Special cases and alternatives: new-builds and viagers

New-build vs old property

When buying a new-build property in France, which is generally defined as one that has been recently constructed or fully rebuilt, rather than a renovation, you may be entitled to a two-year exclusion from taxe foncière property tax.

This can apply to either main or second homes, however it is not automatic.

It is claimed by sending a form declaring completion of the work (whether relating to new construction, reconstruction, addition, or conversion) to your local tax office (centre des impôts) in the 90 days after completion of the work.

The viager system: buying or selling with lifetime income

The viager system is a uniquely French way to buy or sell property, often used by retirees to release capital while remaining in their home. 

In a traditional viager occupé arrangement, the seller retains the right to live in the property for life and receives an upfront lump sum (called the bouquet, often around 30% of the property’s value) plus a regular lifetime payment (rente viagère) from the buyer. 

The buyer acquires the nue-propriété (bare ownership) but cannot use the property until the seller passes away.

A viager libre sale allows the buyer to occupy the property immediately while still paying a bouquet and monthly rent, and assumes all property taxes. 

The viager can help sellers boost retirement income or fund a move to a smaller property while transferring ownership, but it also carries risks: the seller cannot pass the home to heirs, and the buyer’s failure to pay rent can lead to legal complications.

Viager sales are formalised via a notaire, who prepares the acte authentique and handles all payments. 

Prices are typically calculated based on the property’s market value, the bouquet, the seller’s life expectancy, and the expected rent. 

This system is particularly common in France’s major cities and retirement areas, and can also involve multiple investors under a viager mutualisé model.