assembled, you must publish a legal notice in an authorized legal announcements journal (JAL) within the department where the registered office is located.

In 2026, the fixed publication fee amounts to:

• €191 excluding VAT;
• €229.20 including VAT.

The publication certificate obtained is essential for completing the registration process.

Since January 1, 2025, all SCI incorporation formalities must be completed exclusively through the INPI one-stop shop portal. You must submit the entire application online, including:

• The articles of association;
• The legal notice publication certificate;
• Identity documents;
• The declaration of beneficial owners.

The one-stop shop generally processes applications within 24 hours to 8 days, after which you receive the official Kbis registration extract of your SCI.

Creating a Family SCI Through a Notary or Online: Costs and Formalities

You have several options when creating your family SCI.

Creation Through a Notary

Creating an SCI with a notary provides maximum legal security. The notary drafts customized articles of association tailored to your family situation and estate planning objectives.

They advise you on the clauses to include and verify the legal compliance of the entire application.

Notary fees for drafting the articles and providing assistance generally range between:

• €1,200 and €2,500,

plus:

• Registration fees (approximately €66.88 including VAT);
• Legal notice publication costs.

Creation Through an Online Legal Platform

An alternative is to use an online legal platform specializing in SCI formation.

These services offer customizable templates and assistance with administrative procedures at a lower cost, generally between:

• €300 and €800.

This solution is suitable for straightforward projects and families wishing to control their budget.

Independent Creation

Finally, you may create your SCI independently by drafting the articles of association yourself.

In this case, you only pay the mandatory fees:

• Legal notice publication;
• Registration fees.

The total cost is approximately:

• €300.

However, this option requires a solid understanding of the legal framework and the risks associated with poorly drafted articles.

Checklist: Creating a Family SCI

• Draft the articles of association including all mandatory provisions;
• Choose the SCI name and verify its availability;
• Gather identity documents for all shareholders;
• Obtain declarations of non-conviction;
• Prepare proof of the registered office address;
• Draft the declaration of beneficial owners;
• Publish the legal notice in an authorized journal;
• Submit the registration application through the INPI one-stop shop;
• Obtain the SCI’s Kbis registration extract.

How to Buy, Rent, or Sell Property Through a Family SCI

Purchasing Property and Taking Out a Mortgage Through a Family SCI

When a family SCI purchases a building or vacation home, the property is acquired in the name of the company rather than in the personal name of the shareholders.

This structure centralizes ownership while distributing rights through the company shares held by each shareholder.

To finance the purchase, shareholders generally have two options.

Option 1: Mortgage Loan Taken Out by the SCI

The SCI itself obtains a mortgage loan.

Banks generally require shareholders to provide joint personal guarantees in order to secure the financing.

Option 2: Shareholder Current Accounts

Each shareholder borrows funds personally and then contributes them to the SCI through a shareholder current account.

This provides the company with the necessary cash to complete the acquisition.

To find the ideal property and secure your family SCI purchase project, a Capifrance real estate advisor can assist you from the property search through to the signing of the final deed.

Unfurnished and Furnished Rentals Through a Family SCI

A family SCI may rent out the property it owns, but the applicable tax treatment varies depending on the rental type.

Unfurnished Rentals

Unfurnished residential rentals remain compatible with the income tax (IR) regime.

Rental income is reported as property income by each shareholder in proportion to their ownership interest.

Furnished Rentals

Furnished rentals are considered commercial activities.

If income from furnished rentals exceeds 10% of the SCI’s total revenue, the tax authorities may reclassify the company and require it to switch to corporate taxation (IS).

This change results in:

• More extensive accounting obligations;
• Different tax treatment.

However, it also allows:

• Depreciation of the property;
• Depreciation of furniture and equipment.

Selling Property Held by a Family SCI

The sale of property owned by a family SCI requires a collective decision by the shareholders.

As a general rule, the articles of association provide that such a decision must be approved during a general meeting, often unanimously.

