Why invest in SCPI through life insurance?
SCPI (Societes Civiles de Placement Immobilier) allow you to invest in commercial real estate (offices, retail, healthcare, logistics) without having to buy, manage or maintain a property. By subscribing to SCPI shares through your life insurance, you combine real estate returns with the tax advantages of the insurance wrapper. This is a particularly relevant combination for investors subject to a high marginal tax bracket.
When held directly, SCPI income is taxed at the income tax scale rate (up to 45%) plus 17.2% social contributions, bringing the total tax to as much as 62.2% for the wealthiest households. Within a life insurance wrapper, this income is capitalised without immediate taxation. Upon a withdrawal after 8 years, taxation is limited to 7.5% after an allowance of 4 600 euros (9 200 euros for a couple), plus social contributions.
The tax advantage illustrated
Concrete example: Veronique, 52, a notary in Aix-en-Provence, earns a high income placing her in the 41% bracket. She invests 100 000 euros in SCPI Corum Origin (2024 distribution rate: 6.06%).
- Held directly: annual income of 6 060 euros, taxed at 58.2% (41% + 17.2%) = 2 534 euros net after tax
- Via Linxea Spirit 2 life insurance (after 8 years, 100% rent pass-through): income is capitalised and reinvested. Upon withdrawal, the effective taxation on gains is around 24.7% (7.5% + 17.2%) = approximately 4 564 euros net after tax on withdrawn gains
Over 15 years, the tax difference represents tens of thousands of euros in additional capital thanks to the compounding effect (income not immediately taxed itself generates returns).
How do SCPI work in life insurance?
The investment mechanism
When you invest in SCPI through your life insurance, the insurer holds the SCPI shares on your behalf. You do not receive the rental income directly: it is automatically reinvested in the contract, increasing the value of your SCPI unit-linked fund. This automatic capitalisation strengthens the compound interest effect.
Key specifics to know
Partial rent pass-through. The insurer does not always pass on 100% of the rental income distributed by the SCPI. The pass-through rate varies considerably between contracts and insurers:
| Life insurance contract | Insurer | Rent pass-through rate | Unit-linked management fees |
|---|---|---|---|
| Linxea Spirit 2 | Spirica | 100 % | 0.50 % |
| Corum Life | Corum | 100 % | 0 % on Corum SCPI |
| Placement-direct Vie | SwissLife | 100 % | 0.50 % |
| Lucya Cardif | BNP Paribas Cardif | 100 % | 0.50 % |
| Linxea Avenir 2 | Suravenir | 85 % | 0.60 % |
| Boursorama Vie | Generali | 85 % | 0.75 % |
| Assurancevie.com Puissance Avenir | Suravenir | 85 % | 0.60 % |
Impact of the pass-through rate: On a SCPI distributing 6% yield, a contract passing through 85% only credits you with 5.10%, a loss of 0.90 points. On 100 000 euros invested over 15 years, the difference between 100% and 85% pass-through represents approximately 18 000 euros less capital.
Reduced subscription delay. When held directly, the subscription delay for a SCPI (period before receiving the first rental income) is generally 3 to 6 months. In life insurance, this delay can be reduced or even eliminated depending on the contract (Linxea Spirit 2 generally applies the same delay as the SCPI itself).
No subscription commission. When held directly, SCPI charge a subscription commission of 8 to 12% (for example 12% for Corum Origin, 0% for Iroko Zen). In life insurance, this commission is often waived, but the annual management fees of the contract (0.50 to 0.75%) partially offset this saving over time.
The best SCPI available in life insurance
The 2024 SCPI ranking accessible in life insurance
| Criterion | Corum Origin | Remake Live | Iroko Zen | Epargne Pierre | Primovie |
|---|---|---|---|---|---|
| 2024 distribution rate | 6.06 % | 7.79 % | 7.12 % | 5.28 % | 4.52 % |
| Market capitalisation | 2.8 Bn euros | 800 M euros | 600 M euros | 2.5 Bn euros | 4 Bn euros |
| Main sector | Diversified Europe | Diversified Europe | Diversified France/Europe | Offices/Retail | Healthcare/Education |
| Financial occupancy rate | 97 % | 99 % | 98 % | 94 % | 93 % |
| Subscription fees (direct) | 12.00 % | 0 % (but exit fees) | 0 % | 10.00 % | 9.00 % |
| Available on Linxea Spirit 2 | Yes | Yes | Yes | Yes | Yes |
| Available on Lucya Cardif | No | Yes | Yes | Yes | Yes |
| Available on Corum Life | Yes | No | No | No | No |
Detailed analysis of high-performing SCPI
Corum Origin (6.06% in 2024): A flagship SCPI from the Corum range, diversified across 13 European countries (Netherlands, Ireland, Finland, Italy...). Market capitalisation of 2.8 billion euros. Its diversified geographic positioning allowed it to weather the 2023 real estate crisis without a share price decline. Accessible through Linxea Spirit 2 and Corum Life. Financial occupancy rate of 97%, stable for 5 years.
