An introduction to the Société civile de placement immobilier (SCPI) in 2025

What is an SCPI in France?

An SCPI is a form of property investment fund in France, which enables you to invest into a diverse portfolio of properties for as little as 150 euros. There are different types of SCPI.

What are the main types of SCPI?

There are two main kinds of SCPI:

Commercial property SCPI (SCPI d’entreprise)
Residential property SCPI (SCPI d’habitation)

Residential property SCPIs are often known as an “SCPI fiscales” due to the associated tax advantages, but their returns may be lower than commercial property SCPIs.

What are the tax advantages of an SCPI fiscale?

This depends on the type of SCPI fiscale as there are different tax reliefs for different kinds of property investment, the main ones are as follows:

SCPI Denormandie: tax advantages for renovation of existing properties, usually located in town centres. These properties should then be let to low to middle income tenants.
SCPI Malraux: tax advantages for rental properties classed as historic. The properties must be renovated and rented out within 12 months of the renovation work.
SCPI de deficit foncier or de rénovation: tax advantages for investment into properties requiring renovation work, allowing you to reduce your income by up to €10,700 per year.
SCPI Pinel and Pinel+ (tax advantages no longer available in 2025): investment into newly built or renovated apartments in areas of housing market tension and rented low to moderate income tenants at capped prices. Pinel+ was introduced in 2023 which added energy efficiency criteria to the properties.

Note that the same tax advantages can often be obtained from direct property investments, rather than investing via a fund such as an SCPI. You can also invest into an SCPI via other tax efficient investment products, such as an assurance vie.

Feel free to contact an advisor at AISA International if you are interested in learning more about the above tax regimes as a detailed breakdown of each one is beyond the scope of this introductory article. Alternatively, you can visit one of the links at the end of this blog (in French).

What are the charges?

The main charges to the investor are as follows:

Entry fees (frais de souscription) of between 5% and 12% of your initial investment.
Management fees (frais de gestion) which range from approximately 6% to 10% of the annual rental income.
Exit fees (frais de cession) for some kinds of SCPI.

Note that some of these fees may be used to pay commission to your financial adviser. Any amount of commission paid to AISA International will be agreed upfront with you as we are completely transparent on any remuneration that we will receive.

What is the difference between an SCPI à capital fixe and à capital variable

An SCPI à capital fixe is a close-ended investment fund, this means that the fund cannot create or remove parts when investors wish to buy and sell, it’s price is determined by supply and demand rather than by the net value of the assets in the fund. If you want to sell, you have to sell in the secondary market, to another investor, although they usually take longer to sell than traditional investment funds and shares, which can usually be sold immediately.

An SCPI à capital variable is the most common type of SCPI and is an open-ended investment fund which means that the price is determined by the net assets of the fund and the number of parts. If you wish to sell, you can either sell back to the investment fund, or on the secondary market to another investor. However, the fund is not obliged to buy-back your parts at any moment and you may have to find your own buyer.

Can you borrow to invest into an SCPI?

Yes, most banks offer loans for investment into SCPI. However, their interest rates are usually higher than for traditional mortgages.

What are the main risks?

Returns are not guaranteed, and both the income and the capital of the fund is at risk, as with any property investment. If you borrow to invest then your income from your SCPI might not be sufficient to cover the cost of your loan and the capital you receive on sale may be less than your loan amount.

You will often find it more difficult to sell your SCPI compared with other types of investment funds due to the more illiquid nature of property investments and the conditions of your purchase contract.

The charges for SCPI investments can be very significant. Investors should make sure that they have studied all of the charges, for purchase, management and sale, before investing. These costs should be compared with other types of investment funds charges and even with direct investment into property.

Useful links:

The views expressed in this article are not to be construed as personal advice. Therefore, you should contact a qualified, and ideally, regulated adviser in order to obtain up-to-date personal advice with regard to your own personal circumstances. Consequently, if you do not, then you are acting under your own authority and deemed “execution only”. Additionally, the author does not accept any liability for people acting without personalised advice, who base a decision on views expressed in this generic article. Importantly, this article is dated and is based on legislation as of the date. It should be noted that legislation changes, but articles are rarely updated. Sometimes a new article is written; so, please check for later articles. Additionally, check for changes in legislation on official government websites. Finally, this article should not be relied on in isolation.

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