An introduction to the Société civile de placement immobilier (SCPI) in 2023

Eddie Sammon Investments

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 Pinel: tax advantages for 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 adds energy efficiency criteria to the properties.
  • 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: tax advantages for investment into properties requiring major renovation work.

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.

Can you borrow to invest into an SCPI?

Yes, most banks offer loans for investment into SCPI. However, the criteria and loans are often more restrictive than for loans into direct property investments.

What are the main risks?

Returns are not guaranteed, and both the income and the capital invested into the fund is at risk, as with any property investment. Tax rules can also change. 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.

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.