Buying property through an SCI (Société Civile Immobilière) without a down payment is technically possible, but it requires convincing a bank to finance 100%, or even 110%, of the project (purchase price + notary fees + SCI setup costs). While banks sometimes agree to full financing for a main residence in an individual’s name, they tend to be more cautious with SCIs. However, with the right strategy, the right borrower profile, and a solid structure, this operation remains achievable — especially in rental real estate, where future income can reassure the lender.
Why is it difficult to buy property through an SCI without a down payment?
Banks view an SCI as inherently riskier than an individual purchase. The main reason lies in the legal separation created by the company structure. Unlike a personal loan, where you are directly responsible, the SCI introduces a legal entity between you and the asset.
In the event of default, debt recovery becomes more complex: the bank must first pursue the company (often an empty shell), then “pierce the corporate veil” to reach the partners via their personal guarantees. This legal process increases costs and delays recovery.
The real obstacle, however, is financial. Creating an SCI generates unavoidable costs:
- Administrative formalities: expect €1,500 to €3,000 for customized articles of association, legal publication, and company registration.
- Notary fees: around 7–8% of the purchase price.
- Other miscellaneous costs.
Example: for a €500,000 property, you must add about €40,000 in notary fees and €2,500 in SCI setup costs. Without a down payment, you’re asking the bank to lend €542,500 for an asset worth only €500,000. This loan-to-value ratio of 108% exceeds the prudential limits set by the Banque de France.
Which banks offer 110% financing for SCIs?
Officially, no bank advertises a “SCI loan with zero down payment.” In practice, however, some institutions retain flexibility — though nothing is guaranteed. Acceptance conditions vary regularly depending on each bank’s risk policy.
Private banks (e.g., Banque Transatlantique, Milleis Banque, HSBC Private Banking) review each case holistically. They finance not just a property but a broader wealth strategy in which the SCI is one tool among others.
Regional mutual banks (e.g., Caisse d’Épargne, Crédit Agricole) also enjoy local decision-making power. A regional branch director who knows you personally may defend your case before a credit committee. Relationship history can outweigh ratios.
Specialized mortgage brokers (e.g., Artemis Courtage, Empruntis Pro) know exactly which banks, at what moment, will consider your file. Their added value lies in this precise understanding of the lending market.
How to buy through an SCI without a down payment?
First pillar: borrowing capacity
With a net monthly income of €10,000 and a current debt ratio of just 20%, you have around €2,000 in available borrowing capacity per month. Over 20 years at 4%, that represents €330,000. If you request €250,000, the bank sees you remain well within your limits — the credit risk is therefore reduced.
Second pillar: the project’s profitability
A €400,000 rental building generating €30,000 in annual rent (7.5% gross yield) immediately reassures the bank. Why? Because the rents cover loan payments (around €2,200/month), condominium fees, and even taxes.
However, banks typically consider only 70% of projected rent, to account for potential vacancies or unpaid rents.
If the property is self-financing, your savings effort drops to zero. Present a flawless business plan — ideally with an existing commercial lease, a solid tenant, three years of rental history, and local market comparables.
Third pillar: collateral guarantees
Under Article L313-1 of the French Monetary and Financial Code, the bank may require any guarantee it deems necessary. Proactively offer additional security such as a second mortgage on your main home, a pledge on a life insurance policy (without blocking withdrawals), or a joint guarantee from a family member owning property. These real guarantees compensate for the lack of equity.
Which borrower profiles can buy through an SCI without personal funds?
Established liberal professionals are among the most attractive profiles for banks. For example, a couple of medical specialists with €300,000 in combined annual income and five years of practice represents an ideal borrower profile. The stability and steady growth of medical income are reassuring factors.
Successful entrepreneurs also make strong candidates — especially those with profitable financial statements and consistent income. A CEO earning €150,000 annually (salary + dividends) and holding €2 million in shares is a typical example of a favorable profile.
Should you choose a family SCI or a standard SCI?
A family SCI (Articles 832-1 and following of the Civil Code) tends to reassure banks due to its stability. Since partners are related, the risk of disputes leading to dissolution is statistically lower. A common strategy is to include parents in the company’s capital with 1% of the shares, allowing them to act as guarantors without being considered external sureties.
An SCI taxed under corporate income (IS) offers other benefits when buying without a down payment. Rental income is taxed at only 25% (compared to up to 45% + 17.2% in social charges for high earners under income tax). This tax saving increases repayment capacity. The property’s depreciation (2–3% per year) also reduces taxable income, improving cash flow.
However, note that it remains difficult to buy a home through an SCI to live in it if the SCI is taxed under IS. The tax authorities would requalify this as a benefit in kind, resulting in tax reassessment and penalties.
What are the alternatives to traditional bank financing?
A seller’s loan, provided for in Article 1601-1 of the Civil Code, allows the owner to act as your lender. In the typical setup, you pay 20% upfront (borrowed personally or via family), and the balance over 5–10 years at a negotiated rate of 3–5%. The notarial deed includes a termination clause: if you stop paying, the seller automatically reclaims the property.
Real estate crowdfunding is a modern alternative. Platforms like Homunity or ClubFunding finance SCI projects up to €2 million, with interest rates between 8% and 12% over 18–24 months. It’s expensive but effective for high-potential operations (property division, heavy renovation, value creation).
Lastly, the more sophisticated option is real estate lease-back. You sell your main residence to your SCI (creating a tax-exempt capital gain), then the SCI rents it back to you. The capital gain finances equity for a rental investment. Be careful: the rent must reflect market value, or the tax authorities may requalify the transaction.
Common mistakes to avoid when buying through an SCI without equity
In practice, overly optimistic projections harm applications more than the lack of equity itself. Overstating rent by 20% or underestimating charges instantly discredits your file. Banks verify everything: rent via CLAMEUR observatories, charges via the last three homeowners’ meeting reports. Be conservative — plan for one month of vacancy per year, 5% annual maintenance costs, and the actual property tax amount.
Neglecting the key steps of a real estate purchase under the pretext of buying through an SCI is another mistake. A poorly drafted preliminary contract, missing mandatory diagnostics, or undisclosed easements can derail your project and make the bank withdraw its offer.
The most serious mistake remains lack of transparency or omission. Hiding consumer loans, inflating payslips, or inventing a family contribution will be uncovered by the bank during FICOBA and FICP verifications.
To maximize your chances of acquiring property through an SCI without a down payment in the luxury market, Consultants Immobilier and its network of 17 agencies leverage their specialized banking partners, structure your financing file, and identify high-yield properties likely to convince even the most demanding lenders.