Why invest in a European SCPI?

Publish-editorial — For several years now, SCPIs have been rather popular with savers. Indeed, with an attractive average profitability (just over 4%) and a stable property market despite the effects of the crisis, the product has it all. However, a branch of the SCPI is still little exploited and deserves special attention: the European ones. Yes, maybe you did not know it, but it is possible to invest in a European SCPI. Of course, there are differences with the French market.

How does a European SCPI work?

This is a growing trend throughout Europe: European SCPIs are more and more numerous and are beginning to attract some French people. As their names suggest, they offer the possibility of investing in foreign real estate easily. Thus, by placing part of your savings in a European SCPI, you benefit from the real estate market in countries such as Germany, the Netherlands, Italy, the United Kingdom and others. As in France, each SCPI has its own strategy (some will be oriented towards offices, others towards housing, etc.) but also the investment objective. Generally, an SCPI has a goal of return, but it is also possible to choose the SCPI of taxation (to reduce its income tax). However, this second choice turns out to be a little less relevant in the sense that you are, logically, taxable on French soil.

What are the advantages of European SCPIs?

In addition to the fact of wanting to invest abroad with one or more SCPIs, towards the choice of internationalization in Europe has other advantages:

• Absence of social contributions : in France, property income is taxed at 17.2% (at the time of writing), which is not the case for European SCPIs.
• An even more attractive yield : although SCPIs are profitable in France, especially with yield SCPIs, they are even more so in other European countries! Thus, we can easily hope for an annual profitability of more than 6%!
• A currency in Euro : if we omit a country like the United Kingdom, almost all the countries in which we can invest in European SCPIs have the Euro as their currency! Therefore, you save yourself a change of currency and know immediately how much you put in, and how much you earn.

As you will have understood, these advantages are of great interest to investors, and more and more people are daring to take the plunge. Moreover, it is all the easier since, nowadays, this kind of investment is easily accessible from the internet.

Comparison between a French SCPI and a European SCPI

Imagine that you had to invest EUR 10,000 in an SCPI. In our situation, two solutions are available to you (excluding income tax):

• In France, the average return is 4.5%. As a result, he will receive 450 EUR of property income and will therefore be taxed at 17.2% on social security contributions (i.e. 77.40EUR) as well as 30% of TMI (i.e. 135EUR). Ultimately, this allows for a net return of 2.37%.
• Abroad, the beginning of the calculation is identical, however the social contributions disappear and the same example of profitability amounts to 3.15% net.

In short, thanks to this quick calculation, we see that the net profitability for the same project is almost 1% higher by investing in a European SCPI.

A selection of three European SCPIs

To end our article, we can introduce you to three interesting European SCPIs:

• The SCPI Log In managed by Theoreim, which is interested in industrial assets in Europe: distribution target around 5%.
• SCPI Europimmo managed by La Française, which focuses on offices, shops and residences. You should know that this SCPI is predominantly European at nearly 88% (yield at 4.02%)!
• SCPI Sofidy Europe Invest: with an annual return of 4.35%, it focuses on rental properties in large cities.

From now on, you have all the cards in hand to discover the European SCPI. There is no doubt that its many advantages could convince you to diversify your investments, and take advantage of it to increase your real estate assets beyond France.

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