⚠️ Article updated on 12 June 2026: the electricity conversion factor dropped from 2.3 to 1.9 on 1 January 2026 (order of 26 August 2025). Before deciding between works and transferring shares, check the 2026 rating of the property held by the SCI: an electrically heated home may have left class F or G without any works, via the free certificate from ADEME's DPE-Audit Observatory.
The family SCI (Société Civile Immobilière) is often presented as a flexible and tax-efficient vehicle for property transmission. It is — as long as the property it holds remains compliant with current regulations. But when the building owned by the SCI is rated F or G on the Energy Performance Certificate (DPE), the corporate structure provides no protection: rental bans apply to the property, not to the legal entity that owns it, and the partners find themselves facing obligations they had not anticipated.
Since 1 January 2025, a G-rated dwelling can no longer be the subject of a new lease. From 1 January 2028, this ban will extend to F-rated dwellings. These rules target the dwelling itself (CCH article L.173-1-1), regardless of the landlord's legal status — individual or SCI. The result: a family SCI that lets a G-rated flat is in breach if it signs a new lease, exactly like an individual owner.
What the SCI structure actually changes is the tax treatment of renovation works, the collective financing mechanism between partners, and the implications for the transmission of shares. It is these dimensions — and the common mistakes that accompany them — that this article examines in detail.
4.8 million dwellings rated F or G in France — a significant share is held through family SCIs, often without the partners having measured the consequences of the regulatory calendar on their investment.
Does the Rental Ban Apply to an SCI?
The regulatory calendar: a reminder
| Deadline | DPE rating affected | Effect |
|---|---|---|
| 1 January 2025 | G | Ban on signing a new lease |
| 1 January 2028 | F | Ban on signing a new lease |
| 1 January 2034 | E | Ban on signing a new lease |
Legal entity or individual: no difference
Article L.173-1-1 of the Code de la construction et de l'habitation defines the energy decency criterion by reference to the dwelling itself, not to the landlord's legal status. A family SCI is a landlord like any other: if the dwelling it owns is rated G, it can no longer enter into a new lease since 1 January 2025.
The most widespread misconception among family SCI partners is that the corporate structure offers some form of protection or additional time. It does not. The sanctions are identical: the tenant can demand that the dwelling be brought into compliance, apply to a judge for a rent reduction, or refuse to pay rent on a dwelling that fails to meet the decency standard.
⚠️ Warning: A family SCI that signs a lease on a G-rated dwelling after 1 January 2025 engages the liability of the company — and potentially that of the partners if the articles of association provide for unlimited and joint liability, which is the default for SCIs (Civil Code article 1857).
SCI Subject to Income Tax (IR) or Corporate Tax (IS): What the Tax Regime Changes for Works
SCI subject to income tax (IR) — default regime
The majority of family SCIs are subject to IR through fiscal transparency: each partner declares their share of rental income and deductible expenses in their own income tax return (property income category). Energy renovation works — insulation, heating system replacement, ventilation — are deductible from the SCI's rental income as actual expenses (régime réel).
When deductible expenses (including works) exceed the SCI's rental income, the resulting rental deficit (déficit foncier) can be set off against each partner's overall income, up to a limit of €10,700 per year per partner, in proportion to their rights in the SCI. Any excess is carried forward against rental income for the following 10 years.
SCI subject to corporate tax (IS)
When an SCI has opted for IS — or has been subject to it automatically due to a commercial activity (CGI article 206-2, for example furnished letting — see our guide on LMNP furnished rental, EPC obligations and taxation) — the tax treatment of works is radically different. Renovation works are no longer deductible from the partners' rental income: they are either amortised on the SCI's balance sheet (if classified as capital expenditure) or deducted as operating expenses (if classified as maintenance costs). The tax benefit no longer flows directly to the partners but to the company — in the form of a reduction in the IS-taxable result.
The major trade-off: on resale, the capital gain is calculated on the net book value (acquisition price less accumulated depreciation), which can generate a very high taxable gain — whereas an IR-regime SCI benefits from the individuals' capital gains regime with holding-period allowances (full exemption after 22 years for income tax and 30 years for social charges).
Key takeaway: The IR/IS choice is irreversible after the 5-year window following the IS election (CGI article 239). A family SCI that has elected IS cannot switch back to IR to benefit from the rental deficit on energy renovation works — unless it is still within the 5-year revocation window.
Rental Deficit: The Main Lever for IR-Regime SCIs
Mechanism and caps
The rental deficit (déficit foncier) is the primary tax lever for partners in IR-regime family SCIs who need to fund energy renovation works. The mechanism works as follows:
- The SCI collects rent (gross rental income).
