Frequently asked questions

A viager is a property sale in which all or part of the price is paid as a life annuity — a sum paid to the seller at regular intervals until their death.

Depending on the terms chosen, the buyer may take possession of the property immediately (free viager) or let the seller go on living there (occupied viager).

The price usually comprises:

• a bouquet, paid in cash at the signature;
• a life annuity, paid until the seller’s death.

The contract necessarily rests on one essential legal principle: uncertainty. Since the length of time the annuity will be paid is unknown at the time of the sale, neither party knows the final cost of the transaction.

Today, a viager is a genuine wealth-management tool for funding retirement, preparing for a loss of independence or passing on part of one’s estate.

There are several ways of drawing value from property, each meeting different objectives. The choice depends in particular on your age, your family situation, your financial needs and your plans for the future.

The occupied viager

The occupied viager is the most common arrangement. The seller transfers ownership of the property while keeping the right to live there until their death, through a right of use and occupancy (DUH) or a usufruct, as set out in the contract. In return they usually receive a bouquet in cash at the signature, followed by a life annuity paid until their death.

The free viager

In a free viager, the seller hands the property over to the buyer immediately. The buyer can therefore live in it, let it or resell it from the signature of the notarial deed. The seller also receives a bouquet and, in most cases, a life annuity.

The term viager

The term viager works on a principle close to the viager, but the payments are made over a period fixed in advance (10, 15 or 20 years, for example) rather than until the seller’s death. This arrangement gives both parties better financial visibility and can suit certain estate-planning projects.

The bare-ownership sale

In a bare-ownership sale, the seller sells the bare ownership of the property while keeping the usufruct or a right of use and occupancy. They receive an immediate capital sum, generally without a life annuity. The buyer becomes bare owner at the sale and automatically recovers full ownership when the right kept by the seller comes to an end.

Each arrangement has its own advantages depending on your objectives: increasing your income, staying in your home, passing on your estate, preparing for retirement or making a long-term property investment.

At Viagéo Patrimoine, we carry out a personalised study to determine the solution best suited to your situation.

👉 To find out in detail how each solution works, its advantages and its particular features, see our “Our solutions” page.

No. There is no minimum age to sell in viager. Contrary to a common belief, a viager sale is not reserved for the very elderly. No legislation sets a minimum or maximum age for entering into a viager contract.

In practice, it is mostly people who are retired or close to retirement who choose this solution, to improve their purchasing power, prepare to stay in their own home, help their family or make passing on their estate more efficient.

The seller’s age does, however, directly affect the calculation of the bouquet and the life annuity, because both are based on statistical life expectancy. The younger the seller, the longer the expected period of annuity payments, which generally means a lower monthly annuity.

The key criterion is therefore not age, but how well the life plans, the financial needs and the value of the property fit together.

Yes. It is entirely possible to make a sale with a bouquet only.

This is sometimes called a viager without annuity, or a single-bouquet sale. It can suit a seller who wants a substantial capital sum straight away to fund a project, make a gift or repay a loan. The transaction must nevertheless keep a genuine element of uncertainty if it is to be classed as a viager.

Failing that, a sale of the bare ownership may be the better option.

Yes, the bouquet is not compulsory. Some sales are concluded with an annuity that represents the whole of the price.

This option is sought in particular by sellers who want to maximise their monthly income.

The amount of the bouquet and of the life annuity is the result of an actuarial and financial study based on objective criteria. Their calculation follows a precise method. At Viagéo Patrimoine, we use tables and algorithms, including the Daubry table, which take several factors into account:

• the market value of the property;
• the age and sex of the seller or sellers;
• life expectancy according to mortality tables;
• the type of sale (free viager, occupied viager, bare ownership or instalment sale);
• the economic value of the right of use and occupancy or of the usufruct kept by the seller;
• the bouquet the seller would like;
• the level of annuity sought;
• the financial parameters applied (discount rate, annuity indexation, etc.).

The bouquet and the annuity are closely linked: the higher the bouquet, the lower the annuity, and vice versa. This professional approach, which does not remove the element of uncertainty, makes it possible to secure a sound return for the buyer, even over the very long term.

Since every project is unique, these parameters are adapted to the seller’s objectives and to the buyer’s financial capacity.

At Viagéo Patrimoine, every simulation is carried out with professional tools so as to propose a balanced, secure solution in line with notarial practice.

In the great majority of viager sale contracts, the life annuity is indexed so that it keeps pace with the cost of living and preserves the seller’s purchasing power over the years.

The index is freely chosen by the parties when the notarial deed is signed. In practice, the index most often used is the consumer price index (CPI) excluding tobacco, published monthly by INSEE.

The annuity is generally revised each year on the anniversary of the signature of the notarial deed.

The indexation formula is as follows: New annuity = Current annuity × New index ÷ Reference index

So if the price index rises, the annuity is increased in the same proportion. Conversely, if the index falls, the contract may provide for the annuity to be reduced or, more often, for a clause keeping it at its current level so that it never goes down. This wording must be precisely set out in the notarial deed.

Indexation is an essential protection for the seller. It preserves the economic value of the annuity for as long as it is paid.

Both mechanisms allow the seller to go on using their property after the sale, but their legal effects are different.

