French Real Estate Funds (SCPI & OPCI): Invest in Property the Smart Way

OPCI – Flexibility and Tax Efficiency

An OPCI (Organisme de Placement Collectif Immobilier) is a hybrid investment vehicle composed of 60 to 90% real estate assets (offices, retail, logistics, managed residences) and 10 to 40% liquid assets such as stocks, bonds, or cash equivalents.

This structure provides greater liquidity and flexibility than traditional real estate investments. OPCIs are often included within life insurance policies, offering the advantage of tax-efficient returns:

• Flat tax rate (30% “Prélèvement Forfaitaire Unique”),

• Tax allowance after eight years (€4,600 for single investors, €9,200 for couples).

💡 Another key benefit: accessible entry levels, with monthly contributions starting from as little as €10 to €100, and subscription fees limited to 4–7%.
Average performance currently stands at around 4.5% gross, excluding management fees.

SCPI – Regular Income and Long-Term Tax Advantages

The SCPI (Société Civile de Placement Immobilier) remains the most popular vehicle for steady real estate income and long-term wealth building.
With an average annual yield of around 4.5%, SCPIs are ideal for investors seeking additional income, particularly as part of retirement planning.

Unlike OPCIs, SCPI shares can be financed through a mortgage, providing a leverage effect that enhances returns and optimizes taxation.
Loan interest can be deducted from rental income, and any resulting property deficit may reduce taxable income up to €10,700 per year, offering a significant tax optimization opportunity.

A Growing and Diversified Market

Once considered a niche product, SCPIs have become a mainstream real estate investment, with nearly 100 active management companies in France.
Investors can purchase SCPI shares directly or through a life insurance policy — though the latter offers a smaller selection.

Entry prices start at a few hundred euros, allowing investors to diversify easily across sectors such as offices, healthcare, logistics, and retail.

👉 There are also tax-efficient SCPIs, linked to specific fiscal regimes like Malraux, Déficit Foncier, or Scellier, which enable investors to reduce income tax while building long-term wealth.