Taxation of SCPI: How Are Rental Incomes Taxed?

Introduction

Investing in SCPI (Société Civile de Placement Immobilier) is an attractive solution to diversify one’s assets and generate regular income from real estate. However, like any investment, the income received is subject to specific taxation that must be well understood to optimize net returns. In this article, we detail the taxation of SCPIs, particularly how the rental income generated by these investments is taxed.

What is an SCPI and what income do they generate?

SCPIs are collective investment vehicles allowing indirect investment in a diversified real estate portfolio (offices, shops, housing, etc.). By purchasing SCPI shares, the investor receives income from the rents collected by the company. This income is then distributed to shareholders in the form of dividends, commonly called rental income. These amounts constitute taxable income under the category of rental income for the investor.

The nature of rental income from SCPIs

The income distributed by SCPIs is considered rental income under French taxation. Indeed, although the investor does not directly own real estate, they receive a share of the rents collected by the SCPI, which is treated as rental income. This income must therefore be declared in the “rental income” category of the annual income tax return (form 2042 and 2044 depending on the situation).

Taxation of rental income: actual regime or micro-rental?

Rental income from SCPIs can be taxed under two main regimes:

• The micro-rental regime: accessible if the gross amount of annual rental income is less than €15,000. This regime allows a flat-rate deduction of 30% on gross income, without the possibility of