The usufruct

The usufruct is the fuller right. It allows the seller to go on living in the property, but also to let it and receive the rental income. The usufructuary may:

• live in the home;
• let it;
• collect the rent;
• keep the use of it until their death or until the agreed term.

The right of use and occupancy

The DUH is more limited. Its holder may only occupy the home personally, for their own needs and those of their family. Unless the deed specifically provides otherwise, they may neither let the property nor receive income from it.

Why does the distinction matter?

The choice between usufruct and DUH has significant consequences for:

• the value of the property;
• the calculation of the sale price;
• the allocation of charges;
• the property wealth tax (IFI);
• the estate strategy of both seller and buyer.

A personalised study with Viagéo Patrimoine is therefore essential before choosing one or the other.

Yes, a viager can form part of an overall estate strategy. It is entirely compatible with many wealth-management arrangements, in particular:

• gifts;
• gift-partitions (donations-partages);
• splitting of ownership (démembrement);
• the sale of the bare ownership with a reserved usufruct or right of use and occupancy.

These mechanisms can be combined to meet different objectives: increasing your income, protecting your spouse, helping your children or preparing your succession.

Yes, selling the bare ownership is an alternative to a viager with an annuity.

The seller keeps the usufruct or a right of use and occupancy, while the buyer becomes the bare owner.

This option often provides a substantial capital sum immediately, without a life annuity. To find out more, see our “Bare-ownership sale” page.

That is a preconception. It often rests on an old-fashioned view of the viager that no longer reflects how transactions work today.

A viager contract is above all an agreement freely entered into by two parties, each pursuing a clearly identified financial objective. The seller wants to draw value from their property to improve their quality of life. The buyer wants to build up property wealth over time.

The interests of the two parties are therefore fully aligned.

Investing in viager means giving your money a purpose, making it useful and beneficial to as many people as possible. The money invested flows back into the real economy through spending on leisure and services.

The sums paid make it possible to fund, among other things:

• home help services;
• adapting the home;
• leisure;
• healthcare;
• support for family members.

The viager thus helps to improve seniors’ purchasing power while supporting the local economy. It is anything but immoral: on the one hand it gives a retired person the chance to carry out their plans, and on the other no party is wronged, since the terms of the contract are clear and explicit from the outset. For the buyer, it is also the satisfaction of helping, throughout the transaction, by giving their savings a purpose.

The very principle of a viager rests on uncertainty: no one knows how long the annuity will be paid.

Where a life annuity is provided for, the length of a viager depends solely on the seller’s lifespan.

In practice, calculations are based on life-expectancy tables published by statistical bodies and used by professionals. These figures make it possible to estimate the economic value of the property, but they are never an individual forecast.

A contract may therefore last a few years just as well as several decades. It is precisely this uncertainty that is an essential condition of the legal validity of a viager contract.

A viager is one of the most protective forms of property sale for the seller. If the bouquet or the annuity is not paid, the notarial deed provides for:

• a vendor’s lien registered with the land registry;
• a termination clause allowing the seller to ask the court to rescind the sale.

Depending on the terms of the contract, the seller then keeps the sums already received. It is nevertheless essential that the contract be drawn up by a notary.

About as long as a conventional property sale. The time needed to sell a property in viager depends mainly on its location, its appeal, its price and the features of the contract proposed.

On average, a viager sale is concluded within three to six months, though some particularly sought-after properties find a buyer more quickly.

That period generally covers:

• the financial study of the project;
• the valuation of the property;
• the search for a buyer;
• the signature of the preliminary sale agreement;
• the signature of the notarial deed.

A professional presentation of the property and a realistic valuation are essential to a quick sale.

Although anyone can sell in viager, the seller’s age has a direct bearing on the economic balance of the transaction. The annuity calculation is based in particular on the statistical life expectancy of the crédirentier.

For example, for the same property, a seller aged 87 will generally receive a higher annuity than a seller aged 70, because the expected payment period is statistically shorter.

Conversely, a younger seller will often benefit from a higher value for the right of use and may favour a larger bouquet or a different estate strategy.

Yes. Depending on the rights they have kept (usufruct or right of use and occupancy), they may leave the home for good. Many contracts include an early-release clause, which then provides for an increase in the annuity or for a compensation payment. The details depend on the terms of the notarial deed.

Yes, under certain conditions. It is entirely possible to sell a property in viager while a mortgage on it is still running.

As in a conventional sale, the outstanding capital must be repaid to the bank when the notarial deed is signed. The repayment is generally made directly by the notary out of the sale price.

If the loan is large, you should check that the bouquet will be enough to clear it, or plan for additional funding.

A preliminary financial study makes it possible to assess the feasibility of the transaction and to adjust the bouquet and the annuity to the seller’s objectives.

Yes, but under certain conditions. If you wish to sell in viager to one of your children, you must have the agreement of all of them.

The Civil Code presumes a disguised gift when certain conditions are met, in particular where the transaction undermines equality between the heirs.

To avoid any later challenge:

• the price must match the real value of the property;
• the terms of the viager must make economic sense;
• the other heirs must be informed and give their agreement.

Notarial and financial advice is indispensable in this kind of case.

The buyer’s death has no effect on the seller’s rights. The obligation to pay the annuity passes automatically to the buyer’s heirs, who in turn become débirentiers, on the same terms as those set out in the original deed.

