Family SCI 2026: complete guide to setting up the company

Setting up a family SCI (société civile immobilière, a French property holding company) is an increasingly popular estate planning solution for families wishing to optimise the management and transmission of their property assets. In light of recent tax developments and growing succession issues, this legal structure offers considerable advantages, which should be fully understood before embarking on it.

What is a family SCI?

Definition and operating principle

The family société civile immobilière is a particular form of SCI in which the partners are exclusively members of the same family. This structure makes it possible to hold one or more properties collectively while benefiting from simplified management and specific tax advantages.

The principle rests on the creation of a separate legal entity which becomes the owner of the properties. The family members hold shares in proportion to their contributions, giving them rights over the company's assets.

The members concerned by the family SCI

The notion of "family" for the purposes of the SCI includes:

• Spouses and civil partners (PACS)
• Ascendants and descendants
• Brothers and sisters
• Spouses of descendants
• In certain cases, uncles, aunts, nephews and nieces

This broad definition allows great flexibility in the make-up of the company and facilitates multigenerational estate planning projects.

The advantages of setting up a family SCI

Optimising the transmission of assets

The family SCI excels in organising the transmission of assets. It makes it possible to separate economic ownership (holding of the shares) from the operational management of the property. This separation greatly facilitates gifts and successions.

Parents can thus transmit shares to their children gradually, while retaining control of the company through the articles of association. This transmission can take place at significant discounts to the market value of the properties, thereby optimising gift duties. The legal status of the family SCI and its advantages for transmission are detailed in our article on the steps involved.

Easier management of the property assets

The société civile immobilière considerably simplifies the management of assets made up of several properties or held by several people. A single manager (gérant) takes the day-to-day decisions, avoiding the deadlocks associated with ordinary joint ownership (indivision).

This structure also avoids the constraints of statutory joint ownership, in particular:

• The unanimous agreement required for acts of disposal
• The right to demand partition at any time
• Management difficulties in the event of disagreement

Flexibility in family organisation

The articles of association of the SCI offer great contractual freedom to adapt its operation to the specific needs of each family. It is possible to provide for approval clauses (clauses d'agrément), pre-emption rights, or special terms for the transfer of shares.

The essential steps in setting up a family SCI

Preparing the project and the articles of association

Drafting the articles of association is the fundamental step in setting up an SCI. The document must be adapted to the family's asset objectives and provide for all possible future situations. The steps in setting up a société civile immobilière, from the articles of association to registration, are covered in our guide to setting up.

The articles of association must necessarily contain:

• The company name
• The corporate purpose (acquisition, construction, administration of real property)
• The registered office
• The term of the company (99 years maximum)
• The amount of the share capital
• The allocation of shares between partners
• The rules on management
• The terms for transfer of shares

Constitution of the share capital and contributions

The share capital of a family SCI may be made up of different types of contributions:

Cash contributions are sums of money paid in by the partners. They are the simplest solution and allow a precise allocation of the shares.

Contributions in kind mainly concern existing properties. In that case, a precise valuation must be carried out, often by a property expert, to determine the value of the contribution and the corresponding allocation of shares.

Contributions of skills (apports en industrie), although rarer, may consist in making particular skills available (management, building works, etc.).

Administrative formalities and registration

Once the articles of association have been drafted and signed, several administrative steps are necessary:

Legal publicity in a legal notices newspaper of the département of the registered office is mandatory. The notice must state the essential information about the company.

Filing the registration file with the registry of the commercial court (greffe du tribunal de commerce) includes:

• The signed articles of association
• The manager's declaration of no criminal conviction
• The certificate of publication of the legal notice
• The declaration of beneficial owners
• The duly completed M0 form

Tax regime and obligations of the family SCI

Taxation of rental income

By default, the family SCI falls under the tax transparency regime. Income and expenses are allocated between the partners in proportion to their shares, and each partner declares them in his or her personal income tax return.

Rental income is taxed in the category of property income (revenus fonciers), with the possibility of opting for the micro-foncier regime (subject to conditions) or the actual regime allowing deduction of all expenses.

Option for corporate income tax

The société civile immobilière may opt to be subject to corporate income tax. This option, which is irrevocable, has advantages in certain situations:

• Building up reserves at the reduced rate of 15% (subject to conditions)
• Deduction of financial charges without limit
• Deductible depreciation of buildings

However, this option results in capital gains on disposal being taxed at the level of the company, followed by a second layer of tax on distribution to the partners.

Accounting and reporting obligations

Even under tax transparency, the SCI must keep simplified accounts and file a return of results each year. The obligations include:

• Keeping a journal of receipts and expenditure
• Drawing up an annual inventory
• Filing the 2072 return before 15 May

Management and operation of the family SCI

Appointment and powers of the manager

The manager of the family SCI has extensive powers for the day-to-day administration of the company. The manager may be appointed by the articles of association or by a collective decision of the partners.

The manager's powers include:

• Signing leases and renewing them
• Collecting rents and paying charges
• Carrying out maintenance and improvement works
• Representing the company in dealings with third parties

For important decisions (sale of a property, amendment of the articles of association), the authorisation of the partners' meeting remains necessary, in accordance with the terms laid down in the articles of association. On the remedies open to partners where the manager exceeds his or her powers, see our article on sanctions against an abusive SCI manager.

General meetings and decision-making

Collective decisions of the partners are taken at an ordinary or extraordinary general meeting depending on their importance. The articles of association define the terms of notice of meeting, the quorums required and the majorities needed.

Holding an annual meeting to approve the accounts remains mandatory, even within a family, in order to approve the manager's management and future policy.

Transfer and transmission of shares

Shares in a family SCI cannot be transferred freely. The articles of association generally provide for approval clauses which make any transfer subject to the prior agreement of the partners.

These restrictions protect the family character of the company and prevent the entry of unwanted partners. They also make it possible to organise pre-emption mechanisms in favour of the other members of the family.

Recent developments and outlook for 2026

Impact of tax reforms

Recent developments in tax law directly affect the attractiveness of the family SCI. The reform of the IFI (Impôt sur la Fortune Immobilière, real estate wealth tax) maintains significant advantages for properties held through an SCI, in particular as regards the valuation of the shares.

Changes to the regime for gifts and successions continue to favour transmission through corporate structures, particularly for larger estates.

Adapting to new regulatory constraints

The obligations to declare beneficial owners, reinforced by the European anti-money laundering directives, call for particular vigilance in the management of family SCIs.

The increasing digitalisation of administrative formalities simplifies certain procedures while requiring traditional practices to be adapted.

Points of vigilance and pitfalls to avoid

Common errors in drafting the articles of association

Underestimating the importance of the articles of association is the most frequent error. Articles that are too generic or unsuited to the family's objectives can cause significant difficulties in the operation of the company.

The terms of transmission of the shares, the manager's powers and the decision-making procedures should be set out precisely to avoid future deadlocks.

Managing family conflicts

Even within a united family, differences may arise concerning property strategy or the management of the properties. The articles of association should anticipate such situations by providing for conflict resolution mechanisms.

The involvement of a mediator or an independent expert may usefully be provided for in the articles of association to resolve deadlock situations.

Setting up a family SCI is a powerful estate planning tool which requires a methodical approach and in-depth legal knowledge. The tax, succession and management issues are complex enough to justify being supported by an experienced professional. Properly set up and managed, this structure will be a major asset for optimising and transmitting your family assets over several generations.