Once approval is obtained, the manager may sign:

• The preliminary sale agreement;
• The final deed of sale.

Capital Gains Taxation

The applicable capital gains tax regime depends on the SCI’s tax status.

SCI Subject to Income Tax (IR)

The capital gain is calculated according to the rules applicable to private individuals and is taxed in the hands of each shareholder proportionally to their ownership interest.

SCI Subject to Corporate Tax (IS)

The capital gain is taxed at the company level according to the rules applicable to businesses.

Before any sale, obtaining an accurate property valuation is essential. Capifrance advisors can provide a reliable valuation of your property, helping you determine an appropriate selling price and maximize your chances of success.

Creating a Family SCI with Children or Parents: Estate Planning and Wealth Transfer

One of the main advantages of a family SCI is its ability to facilitate the transfer of real estate assets while preserving family harmony. Whether created with children, parents, or siblings, the SCI is a highly effective estate planning tool.

Why Create a Family SCI with Your Children?

Creating a family SCI with your children allows you to gradually transfer real estate assets while retaining control over their management.

Instead of transferring a property directly, parents transfer shares in the SCI. This approach offers several advantages:

• Easier distribution among heirs;
• Avoidance of joint ownership disputes;
• Optimized inheritance taxation;
• Retention of management powers through the position of manager.

Parents can remain managers and continue making decisions regarding the property, even after part of the ownership has been transferred to their children.

This solution is particularly attractive when several children are involved, as it avoids the difficulties often associated with jointly owned property after a succession.

Share Donations and Tax Allowances

The family SCI is especially useful for organizing the gradual transfer of wealth through donations of shares.

In France, each parent may transfer up to €100,000 to each child every 15 years free of gift tax.

By donating SCI shares progressively, you can:

• Reduce future inheritance taxes;
• Spread the transfer over time;
• Maintain family control of the assets.

The value of the shares can sometimes benefit from a minority discount or an illiquidity discount, reducing the taxable value used for gift tax calculations.

Example

A property worth €600,000 is held through an SCI owned equally by two parents.

Each parent may donate shares worth €100,000 to each child every 15 years, significantly reducing the future taxable estate.

Split Ownership (Nue-Propriété and Usufruct)

Another highly effective strategy involves splitting ownership of SCI shares.

Parents Retain the Usufruct

Parents keep the usufruct of the shares, which allows them to:

• Receive rental income;
• Continue using the property;
• Maintain financial benefits.

Children Receive the Bare Ownership

Children receive the bare ownership (nue-propriété) of the shares.

Upon the death of the usufruct holders, full ownership is automatically consolidated without additional inheritance tax.

This arrangement allows for substantial tax savings while ensuring that parents retain control and income throughout their lifetime.

Creating a Family SCI with Parents or Siblings

A family SCI is not limited to parent-child relationships.

It may also be established between:

• Brothers and sisters;
• Parents and adult children;
• Grandparents and grandchildren;
• Any family members up to the fourth degree of kinship.

This structure is particularly useful for:

• Managing inherited property;
• Purchasing a second home together;
• Investing collectively in rental property.

The SCI creates a clear legal framework that defines everyone's rights and obligations and helps prevent future disputes.

Managing a Family SCI on a Daily Basis

The Role and Responsibilities of the Manager

The manager is the legal representative of the SCI.

They may be:

• One of the shareholders;
• Several co-managers;
• A third party appointed by the shareholders.

The manager's responsibilities typically include:

• Signing leases;
• Collecting rent;
• Paying expenses;
• Organizing general meetings;
• Representing the SCI before third parties.

The extent of the manager's powers is determined by the articles of association.

Certain major decisions often require shareholder approval, such as:

• Selling a property;
• Taking out significant loans;
• Modifying the articles of association.

General Meetings and Shareholder Decisions

SCI shareholders must meet regularly to approve major decisions.

An annual general meeting is generally held to:

• Approve the accounts;
• Review management;
• Decide on profit distribution.