Remake Live (7.79% in 2024): A recent SCPI (created in 2022) posting the market's best yield. An opportunistic strategy with acquisitions across Europe at discounted prices. Market capitalisation of 800 million euros, growing rapidly. Available on Linxea Spirit 2 and Lucya Cardif. Note: its youth means a limited performance track record.
Iroko Zen (7.12% in 2024): A no-subscription-fee SCPI when held directly (no-commission model), diversified across offices, retail, logistics and healthcare. Market capitalisation of 600 million euros. Available on Linxea Spirit 2 and Lucya Cardif. Its no-entry-fee model makes it particularly attractive for short to medium-term investments.
Epargne Pierre (5.28% in 2024): A more mature and conservative SCPI, managed by Atland Voisin. Market capitalisation of 2.5 billion euros with a diversified portfolio in France (offices, retail). Regular and predictable yields, ideal for conservative profiles. Available on most contracts (Linxea Spirit 2, Lucya Cardif, Placement-direct Vie).
Primovie (4.52% in 2024): A thematic healthcare/education SCPI managed by Primonial REIM, with a market capitalisation of 4 billion euros. A resilient sector with long leases (nursing homes, clinics, nurseries). More moderate but very stable yields. Very widely distributed through life insurance.
Essential selection criteria
Distribution rate. This is the annual yield paid to shareholders. In 2024, the average SCPI distribution rate stood at 4.52% according to ASPIM. The best SCPI distributed between 5 and 8%, but a high yield can come with higher risk.
Financial occupancy rate (TOF). This measures the percentage of rental income actually received versus the theoretical income if all properties were rented. A TOF above 93% is considered good. In 2024, Remake Live had a TOF of 99%, Iroko Zen 98%, while some legacy office SCPI fell below 90%.
Market capitalisation. A large SCPI (over 1 billion euros in market capitalisation) offers better rental risk pooling and greater liquidity. Corum Origin (2.8 Bn), Epargne Pierre (2.5 Bn) and Primovie (4 Bn) tick this box.
Geographic and sectoral diversification. Favour SCPI invested across multiple European countries and sectors to limit concentration risk. Corum Origin (13 countries) and Remake Live (European diversification) are exemplary on this criterion.
The best contract for investing in SCPI: Linxea Spirit 2
For SCPI investment through life insurance, Linxea Spirit 2 (insurer Spirica) stands out clearly thanks to three combined advantages:
- 100% rent pass-through: unlike many contracts that only pass through 85% of rents, Linxea Spirit 2 credits the full distributions
- Ability to invest 100% in SCPI: no obligation to maintain a portion in the euro fund (unlike some contracts that require 25 to 50% in euro funds)
- Unit-linked management fees of 0.50%: among the lowest on the market
- Wide choice of SCPI: more than 25 SCPI available, including Corum Origin, Remake Live, Iroko Zen, Epargne Pierre, Primovie
Notable alternative: Corum Life (insurer Corum) offers 0% management fees on Corum SCPI unit-linked funds (Origin, XL, Eurion), but the choice is limited to the Corum SCPI range. It is an excellent choice if you want to concentrate your investment on Corum SCPI.
How much to invest in SCPI within your life insurance?
Recommended weighting
SCPI make an excellent diversification tool within a life insurance contract, but they should not represent your entire allocation. Most wealth management advisors recommend a weighting of 10 to 30% of the contract in SCPI, with the rest split between euro funds, equity ETFs and bonds.
