What is an SCI?
SCI: An acronym that may seem a bit barbaric.
However, the legal structure is a very practical form of company when you want to buy for several people.
Let’s tell you why!
What is an SCI?
SCI stands for Société Civile Immobilière.
It is a legal structure made up of at least two people that allows the partners to own property indirectly (i.e. not on their own).
Why an SCI?
An SCI has many advantages, including:
- Reduced acquisition costs
- The possibility of owning a property together
- Great flexibility in the management and resale of shares: each partner only has power over his or her own shares (unlike a joint ownership arrangement where the rights of each joint owner apply to the entire property)
- Equitable distribution of debts and profits
- Simplification of the succession
What tax should the SCI pay?
There are 2 possible scenarios:
Either the partners (this is often the case for family-owned legal structures, for example) receive the legal structure income and declare it. In this case, the legal structure is subject to income tax.
Or the partners rent out their property as furnished accommodation, which is considered a commercial activity. In this case, the legal structure will be subject to corporation tax.
Why did Altacasa choose this model?
This is the model chosen by Altacasa to form a co-ownership around its prestige properties. This formula has the great advantage of allowing each of the owners to be 100% independent of the others, and therefore to be able to sell their share whenever they feel like it.