There is no single answer to this question, because everything depends on your plans for the future. The right balance between bouquet and life annuity depends above all on your financial objectives as a seller. Every project calls for a personalised study with Viagéo Patrimoine.

A large bouquet is often recommended when the seller wishes to:

• repay a loan;
• help their children or grandchildren financially;
• make a gift;
• fund a major project;
• build up a safety cushion of savings.

The bouquet is capital that is available immediately.

It is not taxable income for a main residence. There is no minimum percentage for the bouquet relative to the value of the property. The sale may, however, give rise to capital gains tax depending on the type of property sold.

A high annuity is particularly suitable when the seller wishes to:

• top up their pension over the long term;
• fund staying in their own home;
• prepare for a future loss of independence;
• secure the couple’s income (where income is low, or the amount of a survivor’s pension is uncertain, etc.);
• maintain their standard of living over the long term.

It gives financial visibility throughout the crédirentier’s lifetime.

Bear in mind that too large a bouquet automatically reduces the annuity and can also limit the number of buyers able to fund the transaction.

At Viagéo Patrimoine, we carry out a tailored financial study to find the best balance between bouquet and annuity, according to your objectives, your family situation and your plans for passing on your estate.

On retiring, many owners wonder whether to keep their rental property or to turn it into life income.

There is no universal answer: it all depends on your tax position, your financial objectives, your need for extra income and whether or not you want to go on managing a property. A free viager is nevertheless often a sound solution for owners who want to keep a regular income while freeing themselves from the constraints of letting and reducing their tax bill.

Buy-to-let is an excellent way of building wealth, notably thanks to the leverage of a mortgage. Once the loan has been fully repaid, however, rental income is often taxed more heavily, since there are no longer any loan costs to deduct.

Depending on the owner’s situation, rent may be subject to:

• income tax, at their marginal rate (TMI);
• social security contributions, currently at 17.2 %.

When the owner pays a high rate of tax and no longer has significant deductible expenses, tax can substantially reduce the net return on the investment.

Each situation must nevertheless be examined individually, in particular according to the tax regime chosen (micro-foncier or actual expenses), any property losses carried forward and the household’s other income.

For example:

Take a 75-year-old owner whose marginal tax rate is 30 % and who receives €500 a month in rent.

• As a letting, rent of €500 a month is taxed in full: €500 × 47.2 % (30 % income tax + 17.2 % social contributions) = €236 in tax, for a net income of €264 a month.
• In a free viager, an equivalent annuity of €500 a month is taxable on only 30 % of its amount, i.e. €150. The tax is then €150 × 47.2 % = €70.80, for a net income of €429.20 a month — an effective tax rate of about 14 % on the whole annuity, against 47.2 % on the rent.

On top of this tax advantage, all the constraints of managing a letting disappear: finding tenants, empty periods, unpaid rent, maintenance work and property tax are no longer the seller’s concern. This solution can therefore be a powerful tax-optimisation tool for seniors who want extra income that is taxed less heavily.

At Viagéo Patrimoine, we carry out a personalised comparative study to determine the most advantageous solution for your situation.

In a free viager, the buyer takes possession of the property immediately, while the seller usually receives a bouquet and a life annuity.

This solution has several advantages for some owners:

• a regular life income;
• tax on the life annuity that is often more favourable than on heavily taxed rental income;
• an end to the constraints of managing a letting (finding tenants, unpaid rent, empty periods, routine maintenance…);
• the possibility of passing on part of one’s estate more easily thanks to the bouquet.

Moreover, the seller no longer owns the property after the sale. Taxes and charges fall to the buyer, which generally lightens the seller’s management obligations.

A free viager sale can thus be a powerful financial and tax-planning tool for seniors who want to turn a rental property into a regular additional income, taxed far less heavily than conventional rent, while freeing themselves from managing the property.

Yes, under certain conditions. A property received through an inheritance can perfectly well be sold as an occupied viager, a free viager or in bare ownership. Once the heirs have become owners of the property, they have the same rights as an owner who bought their home in the ordinary way.

Several situations must, however, be distinguished.

If the property belongs to a single heir

Where the property passes to a single heir, that heir is free to decide to sell it in viager, subject to the usual rules applying to any property sale.

If the property belongs to several heirs

Where the property is held in joint ownership following the succession, the agreement of all the co-owners is in principle required to conclude a viager sale.

This step is essential to ensure that the transaction is valid and to avoid any later dispute.

What tax applies?

The sale is subject to the ordinary capital gains tax regime for property. The acquisition price used is generally the value declared in the succession, possibly increased by the costs and expenses allowed by the regulations.

Since every situation is different, a preliminary study makes it possible to optimise the tax on the transaction.

A property received as a gift can also be sold in viager. The owner has the same rights as for any other property. It is, however, important to check any clauses in the deed of gift.

Are there any restrictions?

Some gifts may include:

• a temporary non-transferability clause;
• a reserved usufruct;
• a contractual right of return;
• or other special conditions.

These clauses may restrict or regulate the possibility of selling the property. The deed of gift must therefore be examined before the property is put on the market.

For capital gains tax, the holding period is in principle counted from the acquisition date applying to the donor, which may allow the holding-period allowances to be obtained sooner.

