Sellers and investors: find here the answers to the most frequent questions about life annuity in Paris. For a personalised conversation, book an appointment with our firm.
The débirentier is the buyer of a property sold via life annuity. In Paris, this is most often an investor wishing to build a real-estate portfolio in the capital at a discounted price.
The crédirentier is the seller of a property sold via life annuity. They may keep a right of habitation, but they lose full ownership once the sale is completed.
The bouquet is the cash amount paid by the buyer to the seller upon signature of the authentic deed at the notary. It represents part of the total price of the life annuity sale.
Several forms exist: occupied life annuity, occupied life annuity without monthly payment, free life annuity, deferred payment sale and bare ownership. The life annuity without monthly payment allows the seller to receive the full sale price (occupied value) in a single payment at signature.
When you sell your Paris property via life annuity, you receive a cash payment (the bouquet) upon signature of the deed at the notary, then a monthly annuity for life. The split of running charges, works and land tax depends on the type of life annuity chosen and the clauses written into the deed.
Life annuity without monthly payment only applies to occupied life annuity. The seller receives the sale price (occupied value) in a single payment at signature. This allows them to use these funds freely, for example to make gifts to their heirs or loved ones during their lifetime.
Investing in life annuity offers an estimated yield between 6% and 8% per year. It is a simple investment, with no rental constraints, very low taxation and very low management fees. It is an excellent way to diversify your wealth, particularly suited to the Paris market where entry to full ownership remains extremely expensive.
In a life annuity, you invest in real estate, a tangible asset class. You are the owner until you decide to resell, even before the seller passes away. Unlike a stock market investment, you master the risks and secure your capital. An occupied life annuity is also more reliable than a classic rental investment: the seller acts as a stable tenant, with no rent to collect, which protects you from the uncertainties of rental management.
Life annuity offers a clear tax advantage. Unlike a rental property where rents are taxed, the equivalent of the rents paid upfront through the occupation discount is not taxed, which dramatically improves the yield.
Also note: under the IFI (French wealth tax on real estate), the investor does not declare full ownership but only the value corresponding to bare ownership. Buying via life annuity therefore reduces your exposure to the IFI.
Every life annuity file is unique. Capital Viagers Paris offers you a bespoke patrimonial audit, in full confidentiality.
