Are you in a relationship or a family and considering purchasing your primary residence? Once reserved for large real estate management projects, the SCI is now accessible to anyone looking to optimize their assets while benefiting from tax advantages. Specifically, the SCI is a legal entity distinct from its partners, who each hold shares according to their initial contribution. The main advantage of an SCI lies in the simplicity of asset management.
For example, parents can set up an SCI to transfer a house to their children. Instead of directly bequeathing the property, they gradually transfer their shares, which avoids the complications of joint ownership.
The creation of an SCI requires at least two partners. These can be family members, friends, or business partners. The articles of the SCI must specify the distribution of shares, decision-making procedures, and management rules. If the partners already own a property they wish to include in an SCI, they can make an in-kind contribution.
This operation involves transferring ownership of the property to the SCI in exchange for shares. The partners must assess the value of the contributed property, as this real estate valuation will be included in the articles and have tax implications.
For those who do not yet own a primary residence, it is possible to create an SCI before acquiring the property. In this scenario, the SCI is created from scratch, the articles are drafted and registered, and then the company borrows the funds needed to purchase the property.
