Investing in SCPIs: How to Generate Passive Real Estate Income with Raizers?
Investing in an SCPI (real estate investment trust) allows you to invest indirectly in rental real estate and earn additional income. Here’s what you need to know.
The management company is responsible for collecting funds from investors, purchasing rental properties, and managing them. It then pays out dividends based on the number of shares you hold, minus a fixed annual management fee.
You can choose to invest in an SCPI focused on income, tax benefits, or capital gains. These three types have different objectives.
Investing in real estate through an SCPI can be a way to diversify your investments and spread risk. Thanks to its low minimum investment, it is designed to be accessible to a wide audience. However, it also carries the risk of capital loss and offers no guaranteed return. It can also take a long time to sell the shares.
Investing in SCPIs: Features and How They Work
What is an SCPI? What is its purpose?
An SCPI, a company not listed on the stock exchange, is a type of collective investment vehicle (OPC). It allows investors to invest indirectly in rental real estate.
Specifically, the SCPI is responsible for:
to raise funds from investors (individuals or professionals);
to purchase real estate for rental purposes;
to manage them (repairs as needed, rental management, collection and distribution of rent).
In exchange for these services, it charges an initial management fee, payable upon the purchase of shares, and an annual management fee each year.
The Different Types of SCPI
There are three types of SCPI, each with its own characteristics and strategies, namely:
the yield-oriented SCPI, the most common type, whose objective is to generate rental income;
the tax-advantaged SCPI, also known as a residential SCPI, which offers benefits under a tax program;
A capital appreciation or capitalization SCPI, whose strategy is to generate maximum capital appreciation upon the resale of a property.
The Different Types of SCPIs and Their Characteristics
How SCPI Investments Work
When you invest in an SCPI, you purchase shares and become a partner.
Depending on the type of SCPI you choose (income-focused, capital appreciation, tax-advantaged, etc.), you:
receive property income, known as dividends, based on the number of shares you hold, paid monthly or quarterly (yield-oriented SCPI);
earn property income and take advantage of tax optimization, such as a tax reduction or deduction (tax-efficient SCPI);
generate capital gains when the property is sold (SCPI focused on capital appreciation).
What are the main benefits and risks of investing in an SCPI?
Like any investment, buying shares in an SCPI involves both benefits and risks. It’s best to understand them before you get started so you can determine whether this investment vehicle fully meets your expectations and aligns with your wealth management strategy.
What are the benefits of purchasing SCPI shares?
Buying shares in an SCPI allows you to:
To invest in real estate without buying or managing the property directly (no renovations, no need to find tenants, no property taxes to pay…);
To diversify your investments and your assets (it is strongly recommended that you not invest all your savings in a single investment vehicle to avoid losing everything);
To have additional income, a tax benefit, or a capital gain;
To spread the risk (it is pooled and distributed among all partners and all assets held by the management organization).
Furthermore, investing in SCPIs is accessible to a broad audience due to the minimal paperwork involved and the low minimum investment (an average of €100), even though management companies often require a minimum number of shares. It can also be done in various ways (with cash, on credit, through a life insurance policy, etc.).
What risks should you consider when investing in SCPIs?
This type of investment, of course, involves certain risks.
The returns and principal of an SCPI are not guaranteed, which means you cannot predict the amount of dividends (or capital gains) you will receive, nor can you be certain of recovering your investment when you sell.
This investment is relatively illiquid, meaning it may take some time to sell your SCPI shares and find a buyer. According to economie.gouv.fr, the time it takes to sell can range from two to six months, depending on the type of SCPI and market conditions.
Fees (such as subscription, management, and redemption fees) should also be taken into account, as they affect the investment’s performance.
The Benefits and Risks of Investing in an SCPI
To generate income, a tax benefit, or capital gains
Affordable admission ticket
Risk of Capital Loss and Unguaranteed Returns
Investment with low liquidity
Entry, management, and exit fees
What kind of return can you expect from an investment in an SCPI?
The return on an investment in an SCPI takes the form ofreal estate income or dividends, paid monthly or quarterly. It depends on the rent collected by the management company and is proportional to the number of shares held.
Good to Know
Management companies may impose a waiting period (typically ranging from three to six months), meaning a period during which the partner does not receive dividends.
The latest press release from ASPIM (the French Association of Real Estate Investment Companies), published on February 10, 2026, provides an overview of the capital raised and the performance of retail real estate funds in 2025. It appears that:
Diversified SCPIs accounted for 65% of gross inflows in 2025, ahead of SCPIs focused primarily on office properties (24%), healthcare and education (4%), logistics and commercial spaces (3%), retail (2%), and residential (1%);
the market-capitalization-weighted payout ratio, across all categories, stands at 4.91% (an increase of 0.19 percentage points compared to 2024);
The average payout ratio ranges from 4.2% for residential SCPIs to 6% for diversified SCPIs.
Good to Know
The distribution rate refers to the annual return paid to investors. It is one of the performance indicators to consider when investing in an SCPI, along with:
• the internal rate of return (IRR): which reflects the overall return over a given period;
• the financial occupancy rate (TOF): which provides an indication of the occupancy rate of the properties.
How is income generated by an SCPI taxed?
Dividends received from an investment in an SCPI are taxable as real estate income. They are subject to the progressive income tax scale and social security contributions totaling 17.2 percent .
Two tax regimes apply to real estate income.
The Micro-Land Tenure System
If your property income is less than €15,000 per year, you are subject to the micro-property tax regime. You are entitled to a flat-rate deduction of 30% of the total amount.
The Actual Tax System
If your real estate income exceeds €15,000 per year, the actual cost method applies. You can deduct your actual expenses (loan interest, management fees, etc.) from the total amount.
Tax benefit
If you invest in a tax-advantaged SCPI, you’ll enjoy the benefits of the tax program associated with the investment (Denormandie, Malraux, real estate deficit, etc.).
Good to Know
Dividends from an investment in an SCPI must be reported on your annual tax return.
How do I invest in SCPIs?
To purchase SCPI shares, you can turn to several professionals:
banks or insurance companies;
real estate management and investment companies;
At Raizers, you can invest in one or more SCPIs through your life insurance policy.
Available Funding Options
Similarly, when investing in an SCPI, you can choose from various purchase options:
In cash using your savings that are invested;
On credit by taking out a mortgage;
In life insurance through a multi-asset policy;
Through a split-off by acquiring the bare ownership of the SCPIs.
Generate passive real estate income with Raizers
Raizers is an investment platform that allows individuals and professionals to support various real estate projects. Feel free to contact our experts to learn more about SCPI investments or to review your investment strategy.