Real estate crowdfunding in France, how does it work?

Since its early beginnings in the late 1990s, crowdfunding has won over internet users and expanded into many sectors, including music, film, and technology. In 2010, some French platforms started focusing on real estate. By 2025, 34 crowdfunding platforms now allow you to invest, alongside others, in the completion of a single real estate project.

According to a study conducted by the French Crowdfunding Association (FPF) and Mazars, global crowdfunding has grown 12 times since 2015, reaching a total of €9 billion. In 2023, the real estate sector accounted for 55.6% of the total funds raised, with €1,161 million collected. In 2024, 642 projects were repaid.

If this practice is appealing, it’s because it aims to simplify real estate investment as much as possible. In fact, all it takes for an investor is to sign up, click, and wait for the project to be completed. However, not all clicks are equal, and each project involves a specific commitment and financial structure.
 

What types of projects are funded through crowdfunding?

• Real estate development. You can finance the construction of new residential, office, or commercial developments with the goal of selling them.
• Renovation and transformation. You participate in purchasing a property to renovate, aiming for a resale profit or annual rental income. This may include converting commercial or office spaces into residential units.
• Land division. This involves investing in subdividing and reselling land plots.
• Land servicing. You contribute to a project that purchases and prepares land for resale.
• Social housing development.
• Demolition and reconstruction of modern structures or those intended for a new use.
• Strategic buy-and-resell investments. This investment model finances the purchase of an undervalued property (auction, inheritance, old buildings…) with strong potential.

What are the possible financial structures in crowdfunding?

Crowdlending (bond loan financing). This is the most common structure. Investors lend funds to the developer and receive fixed interest payments, either regularly or at the end of the project.

Crowdequity (equity-based financing). Investors become shareholders in the project or the company financing the real estate operation and share in the profits.

Hybrid financing. This combines a fixed-rate loan (bond loan) with profit-sharing.

How to invest in real estate crowdfunding?

You can invest as an individual in your own name. Most crowdfunding platforms allow this. Choose your project carefully by reviewing the return rate, typically between 8% and 12%, with a duration of 12 to 36 months, as well as the associated risks. The minimum investment amount is usually €1,000, though it varies by platform. You recover your initial capital and interest once the project is completed.

It is also possible to invest via a SCI (Société Civile Immobilière - property management company). As an SCI member, your return is proportional to your contribution. You become a shareholder in a real estate sales or rental management project, sharing both profits and risks.

A holding company (SARL, SAS, SCI, or SA) can invest in crowdlending or crowdequity. In some cases, the holding owns shares in the real estate development company (SCCV) executing the project. Investors receive their funds and profits once the project is commercialized. Setting up a holding company allows for investment diversification while optimizing tax obligations.
 

How is crowdfunding taxed?

As an individual, your investment returns are subject to the Flat Tax (PFU - Unique Forfaitary Levy) of 30%, which includes 12.8% income tax and 17.2% social contributions. You are not subject to the real estate wealth tax (IFI) since these investments are considered financial assets.

Investment via an SCI is by default subject to income tax, meaning the SCI’s revenue is included in the tax returns of its partners. However, an SCI may opt for corporate tax (IS - Corporate Income Tax), for example, if it engages in commercial activities. In this case, the SCI is taxed at 25% (or 15% for profits below €42,500). Dividend distributions to partners are then taxed at 30% (Flat Tax - PFU).

A holding company is also subject to corporate tax (IS) at a standard rate of 25% or 15% for profits below €42,500 for small businesses. If the holding company owns at least 5% of a subsidiary (such as an SCCV), it may benefit from the parent-subsidiary regime, allowing for a 95% tax exemption on received dividends. Holding companies are not subject to the 30% Flat Tax (PFU) on crowdfunding earnings and are exempt from real estate wealth tax (IFI).
 

How to choose the right crowdfunding project?

Investing in real estate crowdfunding allows you to earn profits from a developer’s margins through a simplified investment process on dedicated platforms.

Risks exist but are limited and proportional to the expected return. Like any other investment, you could lose your initial capital. Construction costs may also increase, reducing the project’s profitability and your final earnings.

Whether you choose to invest in a new development via a bond loan or the renovation of an old building through an SCI, it is crucial to assess the project’s stability, the investment duration, and the pre-sale rate of the properties. For added security, opt for platforms that offer full transparency, comply with regulations, and are accredited by the Financial Markets Authority (AMF - Autorité des Marchés Financiers).