The voting rules depend on the articles of association.

Decisions may require:

• A simple majority;
• A qualified majority;
• Unanimous approval.

Proper governance helps prevent conflicts and ensures smooth management of the family assets.

Accounting and Tax Obligations

SCI Subject to Income Tax (IR)

Accounting requirements remain relatively simple:

• Recording income and expenses;
• Preparing annual statements;
• Reporting property income.

SCI Subject to Corporate Tax (IS)

Accounting obligations are significantly more extensive:

• Full bookkeeping;
• Annual financial statements;
• Balance sheets;
• Profit and loss accounts.

Many SCI owners hire an accountant to ensure compliance with tax obligations and optimize the company's financial management.

Dissolving a Family SCI

When Can an SCI Be Dissolved?

Several events may lead to the dissolution of a family SCI:

• Achievement of the corporate purpose;
• Expiration of the company’s duration;
• Unanimous decision by shareholders;
• Judicial dissolution;
• Persistent disagreements among shareholders.

The Dissolution Procedure

The dissolution process generally follows several steps:

1. Decision to Dissolve

The shareholders vote to dissolve the company according to the rules set out in the articles of association.

2. Appointment of a Liquidator

A liquidator is appointed to:

• Settle debts;
• Recover receivables;
• Sell assets if necessary.

3. Liquidation Operations

The liquidator completes all operations required to wind up the company.

4. Distribution of Remaining Assets

Any remaining assets are distributed among shareholders according to their ownership interests.

5. Deregistration

The SCI is removed from the Trade and Companies Register.

Why Work with an Optimhome Advisor for Your Family SCI Project?

Whether you are planning to purchase a property through a family SCI, transfer assets to your children, invest in rental property, or sell a property held by an SCI, working with a real estate professional can make all the difference.

Optimhome advisors support you throughout every stage of your project:

• Property search;
• Property valuation;
• Purchase negotiations;
• Rental investment strategy;
• Resale planning;
• Wealth optimization guidance.

Thanks to their in-depth knowledge of local markets, Optimhome advisors help you identify opportunities, assess profitability, and make informed decisions tailored to your family's goals.

Contact an Optimhome advisor today to discuss your family SCI project and benefit from personalized support.

Frequently Asked Questions About Family SCI Companies

What Is the Main Advantage of a Family SCI?

The primary advantage is facilitating the management and transfer of family real estate assets while avoiding the complications of joint ownership.

Can a Family SCI Rent Furnished Property?

Yes, but excessive furnished rental activity may trigger corporate taxation (IS) if it becomes the SCI’s primary activity.

How Many Shareholders Are Required?

A minimum of two shareholders is required to create a family SCI.

Can Minors Be Shareholders?

Yes. Minor children may hold shares in a family SCI, although legal representatives must act on their behalf.

Is a Family SCI Suitable for a Second Home?

Yes. A family SCI is often used to purchase and manage vacation homes shared among several family members.

Is a Notary Required to Create a Family SCI?

No. A notary is not legally required, but their assistance is strongly recommended for complex family or estate planning situations.

What Happens Upon the Death of a Shareholder?

The shares become part of the deceased shareholder’s estate and are transferred according to inheritance rules or the provisions set out in the SCI's articles of association.

Can an SCI Be Created Without Contributing Property?

Yes. Shareholders may contribute cash only and use the SCI later to acquire real estate assets.

What Is the Difference Between a Family SCI and Joint Ownership?

Joint ownership is often temporary and can be terminated at any time by one co-owner. A family SCI creates a stable legal structure with clearly defined management rules.

Is a Family SCI Worth It in 2026?

For families owning or planning to acquire real estate together, the family SCI remains one of the most effective legal and tax tools available in 2026 for managing, protecting, and transferring property assets over the long term.

Author :

Frédéric Rémy – Director of Commercial Performance
A real estate professional for several years within the Capifrance network, I would like to share with you some essential advice to help you succeed in your real estate project with the support of our advisors.