Allocation example: Frederic, 47, a sales manager in Lille, has 80 000 euros in his Linxea Spirit 2 life insurance. His allocation:
- 30% in Spirica Nouvelle Generation euro fund (24 000 euros): security and liquidity, 2024 return: 3.13%
- 40% in equity ETFs (32 000 euros): performance and diversification (Amundi MSCI World CW8 + Amundi S&P 500)
- 25% in SCPI (20 000 euros): regular real estate income, split between Remake Live (10 000 euros, 7.79%) and Epargne Pierre (10 000 euros, 5.28%)
- 5% in dated bonds (4 000 euros): predictable returns
With this split, Frederic benefits from an estimated overall return of 5.5-6.5% per year, with moderate volatility thanks to the real estate and secure components. Diversifying between two SCPI with different profiles (Remake Live, more dynamic, and Epargne Pierre, more conservative) limits concentration risk.
Contract-specific constraints
Note that some insurers impose limits on SCPI investments:
| Constraint | Linxea Spirit 2 | Lucya Cardif | Linxea Avenir 2 | Boursorama Vie |
|---|---|---|---|---|
| Maximum % in SCPI | 100 % | 75 % | 50 % | 50 % |
| Minimum % in euro fund | 0 % | 25 % | 50 % | 50 % |
| Minimum amount per SCPI | 1 000 euros | 1 000 euros | 1 000 euros | 300 euros |
| Rent pass-through | 100 % | 100 % | 85 % | 85 % |
Check these conditions before choosing your contract if SCPI investment is your priority. Linxea Spirit 2 is the only major contract allowing 100% investment in SCPI, with no euro fund obligation.
Specific risks of SCPI in life insurance
Risk of capital loss
SCPI are unit-linked funds: the value of your shares can decline. In 2023, several large office-focused SCPI suffered significant share price declines: Accimmo Pierre (-17%), Laffitte Pierre (-15%), PFO2 (-12%). This correction reflected rising interest rates and the devaluation of office assets. This risk is inherent to real estate investment and serves as a reminder that SCPI are not guaranteed investments. Geographically diversified SCPI (Corum Origin, Remake Live) held up better.
Liquidity risk
In life insurance, SCPI liquidity is theoretically guaranteed by the insurer. However, in the event of massive redemption requests, the insurer may need to delay operations or apply discounts. This risk remains low but is not zero, as shown by the 2023-2024 period when some insurers temporarily extended divestment delays on office SCPI.
Risk of declining rents
An economic recession, rising vacancy rates or downward lease renegotiations can reduce the income distributed by the SCPI and, consequently, the return on your investment. In 2024, the average SCPI yield (4.52%) was stable compared to 2023, but some SCPI saw their distribution drop significantly.
Direct SCPI vs SCPI in life insurance: which to choose?
The choice depends on your tax situation and your objectives:
- High tax bracket (30% and above): life insurance is generally more advantageous thanks to tax-free capitalisation and reduced taxation after 8 years. For a 41% marginal tax rate, the tax saving is considerable.
- Low tax bracket (0 to 11%): direct holding may be preferable because income is lightly taxed and you benefit from the full yield without life insurance contract fees (0.50% per year).
- Estate planning objective: life insurance offers an advantageous estate framework (152 500 euros allowance per beneficiary). Investing in SCPI through life insurance combines real estate returns and estate optimisation.
- Short horizon (less than 8 years): no-entry-fee SCPI held directly (Iroko Zen, Remake Live) can be more advantageous than going through life insurance, especially if your marginal tax rate is moderate.
Conclusion: an essential diversification investment
SCPI in life insurance make an excellent complement to traditional financial investments. They provide a regular yield (4.52 to 7.79% in 2024 for the best), partial decorrelation from equity markets and a significant tax advantage for heavily taxed taxpayers.
Our recommendation: To invest in SCPI through life insurance, favour Linxea Spirit 2 (100% SCPI possible, 100% pass-through, 0.50% fees) with a diversified selection: Corum Origin for European solidity, Remake Live or Iroko Zen for yield, and Epargne Pierre for stability.
Disclaimer
The information presented in this article is provided for informational and educational purposes only. It does not constitute personalised investment advice in any way. Past performance is not indicative of future results. Any investment carries a risk of capital loss on unit-linked funds. Before making any investment decision, we recommend consulting a qualified wealth management advisor.