The "VIAGER" is a specific kind of sale in which several precautions must be taken. The main ones naturally concern calculation of the "bouquet" ("down payment", or capital paid when signing the sales deed) and the "rente viagère" (annuity or subsequent payments); in this respect, Vaneau Viager assists you with your project to determine the terms precisely, taking into account the seller's right to use the property, his/her age, the yield on the investment, and the property's market value…. Sellers in their eighties can, for example, claim higher monthly income than those in their seventies.

Opting for a "viager" to build a property portfolio while taking advantage of attractive financial and tax benefits. 

In the case of a "viager", the seller, called the "crédirentier" or "annuity recipient", transfers ownership of his/her property to the buyer, referred to as the "débirentier". However, he/she retains the exclusive right to use and live in the property fwor the rest of his/her life. We are then talking about the sale of an "occupied viager", and thus recommend payment of a "bouquet" and monthly instalments calculated on the basis of the property's value and the age of the "crédirentier(s)" ie. seller(s).

Furthermore, in the case of an "occupied viager", both buyer and seller must anticipate the tax-related consequences of the operation. Because the "viager" also has specific features in terms of taxation. Misleadingly called "notary's fees", transfer rights and notary's fees are subject to the same rates as those for a classic sale, except that the price subjected to tax is set on the value of the occupied property. For exemple, in the case of a seller aged 86, the property is discounted by 30 %, which corresponds to the amount of the "bouquet" plus the accumulated value of the annuity payments due. "Crédirentiers" are taxed on their annuity income. The share subject to tax depends on their age when they sign the deed of sale in the notary's office. The older they are, the less tax they will have to pay. Only 30% of annuity income is thus subject to tax if the seller is over 70 years old. If the sale in the form of a "viager" concerns the owner's main residence, he is exonerated from capital gains tax. 

The IFI (wealth tax on real estate) replaced the ISF (solidarity tax on wealth) on January 1st, 2018. Since then, the "débirentier" (buyer) must declare for IFI the value of capitalisation of the "viager" annuity (complying with the published official scale taking the seller(s) into account). In principle, the "crédirentier" (seller) must declare the value of the occupied property for the purposes of IFI. There are several sales formulas with other tax benefits: sale of bare ownership with reservation for the right to use, temporary use, sale with reservation for the right to use and occupy, forward sales etc… In many cases, selling a property "en viager" can be good additional income for retirement. 

If you are an owner, if viager properties are of interest and you would like a personalised analysis, contact our Vaneau Viager specialists.
Laurent Wargnier – Directeur d’Agence Spécialiste du Viager 
+33 6 20 45 85 40 - laurent.wargnier@vaneau.fr