SCI Company Guide: French vs. Monégasque SCIs
The Société Civile Immobilière (SCI) is a specific type of French civil real estate company structure. Widely used in France and Monaco, it is designed for owning and managing real estate assets. An SCI, which is structured as a non-commercial company, allows members of the same family or groups of individuals to collectively hold property, providing flexibility in the process of transferring assets and managing inheritance. This structure is popular for its legal and tax benefits, particularly in estate structuring and succession planning.
To help you understand why SCIs are preferred by families seeking to manage and transfer real estate efficiently, we will delve into more detail about SCIs, including how they work, their benefits and the differences between French and Monégasque versions.
Facts about SCI
- The company must operate in a strictly civil manner, excluding any commercial activities, such as acquiring, managing, leasing or transferring unfurnished properties or transferring real estate.
- There should be a minimum of two shareholders (individuals or legal entities)
- Members have unlimited liability for outstanding debts, relative to their shareholding, once all SCI assets have been exhausted.
- A manager is responsible for handling the day-to-day administration and representation of the company.
- The share capital requirement can be minimal, starting at €1, and contributions may be made in either monetary or in-kind form, such as property.
Setting up an SCI company
Step 1: Draft the Articles of Association (Statuts) – This is the foundational document that defines the company name, registered office, civil purpose, share capital, management rules, decision-making process and share transfers. It’s strongly advised to have a notary or a lawyer draft these documents.
Step 2: Deposit the Share Capital – The members make their contributions (cash or in-kind assets, such as property) to form the share capital.
Step 3: Publish a Legal Notice – A notice of the SCI’s formation must be published in an authorised Journal d’Annonces Légales (JAL) that circulates within the location of the registered office.
Step 4: Register the SCI – The registration application and the required documents must be submitted to the relevant commercial registry.
Step 5: Obtain the Kbis Extract – Once the company is registered, it will receive its official registration certificate (Kbis extract), including its identification numbers to confirm its legal existence.
It is highly recommended to consult with a notary or a legal expert specialising in SCI setup in France, as the formation and regulations of an SCI are unique to French law. This ensures that the company is properly set up to achieve your specific objectives, such as family inheritance, and that all tax and legal requirements are met.
French SCI vs. Monégasque SCI
Although the fundamental structure is similar, an SCI registered in France differs significantly from an SCI registered in Monaco in terms of key characteristics and tax implications. The French SCI is the most common structure for shared property ownership and estate planning in France. Meanwhile, Monaco-based civil companies known as Société Civile Particulière (SCP) or Monégasque SCIs are preferred by Monaco residents to hold property in Monaco or France, mainly due to favourable tax treatment and stronger privacy protections.
| French SCI | Monégasque SCI | |
| Purpose | Owns and manages real estate, primarily in France. | Owns and manages real estate in Monaco or France. |
| Registered Office | Must be in France. | Must be in Monaco. |
| Confidentiality | Shareholder/Manager identity is publicly available via the RCS (Registre du Commerce et des Sociétés). | Shareholder identity is not publicly disclosed, offering a higher degree of confidentiality compared to French SCIs. |
| Inheritance Tax (Succession) | Shares are subject to French inheritance tax, often at high rates. | Under the France-Monaco Double Tax Treaty on Succession, the shares of a Monégasque SCI that owns French property are generally subject to Monaco’s 0% inheritance rate for descendants, if the deceased was a Monaco resident for at least five years. |
| French 3% Annual Tax | Subject to 3% Annual Tax on the market value of its French property; must meet a disclosure requirement to be exempted from the tax. | Usually subject to a 3% annual tax on the market value of the French property it owns; it can be exempt if annual filing or undertaking is provided. |
| Tax Regime | Usually fiscally transparent (taxed under IR – Impôt sur le Revenu); can opt for Corporate Tax (IS – Impôt sur les Sociétés). | Generally exempt from corporate tax in Monaco. |
Choosing between a French SCI and a Monégasque SCI depends on the objectives, such as succession planning, confidentiality or tax efficiency. Before deciding, it’s best to consult a cross-border legal and tax advisor with expertise in both French and Monégasque law before setting up the company.
How Bolder can help
In luxury real estate markets such as France and Monaco, selecting the proper holding structure — whether a Monégasque SCI or a French SCI — is a complex decision that affects your tax burden, flexibility and long-term family legacy, and can significantly impact your wealth across generations.
Our specialists at Bolder work closely with you to ensure your structure aligns perfectly with your financial, tax and legacy objectives. Contact our Monaco team to know more about the SCI company and how to get started: Monaco – Bolder
Bolder Group does not provide financial, tax or legal advice and the information contained herein is meant for general information purposes only. We strongly recommend that before acting on any of the information contained herein, readers should consult with their professional advisers. The Bolder Group accepts no liability for any errors or omissions in the information, or the consequences resulting from any action taken by a reader based on the information provided herein.
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