Yes, and this solution is increasingly sought after. Viager sales are not limited to main residences.

A second home can perfectly well be sold as a free or occupied viager. This solution is often chosen by owners who want to turn a little-used asset into additional income.

What are the advantages?

The sale can make it possible to:

• raise immediate capital through the bouquet;
• receive a life annuity;
• simplify the management of one’s assets;
• fund new projects or prepare for retirement.

What tax applies?

Unlike the sale of a main residence, the sale of a second home may give rise to capital gains tax, subject to the exemptions provided by law (holding period, special situations, etc.).

A preliminary simulation with Viagéo Patrimoine will let you anticipate the tax cost of the transaction precisely.

Yes. A viager contract can cover most types of property, including commercial premises, offices, professional practices or warehouses. The legal principle is the same as for a home.

What are the particular features?

Where the premises are let or in use, the following must be examined:

• the current commercial lease;
• the rent received;
• the tenant’s obligations;
• the economic value of the property.

These factors have a direct effect on the sale price, the bouquet and the annuity.

Why choose this solution?

A viager can allow a business owner or an investor:

• to turn business property gradually into income;
• to prepare for retirement;
• to pass on their estate more efficiently.

Each case nevertheless requires its own study.

It is entirely possible to sell land in viager, although it remains rarer than for homes.

What kinds of land can be concerned?

A viager can cover, among others:

• building land;
• agricultural land;
• leisure land;
• land intended for a development project.

How is the price determined?

As with any viager, the value depends in particular on:

• the market value of the land;
• its building potential;
• the planning rules that apply;
• the seller’s age;
• the bouquet and annuity negotiated.

A prior expert valuation is indispensable to value the land correctly.

In an occupied viager, the seller may voluntarily give up their right of use and occupancy and leave the home for good. This decision must be notified to the buyer as set out in the contract, generally by registered letter with acknowledgement of receipt, at least three months before the property is actually vacated.

Early release gives the buyer an immediate advantage, since they can use the property sooner than expected.

In return, contracts very often provide for financial compensation.

That compensation can take different forms:

• an increase in the life annuity;
• the payment of an additional capital sum;
• any other arrangement freely agreed between the parties.

The compensation is the subject of a contractual clause, whose amount is fixed when the notarial deed is signed.

There is no minimum age to sell in viager. Contrary to a common belief, an occupied viager sale is subject to no minimum or maximum age. You are never too young or too old to sell in viager: it is the value that can be drawn from the property, weighed against the seller’s needs, that determines whether the transaction is feasible.

The real question is therefore not “Am I old enough to sell in viager?” but rather “Is a viager the right solution for my financial situation and my plans for the future?”

A viager is above all a wealth-management tool that adapts to each owner’s needs.

Every viager sale is unique. Whether it makes sense to sell depends mainly on:

• the value of the property;
• the seller’s financial needs;
• their plans for the future;
• their family and financial situation.

At Viagéo Patrimoine, we carry out a personalised study to determine whether a viager is the most suitable solution.

In most situations, no.

When a person is the sole owner of their property and has full legal capacity, they are free to sell it in viager without needing their children’s agreement.

The children’s agreement does become necessary, however, when they themselves own part of the property. This happens in particular when, on the death of the first parent, the children inherited part of the bare ownership of the property.

In that case, the surviving spouse cannot sell the full ownership of the property alone. The sale requires the agreement of all the owners concerned. The surviving spouse may choose between three options:

1. the whole in usufruct;
2. a quarter in full ownership plus three quarters in usufruct — the most common case;
3. full ownership of the disposable portion.

Since every family situation is different, it is essential to analyse beforehand how the property is owned, the matrimonial regime, any gifts between spouses and the rights arising from the succession.

At Viagéo Patrimoine, this analysis is carried out up front, to secure the project legally and identify the authorisations needed before the property is put on the market.

The image of a buyer speculating on the seller’s death belongs to the past.

Today, viager buyers are mainly investors pursuing a long-term wealth strategy. They want to diversify their assets by investing in something tangible: property. 80 % of investors have no intention of ever living in the property they buy; they are investing in an asset — bricks and mortar, a safe haven over the long term.

Their approach rests above all on building wealth gradually rather than on seeking an immediate return.

Unlike a purely financial investment, investing in viager also has a human dimension.

The sums paid allow the seller:

• to improve their standard of living;
• to fund staying in their own home;
• to help their family;
• to carry out plans often postponed for years.

The investor thus contributes directly to funding the seller’s plans while building up their own property wealth.

This element of solidarity explains the growing interest of long-term investors in the viager.

In practice it is very difficult to finance the purchase of a viager property, whether occupied or free, with a conventional bank loan.

To guarantee payment of the bouquet and the life annuity, the notary registers in the seller’s favour a vendor’s lien together with a right of rescission. This security allows the crédirentier, in the event of non-payment, to have the sale cancelled or the property sold as a priority to recover the sums owed.

The lien gives the seller first rank on the property. It therefore competes directly with the mortgage the bank would want to take to secure its own loan: the bank can then only take second rank — a guarantee of little real value to it if the borrower defaults. That is why many banks refuse to finance this type of transaction, or attach strict conditions to it.

The solution is generally to offer the bank a guarantee that does not bear on the viager property itself, for example:

• a mortgage on another property already owned;
• a pledge of a life-insurance policy.