- It deducts actual expenses: loan interest, insurance, management fees, property tax, and deductible works.
- If expenses exceed income, the rental deficit is distributed among partners in proportion to their rights.
- Each partner sets off their share of the deficit against their overall income, up to €10,700/year.
- Any excess is carried forward against rental income for the following 10 years.
Case study: 2-partner family SCI, renovating an F-rated flat
Profile: Family SCI owning a 65 m² 2-bed flat rated F, let at €900/month (€10,800/year). Two 50/50 partners (parents). Shared marginal tax rate: 30%. Planned energy renovation works: €20,000 incl. VAT (insulation + mechanical ventilation + windows). MaPrimeRénov' copropriété: not eligible (SCI). MaPrimeRénov' individual: €5,000 (subject to conditions). Net cost of works: €15,000.
Scenario A — IR-regime SCI (rental deficit)
| Item | Amount |
|---|---|
| Gross rental income | €10,800 |
| Running expenses (interest, management, property tax) | − €2,400 |
| Deductible works (net of MaPrimeRénov') | − €15,000 |
| Rental result | − €6,600 |
Rental deficit of €6,600, split 50/50: each partner sets off €3,300 against their overall income.
| Partner | Deficit set off | Marginal rate + social charges (30% + 17.2%) | Tax saving |
|---|---|---|---|
| Partner 1 (50%) | €3,300 | 47.2% | €1,558 |
| Partner 2 (50%) | €3,300 | 47.2% | €1,558 |
| Total tax saving | €3,116 |
True net cost of works after tax benefit: €15,000 − €3,116 = €11,884 for a rating gain from F to D and restored rental compliance.
Scenario B — IS-regime SCI (depreciation)
Under IS, the €15,000 of works are depreciated over 10 to 15 years on the SCI's balance sheet. The annual IS saving is modest: approximately €15,000 / 10 years × 15% (reduced SME IS rate) = €225/year, or €2,250 over 10 years. But on resale, the net book value of the property is reduced by accumulated depreciation, which increases the taxable capital gain.
| Criterion | IR-regime SCI | IS-regime SCI |
|---|---|---|
| Immediate tax saving (works) | €3,116 | €225/year |
| Total saving over 10 years | €3,116 (year 1) | €2,250 |
| Impact on capital gain at resale | Neutral (individuals' regime) | Gain increased by depreciation |
| Capital gains regime | Holding-period allowances | Corporate capital gain subject to IS |
Simulate the rental deficit for your SCI
The simulator calculates the rental deficit per partner, the actual tax saving and the true net cost of works based on your marginal tax rate.
MaPrimeRénov' and SCIs: What Is Accessible and What Is Not
MaPrimeRénov' individual
MaPrimeRénov' is accessible to SCIs under strict conditions:
- The dwelling must be the main residence of one of the partners or of a tenant (occupied at least 8 months per year).
- The application must be made in the SCI's name as landlord-owner.
- The income taken into account is that of the occupying household (tenant or occupying partner), not of the SCI's partners.
- The dwelling must be more than 15 years old (built more than 15 years before the application date).
In practice, eligibility is often more restrictive for SCIs than for individual owners, particularly because arrangements where the property is occupied free of charge by a partner without a formalised lease may be rejected by ANAH.
MaPrimeRénov' Copropriété
MaPrimeRénov' Copropriété funds works on the common parts of a condominium. If the SCI owns a unit in a condominium, it benefits from this scheme via the owners' association — without restriction linked to its legal entity status. Funding flows through the managing agent and is apportioned by share of common parts.
Éco-PTZ
The interest-free eco-loan (éco-PTZ) is accessible to SCIs that are not subject to IS. The application is made in the SCI's name, and the loan is granted to the company. The maximum amount is €50,000 for a comprehensive energy renovation.
What to check before commissioning works: Confirm your SCI's MaPrimeRénov' eligibility with ANAH before signing quotes. SCI application rejections account for a significant share of MaPrimeRénov' disputes — often because the application fails to properly document the dwelling's occupancy status.
Transmission of SCI Shares and the DPE Discount
The energy-inefficiency discount on share value
The transmission of SCI shares (gift or inheritance) is valued on the basis of the shares' market value on the date of transmission. This value depends directly on the value of the real estate held by the SCI — and therefore on the DPE rating of the properties.
