Buying via SCI or Own Name: Which Strategy for Luxury Property in Paris?

Acquiring a reception apartment in the 8th arrondissement or a private mansion in Neuilly-sur-Seine represents a major patrimonial investment. Beyond the location and the rarity of the property, the legal structuring of the purchase is the main lever to secure your assets and anticipate their transmission. At Fairway Luxury Real Estate, we guide you through this crucial arbitration: should you buy in your own name or set up a Real Estate Civil Company (SCI)?

1. Buying in Own Name: Simplicity and Flexibility

Buying in your own name means you acquire the property as a physical person. This is the most common form, especially for a primary residence.

The Benefits of Owning in Your Own Name

• Administrative Simplicity: No legal structure to create, no bylaws to draft, and no annual corporate accounting to maintain.
• Reduced Costs: You save on company formation fees (legal notices, registration with the Commercial Court) and management costs (accountant).
• Individual Taxation: You benefit by right from the tax allowance for the holding period on real estate capital gains. According to Article 150 VC of the French General Tax Code, the exemption from capital gains tax is total after 22 years of ownership (30 years for social levies).

The Trap of "Indivision" (Joint Ownership)

As soon as you buy with others (unmarried partners, PACS partners, friends), you automatically fall under the indivision regime. According to Article 815 of the French Civil Code, "no one can be compelled to remain in indivision." This means that at any time, a joint owner can trigger the sale of the property to recover their share, which can paralyze a family wealth strategy in case of disagreement.

2. The SCI: A Tailor-Made Management Tool

The Société Civile Immobilière (SCI) is a legal entity created to hold one or more properties. It requires at least two partners (physical or legal entities).

Protection Against Management Deadlocks

Unlike joint ownership, an SCI allows you to separate capital ownership from decision-making power. The bylaws (statutes) determine the rules:

• Appointment of a Manager: A single partner can be appointed as manager to make day-to-day decisions.
• Decision Majority: You can stipulate that the sale of the property requires a qualified majority (e.g., 66%) rather than unanimity, preventing a minority partner from blocking a transaction.

Optimizing Estate Planning (Succession)

The SCI is the tool of excellence for transmitting prestige assets in Paris. Instead of transmitting an indivisible building, you transmit shares.

Expert Advice: You can gift the "bare ownership" (nue-propriété) of the shares to your children while retaining the "usufruct" (usufruit) — and thus the use or income of the property. This significantly reduces the taxable base for gift taxes.

3. Comparison of Costs and Obligations in 2025

Choosing an SCI imposes a management rigor that owning in one's own name does not. Here are the official elements to consider for 2025:

4. The Final Verdict: How to Choose?

There is no universal solution, but clear trends based on your profile:

• Prefer Own Name if you are buying alone, if it is your primary residence, and if you seek maximum simplicity without immediate transmission goals.
• Prefer an SCI if you are buying with others, if you want to protect a partner, or if you have significant assets (over €1.3M subject to IFI/Wealth Tax) that you wish to gradually transmit to the next generation.

Important Note: An SCI can opt for Income Tax (IR) or Corporate Tax (IS). This fiscal choice will be the subject of our next detailed article.