On these conditions, some banks agree to finance:

• the bouquet;
• the acquisition costs (notably notary fees);
• or even part of the price, depending on the case.

In that case, the additional guarantee required may take the form of:

• a mortgage on another property;
• a pledge of a life-insurance policy;
• a bank or personal guarantee.

Each case is assessed individually, according to the buyer’s profile and the policy of the bank approached.

The particular case of buying bare ownership

Conversely, for a bare-ownership purchase, where the price is generally paid in full and in cash at the sale, with no annuity spread over time, it is usually easier to obtain conventional bank financing, as the bank can then take an ordinary mortgage on the property acquired.

Yes. If they run into financial difficulty, the buyer may decide to resell their ownership right.

The new buyer then takes over the obligations set out in the viager contract, subject to the parties’ agreement and to the legal terms of the transfer.

This option often makes it possible to avoid non-payment.

Like any property investment, a viager carries certain risks. The main one lies in how long the annuity, if there is one, will actually be paid.

If the seller lives longer than the statistical life expectancy used at the time of the sale, the overall cost of the transaction may exceed forecasts. Conversely, if death occurs sooner, the investment may be more profitable.

This uncertainty is precisely the element of chance that the contract needs to be valid. The buyer must therefore approach the investment as a long-term wealth strategy, not as speculation.

No, the seller keeps the use of the home. The buyer can neither live in it nor let it for as long as that right exists.

A property bought as a free viager, on the other hand, can be let immediately.

Yes, an SCI can perfectly well buy a property in viager. This solution is often used as part of an estate or family strategy. It does, however, require a prior study to measure the civil, tax and succession consequences.

Yes. Spouses, PACS partners, cohabiting partners, members of the same family or business partners can buy a viager property together. Each person’s share of the rights is then set out in the notarial deed.

A viager contract is indeed concluded for the whole of the crédirentier’s lifetime. The buyer makes this purchase responsibly and undertakes to pay the life annuity as set out in the notarial deed until the death of the seller, or of the survivor where the contract is on two lives.

That does not mean, however, that the buyer is tied to the property for ever.

They may decide at any time to resell the viager property. The new buyer then takes over the rights and obligations attached to the contract, in particular payment of the life annuity, subject to the terms of the deed and to the parties’ agreement where that is required.

This option gives real financial flexibility and allows the investor to adapt their strategy as their personal situation or plans change.

It should nevertheless be remembered that paying the annuity is an essential obligation under the contract. In the event of non-payment, the seller may take the action provided for by the deed of sale and by law, which can in some situations go as far as rescinding the sale. Failing to pay the instalments can lead to the total loss of the sums invested.

The seller’s heirs and representatives have three months from the death to remove, without compensation, the furniture and belongings that remain in the property.

After that period, the contract may provide for:

• the payment of a daily occupancy charge;
• the right for the buyer to have the furniture removed, after an inventory, at the estate’s expense.

Precise wording of this clause in the deed helps avoid difficulties between heirs and buyer.

The internal rates of return (IRR) observed in the market most often fall between 5 % and 8 % a year, calculated by relating the annual annuity to the total cost of the transaction. This return nevertheless remains subject to the uncertainty of the seller’s longevity: unlike a conventional financial investment, it cannot be guaranteed with certainty.

The buyer simply continues to pay the annuity set out in the contract. The amount of the annuity does not change, apart from the indexation provided for in the deed. A seller’s late death never calls the validity of the contract into question.

In principle, no. A properly concluded sale cannot be cancelled merely because the heirs feel they have been disadvantaged.

A challenge can only be considered where there is a legal defect, for example:

• no genuine uncertainty;
• the seller’s lack of capacity;
• fraud;
• defective consent.

Such situations remain very rare, even non-existent, nowadays.

No. The bouquet paid in a viager sale is not treated as income. It is therefore not subject to income tax.

A capital gain on the sale may, however, be taxable depending on the type of property sold.

To find out more, see our “Seller taxation” page.

For tax purposes, the annuity paid to the seller in a viager is treated as a life annuity for consideration (rente viagère à titre onéreux). It must be declared every year on the seller’s (crédirentier’s) income tax return.

Only a fraction of the annuity is subject to income tax, however. That fraction is set by the crédirentier’s age at the first annuity payment and stays the same for as long as the annuity is received.

The taxable share is:

• 70 % if the crédirentier is under 50;
• 50 % if they are aged 50 to 59;
• 40 % if they are aged 60 to 69;
• 30 % if they are aged 70 or over.

Conversely, the exempt share is 30 %, 50 %, 60 % and 70 % respectively.

Where the annuity reverts from one crédirentier to another, the tax rules may vary according to the reversion terms in the contract. Each situation must therefore be analysed case by case. To find out more, see our “Seller taxation” page.

No, not when it is a life annuity for consideration. The life annuity paid in a viager sale is a life annuity for consideration.

This annuity is not subject to the 17.2 % social security contributions that apply to investment income, unlike rental income.

This tax treatment is one of the viager’s main advantages for owners who want to replace heavily taxed rental income with income enjoying a more favourable tax regime.

No, the bouquet is part of the purchase price of the property and is not tax-deductible.