An F- or G-rated dwelling carries a documented discount of 5 to 15% compared with an equivalent property rated C or D. This discount mechanically reduces the value of the SCI shares. For a transmission, this can constitute an unintended tax advantage: gift or inheritance tax is calculated on a reduced base — the same lever as for inheriting an energy-inefficient property held directly.
Case study: gift of shares before and after works
Profile: Family SCI owning a flat estimated at €300,000 at rating D. The property is currently rated F. Estimated DPE discount: 10%. Two parents gifting 100% of shares to two children.
| Scenario | Share value | Allowance (€100,000 × 2 parents × 2 children) | Taxable base | Estimated duty |
|---|---|---|---|---|
| Gift before works (rating F, 10% discount) | €270,000 | €400,000 | €0 | €0 |
| Gift after works (rating D, full value) | €300,000 | €400,000 | €0 | €0 |
In this example, the €100,000 allowance per child per parent (renewable every 15 years, CGI article 779 I) covers the entire value in both cases. The DPE discount advantage is only relevant when the share value exceeds the available allowances.
When the DPE discount becomes a real tax lever
Adjusted profile: SCI owning a rental building estimated at €800,000 at rating D. Currently rated F (12% discount). Two parents, two children.
| Scenario | Share value | Total allowance | Taxable base | Estimated duty (direct line scale) |
|---|---|---|---|---|
| Gift before works (rating F) | €704,000 | €400,000 | €304,000 | ~€49,000 |
| Gift after works (rating D) | €800,000 | €400,000 | €400,000 | ~€68,000 |
| Saving by gifting before works | ~€19,000 |
Key takeaway: For estates exceeding the allowances, the optimal sequence is: gift the shares before renovation works (low valuation), then carry out the works through the SCI (funded by the new partners or via an SCI loan). The children become owners of discounted shares, then benefit from the post-works revaluation without additional duty.
⚠️ Warning: This strategy is lawful but must be documented. The tax authority can reclassify a gift immediately followed by works as a disguised gift at full value if it considers the discount to be artificial. A reasonable interval between the gift and the works (6 to 12 months minimum) and justification via a legally binding DPE are recommended.
Simulate your SCI's tax strategy
Compare IR/IS scenarios, rental deficit and transmission to optimise your family SCI's tax position.
5 Common Mistakes by SCI Partners Facing DPE Obligations
Mistake 1 — Believing the SCI protects against the rental ban. The ban targets the dwelling, not the landlord. An SCI that lets a G-rated property after 1 January 2025 is in breach — with liability flowing through to the partners (Civil Code article 1857).
Mistake 2 — Commissioning works without checking the SCI's tax regime. Under IR, works generate a rental deficit that can be set off against each partner's overall income (up to €10,700/year). Under IS, they are depreciated on the balance sheet — modest immediate benefit and a negative impact on capital gains at resale. The choice of how to fund works depends on the tax regime, not the other way around.
Mistake 3 — Not checking MaPrimeRénov' eligibility before signing quotes. SCIs are eligible under conditions (main residence, dwelling age, occupying household's income). A poorly prepared application or an ANAH rejection after works have been commissioned eliminates a grant that can represent €5,000 to €15,000 of the total cost.
Mistake 4 — Gifting shares after renovation works. Energy renovation increases the share value. If a gift is planned, making it before the works allows you to benefit from the DPE discount on the gift tax base — a potential saving of several thousand euros for estates exceeding the allowances.
Mistake 5 — Not formalising partner current account advances to fund works. If a partner advances funds for works beyond their share, this advance must be formalised as a partner current account (compte courant d'associé) in the SCI's accounts. Without formalisation, the advance may be reclassified as a capital contribution — non-refundable — or simply lost in the event of a dispute between partners.
Conclusion
A family SCI holding an energy-inefficient property is subject to the same rental bans as an individual owner. The corporate structure protects against neither the DPE regulations nor the associated penalties. What it does change is the tax treatment of works — favourable under IR via the rental deficit, less advantageous under IS — and the possibilities for reduced-cost transmission by exploiting the DPE discount on the share value.
Partners in family SCIs holding F- or G-rated dwellings should act in a precise sequence: check the SCI's tax regime, confirm grant eligibility (MaPrimeRénov', éco-PTZ), plan the gift of shares before the works if applicable, then commission the renovation. Each step taken out of order can cost several thousand euros in lost tax benefits.
Simulate the rental deficit and tax saving for your SCI
Calculate the rental deficit per partner, the actual tax saving and the true net cost of energy renovation works.
Estimate the cost of works and available grants
The simulator calculates the estimated rating gain, MaPrimeRénov' grants and the remaining cost for your SCI.
