Tax · 8 June 2026

Viager taxation in France: a complete overview

Taxation is one of viager's strongest features. Tax-exempt bouquet on the principal residence, deeply abated annuity, wealth tax (IFI) calculated on bare ownership: a summary of the French rules applicable to a viager on the Basque Coast or the Landes coast.

This article describes the French tax framework in force in 2026 for general information only. Each situation is specific: consult your French notary and tax adviser before any decision.

For the seller (crédirentier)

The bouquet: exempt when the property is the principal residence

Where the property sold is the seller's principal residence, the bouquet paid at signature is fully exempt from French capital gains tax. This is the standout tax benefit of occupied viager. The rule applies to a family home in Biarritz as it does to an apartment in Saint-Jean-de-Luz, provided it is the principal residence in the tax sense.

The life annuity: age-based allowance

The life annuity is subject to French income tax, but benefits from a flat-rate allowance depending on the seller's age at the first payment:

• 70% allowance if the annuity begins at 70 or older (only 30% of the annuity is taxed)
• 60% allowance between 60 and 69
• 50% allowance between 50 and 59
• 30% allowance below 50

In practice, a Biarritz seller receiving a €1,200 monthly annuity at age 72 will be taxed on €360 per month only (30% of €1,200), added to other income. The allowance applies for life.

Secondary residence: standard capital gains treatment

Where the property is not the principal residence (for example, a holiday villa in Bidart used occasionally), the bouquet and the capitalised value of the annuity enter the capital gains computation under the standard regime — with allowances for length of ownership and full exemption after 30 years.

Wealth tax (IFI) and council tax

In occupied viager, the seller keeps a right of use and dwelling (DUH). French wealth tax (IFI) is paid by the buyer on the bare ownership value — often lower than the open-market value. The DUH itself has no marketable value taxable to IFI for the seller.

Property tax (taxe foncière) defaults to the buyer; the notarial deed can provide otherwise. Council tax (taxe d'habitation, where it applies) falls on the occupier.

For the buyer (débirentier)

No tax on the discounted purchase

The discount on open-market value — typically 30 to 50 percent in occupied viager — is not a taxable benefit. It reflects the economic value of the DUH retained by the seller, treated by the French tax authority as a simple feature of the price.

No rental income, no rental tax

An occupied viager buyer does not collect rent: no rental income to declare, no social contributions on rent. This is a structural difference with standard buy-to-let investment.

IFI: calculated on bare ownership

French wealth tax (IFI) is levied on the bare ownership value of the property, applying the French statutory usufruct scale (article 669 of the General Tax Code). For a 78-year-old seller, for instance, the bare ownership is valued at 70% of the open-market value — a mechanically reduced wealth-tax base compared to a standard purchase in Biarritz.

Capital gains on resale

On a future resale after the property is freed, French capital gains are computed on the difference between the resale price and the total cost of acquisition. That cost includes the bouquet, the sum of annuities paid (revalued), notarial fees and works. The standard allowance for length of ownership applies.

Succession

For the seller, viager removes the property from the estate. The bouquet and the annuities collected enter the estate to the extent they have been preserved. This mechanism can be used to balance a transmission among heirs — turning an illiquid asset (a single, indivisible property) into shareable cash. A frequent situation on the Basque Coast where the principal residence usually far exceeds the rest of the estate.

For the buyer, the property enters their estate immediately at bare-ownership value, and the DUH lapses on the seller's death: no specific succession tax on viager applies.

Going further

• Why viager is gaining ground in Biarritz in 2026
• Selling in viager on the Basque Coast
• Investing in viager in Biarritz
• FAQ — viager questions