No. While the property is occupied by the seller, the annuity payments are not expenses deductible from rental income. If the property is later let, the annuity payments already made do not become deductible as a result, except under certain conditions.

The seller enjoys particularly strong legal protection. Paying the life annuity is the buyer’s essential obligation.

To date, there is no insurance specifically covering the risk of unpaid life annuities. French law does, however, give the seller several particularly effective guarantees.

The contract generally provides for two complementary mechanisms: the vendor’s lien and the termination clause.

The vendor’s lien is a security over the property that guarantees payment of the sale price. It is registered with the land registry within the legal time limits after the signature of the notarial deed. This registration lets the seller keep a guarantee over the property until the sums owed have been paid in full.

Every viager contract includes a termination clause. If the annuity is not paid, once the procedure set out in the notarial deed has been followed (formal notice, any time limits…), the seller can ask the court to rescind the sale, on the basis in particular of article 1654 of the Civil Code, which concerns failure to pay the price.

When the sale is rescinded:

• the seller recovers full ownership of the property;
• the annuity payments already received generally remain the seller’s if the contract so provides;
• the bouquet also remains the seller’s in most contracts, unless otherwise stipulated.

This sanction is a particularly strong deterrent for the buyer.

Note that a buyer in financial difficulty may decide to resell their ownership right. This often makes it possible to avoid non-payment, while keeping the same terms and conditions as in the original contract.

If the buyer runs into temporary difficulty, they can still resell the property to free themselves from their commitments. In the event of a prolonged default, on the other hand, it is the seller who is protected by the lien and the termination clause — hence the importance, for the buyer, of entering into this transaction with clear financial visibility over the long term.

The seller’s death before the notarial deed does not have the same legal consequences for a true viager with an annuity as for a bare-ownership sale without one.

In a viager sale with an annuity, the seller’s death before the signature of the notarial deed in principle causes the sale to lapse, because the uncertainty — an essential element of the viager — disappears before the contract is finally concluded. In a bare-ownership sale (with no life annuity), on the other hand, the seller’s death does not automatically cancel the sale. If the preliminary agreement is legally binding and its conditions are met, the heirs may be required to sign the notarial deed. Each situation nevertheless depends on the clauses of the contract drawn up by the notary.

Note that article 1975 of the Civil Code provides an important exception and a particular protection after the notarial deed. It states that a viager sale is void if the seller dies, within twenty days of the sale, of an illness from which they were suffering at the time of signature. In that case, the uncertainty is considered never to have existed. This rule only concerns true viager sales that include a life annuity.

The property wealth tax (IFI) applies to people whose net taxable property assets exceed €1.3 million on 1 January of the tax year. In an occupied viager, the tax consequences for seller and buyer differ according to the rights the seller keeps. A financial analysis is therefore essential before any transaction.

For the seller (crédirentier)

After the signature of the notarial deed, the seller no longer has full ownership of the property. They keep a right of use and occupancy (DUH) or a usufruct, as set out in the deed.

In principle, the law provides that the holder of a usufruct or a DUH remains taxable on the full-ownership value of the property (article 968 of the CGI). However, the viager benefits from a specific exception to this principle: where the split of ownership results from a sale — rather than a gift or a succession — and the buyer is not a presumptive heir of the seller (within the meaning of article 751 of the CGI), the tax is shared between seller and buyer according to the scale in article 669 of the CGI, based on the seller’s age on the day of the sale (see the table below).

In practice, the crédirentier declares for IFI only the tax value of their usufruct or DUH — never the full-ownership value of the property. This rule applies whether they keep a usufruct or only a DUH.

Are the sums received subject to IFI?

The bouquet and the life annuity payments are not subject to IFI as such, since IFI only applies to property assets. If these sums are held in the form of property, however, they may indirectly enter the seller’s taxable assets. In practice:

• a bouquet placed in a bank account or a financial investment does not enter the IFI base;
• a bouquet reinvested in another property may, on the other hand, be taken into account.

For the buyer (débirentier)

The buyer becomes owner of the property from the signature of the notarial deed. In an occupied viager, provided they are not a presumptive heir of the seller, they declare for IFI only the tax value of the bare ownership, determined according to the scale in article 669 of the CGI — not the total value of the property.

In addition, the capitalised value of the life annuity still to be paid may, under certain conditions, be deducted from their taxable assets (article 973 of the CGI), just like an ordinary debt. The mechanism is comparable to a mortgage: the annuity still owed reduces the net taxable assets. This deduction is, however, limited to the fraction of the property actually included in the buyer’s taxable base, according to the scale in article 669 of the French tax code.

The calculation therefore requires an individual financial study.

A sale of the bare ownership consists in selling the property while keeping, in most cases, a life usufruct. This split of ownership rests on the same tax principle as the occupied viager, with a few specific IFI rules.

For the seller

• After selling the bare ownership, the seller generally keeps the usufruct or a right of use and occupancy until their death. As with the occupied viager, provided the buyer is not a presumptive heir of the seller, the allocation set out in article 669 of the CGI applies: the seller declares for IFI only the tax value of their usufruct or DUH, not the full-ownership value of the property.

