SCI at the IRS, SCI at the IS or direct detention: how to choose?

Direct retention, SCI to the IRS or SCI to the IS: these three schemes may be suitable for real estate investment, but they do not produce the same taxation, flexibility or heritage result over time.

The right choice depends less on the property itself than on what the investor wants to do with it: collecting income, capitalizing, transmitting, reinvesting or reselling over time.

Compare structures across multiple horizons

Direct detention can offer simplicity and readability. The ICS at the IR can respond to a family or heritage logic. SCI at IS can, in some projects, promote capitalization and significantly change taxation during the holding period.

But an advantage over current income can be offset by a higher cost at disposal.

This is why the firm never bases its argument solely on the year's tax: it compares scenarios over the foreseeable duration of the investment.

Encrypt before structuring

The firm's expertise consists in modeling the effects of each option taking into account funding, expected revenues, holding time, cash requirements, exit taxation and transmission objectives.

This comparison helps to highlight the differences in net value between several architectures and avoids the possibility that a seemingly advantageous choice in the short term will permanently penalise the heritage.

Master Edouard Pruvost specializes in consulting on real estate and heritage tax strategy. The firm intervenes to compare the different modes of detention, quantify their consequences and identify the most efficient architecture in relation to your objectives. To have your project analysed and to benefit from tax strategy advice, contact the firm.