SCI accounting

Good accounting is what keeps an SCI (société civile immobilière, a French property-holding company) running properly. It tracks how the property is actually performing, keeps you inside your legal and tax obligations, and gives you the numbers you need before making a decision. At GME Audit, we walk you through the essentials of SCI accounting so your structure stays well managed and fully compliant.

​​

​

​

​

SCI accounting follows the same principles as any other French company. It rests on accounting standards and legal obligations, chiefly bookkeeping, tax returns and the production of annual financial statements.

​

​

​

1. General principles of SCI accounting

• What your SCI must do depends above all on its tax regime. There are two main options: the partnership regime (IR, French personal income tax) and corporation tax (IS, impôt sur les sociétés).

• SCI taxed under IR: rental income is taxed directly in the hands of the partners, in proportion to their shares. Accounting is lighter, often limited to cash-basis bookkeeping.

​

​

​

SCI taxed under IS: the SCI is taxed on its profits at the corporation tax rate. Accounting must be kept far more rigorously, with a balance sheet, a profit and loss account and a full tax return package (liasse fiscale).

• 2. The SCI's accounting obligations

• Keeping accounting books is a legal obligation for every SCI. It covers:

• The day book (livre-journal): records every accounting transaction, purchases, sales, receipts and payments, in chronological order.

​​

​

​

The general ledger (grand livre): brings together all the accounts used by the SCI, sorted by account number.

• The inventory book (livre d'inventaire): lists all the SCI's assets and liabilities once a year.

• 3. Keeping the SCI's accounting books

• Every SCI must produce annual financial statements, comprising:

​​

​

​

The balance sheet: sets out the assets (what the SCI owns) and liabilities (what the SCI owes) at the year end.

• The profit and loss account: shows how the SCI performed over the year in terms of income and expenses, and gives the profit or loss.

• The notes to the accounts: provide the additional information needed to make sense of the figures.

​​

​

​

4. The SCI's financial statements

Tax treatment depends on the regime you are under:

​

SCI under IR: partners declare rental income as property income (revenus fonciers). Works, loan interest and other costs are deductible, subject to conditions.