For the buyer

• The buyer of a bare ownership is in principle not liable for IFI on the share corresponding to the usufruct for as long as it exists: they declare only the tax value of their bare ownership, according to the same scale. When the usufruct ends (on the seller’s death), they become full owner and the property then enters their taxable property assets in full.
• Each situation depends on the exact nature of the rights kept by the seller and on the terms of the contract. Under article 968 of the CGI, this allocation between usufructuary and bare owner applies in particular where the split of ownership results from a sale to a buyer who is not a presumptive heir of the seller — which is precisely the case of the viager and of the bare-ownership sale.

When the buyer resells a property acquired in viager, they are subject to the ordinary capital gains tax regime for private individuals’ property.

The capital gain is the difference between:

• the resale price;
• the acquisition price recognised for tax purposes, increased where applicable by the costs and expenses allowed by the regulations.

Acquiring in viager does, however, have one important particularity: how the acquisition price is determined.

That depends on the nature of the contract, the clauses of the notarial deed, the supporting documents available and the tax rules in force at the time of resale.

A personalised study is therefore essential to identify the most favourable and legally secure method.

An allocation set out precisely in the deed of sale

The allocation of charges, works and obligations between the seller (crédirentier) and the buyer (débirentier) is an essential element of a viager sale.

Contrary to a common belief, there is no single rule that applies automatically to every viager contract. The allocation is set out in the notarial deed of sale signed before the notary, according to the type of viager chosen and what the parties have agreed.

In practice, occupied viager contracts generally provide for an allocation modelled on the rules for usufruct:

• the seller keeps the use of the property;
• the buyer becomes the owner of the property;
• each bears certain charges as set out in the contract.

Routine maintenance borne by the occupying seller

Where the seller keeps a right of use and occupancy or a usufruct, they generally bear:

• the routine maintenance of the home;
• tenant-type repairs;
• the minor repairs needed to keep the property in good condition.

This allocation draws in particular on the principles of the Civil Code, notably article 605 on the maintenance repairs incumbent on the usufructuary.

Major repairs borne by the buyer as owner

Major repairs are generally the responsibility of the buyer.

Article 606 of the Civil Code traditionally defines major repairs as those concerning:

• load-bearing walls;
• vaults;
• the restoration of beams and entire roofs;
• dykes and retaining and boundary walls.

In an occupied viager, this major work is generally borne by the buyer, unless the deed of sale provides otherwise.

It is therefore essential that the notarial drafting sets out each party’s obligations clearly, to avoid any future difficulty.

A special case: blocks of flats

Where the property sold is in a block of flats under co-ownership, the allocation of charges must also be defined precisely.

In practice, the contract generally provides that:

The occupying seller bears:

• the charges linked to the use of the home;
• individual consumption;
• routine maintenance costs;
• the tenant-type repairs listed in decree no. 87-712 of 26 August 1987.

The buyer as owner bears:

• major works relating to ownership;
• significant works affecting the structure of the building;
• certain service charges not linked to the personal use of the home.

An annual adjustment may be provided for, to balance the accounts between the parties once the co-ownership accounts have been approved.

Property tax depends on the arrangement

The importance of professional support

The allocation of charges is a strategic point in a viager sale. Poor drafting can lead to misunderstandings or disputes several years after the signature.

At Viagéo Patrimoine, we support sellers and buyers in analysing precisely:

• the nature of the viager (occupied, free, with usufruct or with a right of use and occupancy);
• the respective obligations of the parties;
• the financial and estate implications;
• the secure drafting of the contractual clauses.

In a viager, the allocation of charges is not left to chance: it must be clearly defined in the notarial deed to protect the interests of the seller and the buyer alike.

Property tax is a matter of freedom of contract.

No legal rule automatically requires the seller or the buyer to pay it under an occupied viager contract. The allocation must therefore be clearly set out in the notarial deed.

In practice:

• some contracts put the property tax on the buyer as owner, particularly for free viagers;
• others provide that it remains partly or wholly with the occupying seller, particularly for bare-ownership sales.

Precise drafting is essential to protect the interests of both parties.

In a viager sale (other than a free viager), the seller generally continues to bear the costs linked to their occupation of the home.

These include in particular:

• water, gas and electricity consumption;
• subscriptions to the various networks;
• routine maintenance costs;
• tenant-type repairs.

Where the home is in a block of flats, the seller generally bears:

• the charges for the services they use (lift, communal heating, upkeep of the common parts…);
• routine maintenance costs;
• minor repairs.

This allocation of tenant-type repairs is defined in decree no. 87-712 of 26 August 1987.

No, the life annuity ends automatically on the death of the last crédirentier. The heirs cannot claim for it to continue.

A viager sale makes it possible, while keeping the use of one’s property, to receive cash that can be passed on immediately thanks to the bouquet (paid in cash), which, in the case of a gift, will benefit from the statutory allowance of €131,865.

This capital can be used in particular to:

• help a child buy their main residence;
• fund grandchildren’s studies or projects;
• make gifts in advance;
• organise one’s succession on better terms.

The viager thus becomes a genuine tool for planning ahead.

No. A viager sale is a genuine property sale, not a transfer free of charge. As a result, the property sold no longer forms part of the seller’s estate at their death and therefore does not enter the assets of the succession.

The heirs therefore pay no inheritance tax on the property sold.

