Popular investment vehicles in France

Investment vehicle

  • (OPCI) Fonds de placement Immobiliier (FPI)
  • (OPCI) Société de placement à prépondérance Immobilière (SPPICAV)

1. Form

(OPCI) Fonds de placement Immobiliier (FPI)
  • Contractual (FCP)
  • No legal personality
(OPCI) Société de placement à prépondérance Immobilière (SPPICAV)
  • Corporate
  • Usually SA or SAS

2. Tax Treatment

(OPCI) Fonds de placement Immobiliier (FPI)
  • Pass-through entity subject to distribution requirements
  • Tax at investor level
  • No access to double tax treaties or EU Directives
(OPCI) Société de placement à prépondérance Immobilière (SPPICAV)
  • Opaque
  • Exempt at fund level but subject to distribution requirements
  • Tax at investor level
  • No access to double tax treaties or EU Directives

3. Transfer Tax

(OPCI) Fonds de placement Immobiliier (FPI)
  • Acquisition of interest in an OPCI is exempt from RETT where the acquirer holds less than 10% (individual) or 20% (corporate) of the OPCI following the acquisition
(OPCI) Société de placement à prépondérance Immobilière (SPPICAV)
  • Acquisition of interest in an OPCI is exempt from RETT where the acquirer holds less than 10% (individual) or 20% (corporate) of the OPCI following the acquisition

4. Listable

(OPCI) Fonds de placement Immobiliier (FPI)
  • No
(OPCI) Société de placement à prépondérance Immobilière (SPPICAV)
  • No

5. Open- or closed-ended

(OPCI) Fonds de placement Immobiliier (FPI)
  • Open- or closed-ended
(OPCI) Société de placement à prépondérance Immobilière (SPPICAV) 
  • Open- or closed-ended

6. Regulatory Supervision

(OPCI) Fonds de placement Immobiliier (FPI)
  • Requires regulatory approval and supervision by the AMF and a regulated manager (AIFM licensed to manage real estate funds)
(OPCI) Société de placement à prépondérance Immobilière (SPPICAV)
  • Requires regulatory approval and supervision by the AMF and a regulated manager (AIFM licensed to manage real estate funds)

7. Investor Restrictions

(OPCI) Fonds de placement Immobiliier (FPI)
  • No
  • However, professional OPCIs (OPPCIs) are open to professional clients only
(OPCI) Société de placement à prépondérance Immobilière (SPPICAV)
  • No
  • However, professional OPCIs (OPPCIs) are open to professional clients only

8. Best Feature

(OPCI) Fonds de placement Immobiliier (FPI)
  • Pass-through tax status at fund level
(OPCI) Société de placement à prépondérance Immobilière (SPPICAV)
  • Corporate vehicle
  • Tax exempt status at fund level
  • One of the most popular French real estate funds

9. Worst Feature

(OPCI) Fonds de placement Immobiliier (FPI)
  • Regulatory approvals
  • Minimum real estate requirement (60%)
  • Minimum capital and liquid asset requirements
  • Professional OPCIs (OPPCIs) are more flexible in terms of liquid asset requirements
(OPCI) Société de placement à prépondérance Immobilière (SPPICAV)
  • Regulatory approvals
  • Minimum real estate requirement (60%)
  • Minimum capital and liquid asset requirements
  • Professional OPCIs (OPPCIs) are more flexible in terms of liquid asset requirements
  • Dividend distribution requirements (rental income 85% and gains 50%)

10. Best Used For

(OPCI) Fonds de placement Immobiliier (FPI)
  • Long-term real estate investments
(OPCI) Société de placement à prépondérance Immobilière (SPPICAV)
  • Long-term real estate investments
Picture of Jérome Sutour
Jérôme Sutour
Partner
Paris