(Article 28 of the 2015 Amending  Finance Act)

As a reminder, the tax treatment applicable to OPPCIs differs depending on its corporate form: open-ended corporate-status vehicle investing predominantly in real estate - SPPICAV ("Sociétés de Placement à Prépondérance Immobilière") or real estate equity fund - FPI ("Fonds de Placement Immobilier").

The gains realized and distributed by FPIs, which do not have legal personality, are taxed in the hand of the individual unitholders according to the nature of the income distributed: rental income are taxed as real estate income, dividends are taxed as investment income and capital gains are taxed as real estate capital gains.

Article 139 of the law for growth and activity (or so-called "Macron Law") extended the scope of OPPCI’s corporate purpose to furnished rental activity.

In order to take into account this evolution, the Amending Finance Act for 2015 adjusts provisions of the French Tax Code to allow taxation, according to the industrial and commercial profits rules, of gains issued from immovable property assets subject to furnished rental activity and distributed by a FPI to individual unitholders.

Furthermore, the tax regime of capital gains is specified. Real estate capital gain regime or professional capital gain regime applies depending on the status of the unitholder: professional or not.

If the unitholder is a non-resident, the gains realized by the FPI and distributed to the unitholders, as well as the capital gains on the disposal of units, are subject to the withholding tax provided by article 244 bis A of the French Tax Code.

These new provisions are applicable to the income tax due on the income earned in 2015.