On the other hand, sums still in the deceased’s estate on the day of death, such as an unspent bouquet or savings built up from the annuity payments, form part of the succession and may be subject to the usual inheritance tax rules.

The viager is thus a particularly useful tool for passing on wealth when it forms part of an overall wealth-management strategy.

Le bouquet et les rentes viagères ne sont pas soumis à l’IFI en tant que tels, l’IFI ne portant que sur le patrimoine immobilier. En revanche, si ces sommes sont conservées sous forme d’actifs immobiliers, elles peuvent entrer indirectement dans le patrimoine taxable du vendeur. En pratique :

• un bouquet placé sur un compte bancaire ou dans un placement financier n’entre pas dans l’assiette de l’IFI ;
• un bouquet réinvesti dans un nouvel immeuble pourra, lui, être pris en compte.

En viager occupé, le vendeur conserve le droit de vivre dans son logement. La valeur de ce droit d’occupation est donc déduite de la valeur du bien. Cette décote dépend notamment de l’âge du vendeur, de la valeur locative du logement et du droit conservé : usufruit ou droit d’usage et d’habitation (DUH).

L’acquéreur achète ainsi le bien à une valeur inférieure à sa valeur libre.

Pour plus d'informations, vous pouvez réaliser une simulation directement avec notre simulateur.

Les frais d’acquisition, appelés couramment « frais de notaire », sont à la charge de l’acquéreur.

Ils ne sont pas calculés uniquement sur le bouquet. En viager occupé, la valeur du droit d’occupation conservé par le vendeur est prise en compte, ce qui peut réduire les frais par rapport à l’achat du même bien libre.

Un viager sur deux têtes concerne généralement un couple. La rente est calculée en tenant compte des deux vendeurs et est versée jusqu’au décès du dernier survivant.

Lorsqu’un viager est conclu par deux vendeurs, le sort de la rente dépend de ce qui est prévu dans l’acte de vente. Elle est maintenue à 100 % au profit du vendeur survivant grâce à une clause de réversion.

Oui, dans un viager conclu par un couple, le droit d’usage et d’habitation ou l’usufruit est prévu jusqu’au décès du dernier survivant. Le conjoint peut alors continuer à vivre dans le logement après le décès de son partenaire.

Le décès du vendeur peu après la vente n’entraîne pas automatiquement son annulation : le viager repose justement sur l’incertitude de la durée de vie du vendeur.

Il existe toutefois une règle particulière : si le vendeur décède dans les 20 jours suivant la vente d’une maladie dont il était déjà atteint au moment du contrat, la rente viagère peut être privée d’effet conformément à l’article 1975 du Code civil.

La répartition des assurances doit être précisée dans l’acte de vente.

En pratique, le vendeur occupant assure les risques liés à son occupation du logement, tandis que l’acquéreur doit également veiller à assurer les risques liés à sa qualité de propriétaire.

En copropriété, chaque copropriétaire doit au minimum être assuré au titre de sa responsabilité civile.

Cela dépend du droit conservé par le vendeur.

Avec un usufruit, le vendeur peut en principe louer le logement et percevoir les loyers, sous réserve de certaines règles particulières selon le type et la durée du bail.

Avec un droit d’usage et d’habitation (DUH), le vendeur peut occuper personnellement le logement mais ne peut ni céder ni louer ce droit.

Cette différence est importante lors du choix entre usufruit et DUH.

Une vente en viager est soumise aux règles habituelles de la plus-value immobilière. Lorsque le bien vendu constitue la résidence principale du vendeur au moment de la vente, la plus-value est totalement exonérée.

Pour une résidence secondaire ou un autre bien, une imposition peut s’appliquer selon notamment la durée de détention et la situation du vendeur.

Comme toute vente immobilière, un viager peut être remis en cause dans certaines situations : absence réelle d’aléa, problème de consentement ou de capacité juridique, prix manifestement déséquilibré ou autres irrégularités affectant la validité du contrat.

Le Code civil prévoit également des situations particulières liées au décès du vendeur, notamment lorsqu’il décède dans les 20 jours de la vente de la maladie dont il était déjà atteint lors de la signature.

En cas de non-paiement de la rente, il ne s’agit pas automatiquement d’une annulation : l’acte de vente prévoit généralement des garanties et une clause permettant, sous certaines conditions, de demander la résolution de la vente.

Oui, le montant du bouquet est personnalisable ! Il est défini en fonction de vos besoins financiers et de la valeur de votre bien immobilier.

Dans le cadre d'un viager occupé, son calcul repose sur la valeur économique du bien, obtenue en déduisant de sa valeur sur le marché le coût de votre occupation à vie. Cette décote d'occupation est estimée à partir de la valeur locative du logement et de votre espérance de vie statistique, en tenant compte de votre âge et du droit d'occupation conservé.

Une fois la valeur économique du bien déterminée, vous pouvez choisir la répartition entre le bouquet, versé à la signature de la vente, et la rente viagère mensuelle. Plus le bouquet est important, plus la rente mensuelle sera faible, et inversement.

Cette souplesse permet d'adapter votre vente en viager à vos projets et à vos besoins, tout en préservant l'équilibre financier de l'opération.

Pas systématiquement. La vente en nue-propriété avec paiement comptant peut convenir à un besoin de capital, tandis que le viager répond davantage à un besoin de revenus à vie.