A Société Civile Immobilière (SCI) is, as its name suggests, a form of civil company. This legal status distinguishes it from commercial structures such as SARLs, SASs or SAs. In accordance with the rules, the corporate purpose of an SCI must therefore be exclusively civil, and may under no circumstances be commercial in nature.
However, the French Commercial Code considers "furniture rentals" to be commercial acts (Article L110). Furnished rentals, including seasonal rentals carried out on a regular basis, therefore expressly acquire a commercial character. This means that furnished rental through an SCI becomes commercial not because of its legal form, but rather because of its purpose.
It is important to note that the exercise of a commercial activity by an SCI does not invalidate the partnership contract. However, it may have significant tax consequences. In this situation, the French General Tax Code specifies that non-trading companies carrying on a commercial activity definitively lose their tax transparency.
