Are you looking for the best way to manage your real estate assets in Andorra? Sociétés civiles patrimoniales (SCP) and sociétés civiles immobilières (SCI) are two interesting options. While they share many points in common, these legal structures do have some notable differences. To help you make the right choice, AND Capital, specialists in the field of setting up a company in Andorra and thetax optimizationexplains everything you need to know.
SCP and SCI: privileged vehicles for wealth management
In Andorra, as in France, non-trading property companies (sociétés civiles patrimoniales et immobilières) offer great flexibility for managing and transferring assetswhile benefiting fromtax benefits not insignificant. But what are their respective specificities?
Société civile patrimoniale (SCP)
A close cousin of the SCI, the SCP makes it possible to manage real estate and other assets. Its corporate purpose is therefore broader:
- Securities portfolio management
- Investments in various sectors
- Real estate ownership and management
Société civile immobilière (SCI)
The purpose of an SCI is to renting or managing real estate assets. Its scope of action is therefore narrower than that of the SCP :
- Furnished and unfurnished rentals
- Construction of buildings for resale
- Managing property assets without joint ownership
Common advantages of SCP and SCI
These two types of company offer several advantages:
- No minimum capital requirement
- Great freedom in drafting the articles of association
- Preservation and easier transfer of assets
- Possibility of successive gifts of shares
Setting up an SCP or SCI in Andorra combines management flexibility with tax optimization.
- The AND Capital team
Limits to take into account
Despite their many advantages, SCP and SCI also have a few drawbacks:
- Corporate purpose limited to civil activities (no commercial scope)
- Taxation of associates' income (unless option for corporate income tax)
- More complex procedure if a property is contributed to the capital
Choosing between SCP and SCI
To choose the right legal status, analyse the composition of your assets:
- Real estate only ➡️ Prefer SCI (non-trading real estate company)
- Diversified assets ➡️ opt for an SCP instead
In all cases, the experts atAND Capital advise and support you every step of the way. expatriation to Andorrathe setting up an offshore company to the request for active residence. With their help, you can create the structure best suited to your needs for manage and pass on your assets with complete peace of mind.
