Advice: How to Optimize Your Real Estate Wealth Transfer

Anticipating Real Estate Wealth Transfer Through Dismemberment

There are two main solutions to anticipate and optimize the transfer of real estate wealth:

• the donation of dismembered property, and

• the creation of a Real Estate Civil Company (SCI).

Property dismemberment separates ownership into bare ownership (nue-propriété) and usufruct.
Donating the bare ownership offers three major advantages:

1. The donor keeps the usufruct, maintaining the right to live in or rent out the property.

2. The donor benefits from substantial tax allowances:

   • €100,000 every 15 years between parents and children,

   • €31,865 between grandparents and grandchildren.

3. The heirs automatically recover full ownership upon the donor’s death, without tax or fees.

👉 From a tax perspective, the taxable value of the donation depends on the donor’s age: the younger the donor, the lower the taxable base.
For example, at age 60, donation taxes apply to only 50% of the property’s value.

The Real Estate Civil Company (SCI): A Flexible and Effective Transfer Tool

“The SCI allows for the gradual and controlled transfer of real estate assets.”

While less suited for a primary residence, the Real Estate Civil Company (SCI) is particularly effective for transferring secondary residences or rental investments.

Once the SCI is created and the properties are purchased, the company shares can be transferred gradually, maximizing the use of tax allowances on donations down to the euro.

Another key advantage: maintaining control over your assets.
The SCI’s articles of association can specify that the donor remains manager until death, retaining authority over key decisions such as sales, guarantees, or renovation work.

The statutes should be carefully drafted with the help of a notary or legal expert, to align with your wealth transfer goals.
For even greater optimization, donors can transfer only the bare ownership of SCI shares, reducing inheritance taxes further.