Definition of Viager

The term viager originates from the word « viaje », which meant « lifetime » in Old French. This expression evokes uncertainty, a randomness regarding its duration — a human factor left to the whims of life.

This is precisely the essential characteristic of a viager sale: being a random contract, in the legal sense of the term (article 1964 of the Civil Code).

Viager is a specific method of selling movable or immovable property, which involves converting all or part of the price into an annual and life annuity (rente viagère) (regular lifetime income) for the benefit of the seller. This annuity is generally paid monthly.

This practice of purchasing in viager is particularly well-regulated. It has calculation tools that allow valuing both parties according to an established scale to ensure the best possible solution. Its operation is supervised to provide maximum security for sellers and buyers alike.

A balanced principle enshrined by example

The concept of viager is very old in France — it is part of a certain tradition for many families in building their real estate assets. The regulation of viager has, in fact, remained unchanged since 1804, the date of the Napoleonic Code. This legal stability makes it an extremely reliable mechanism.

A viager sale: a mutually beneficial exchange

Resorting to a life annuity sale offers extensive possibilities for all parties involved:

• For the seller (« crédirentier » (annuity recipient)): monetizing one or more properties they own by securing a guaranteed, tax-efficient lifetime supplement to their retirement income.
• For the buyer (« débirentier » (annuity payer)): building real estate assets effortlessly, with controlled savings.

Selling one’s home in viager is an excellent solution for homeowners looking to improve their retirement with confidence. Signing such a contract indeed offers the possibility of receiving a monthly annuity paid for life: it is a guaranteed supplementary income.

Selling well in viager

To support sellers in their choices, it is important to properly assess the situation to sell in viager under the best conditions. The advisors at Viager Europe are field experts, close to your needs, who primarily want to help you find the formula best suited to your life project.

Anything can be sold in viager: residential or commercial real estate, furniture, jewelry, paintings, and even capital. There is no age limit for selling in viager (even occupied), as there is a buyer for every property and rates corresponding to all ages.

A viager can even be resold: all conditions of the initial deed must be respected, particularly the exact amount of the annuity due. It is then the first débirentier who receives the bouquet on the day of the notarized resale signature.

It is also possible to sell in viager even with children. This is often the solution chosen by many sellers to organize their succession during their lifetime (distribution of all or part of the bouquet, for example), thus avoiding potential issues among heirs.

Drafting the contract

A viager sale is formalized by signing an authentic deed with a notary. Its drafting requires great vigilance and the inclusion of precise clauses. Indeed, since viager is a contract of more or less long duration, it must be written to anticipate all situations.

Examples of clauses with significant consequences:

• Distribution of charges and repairs between crédirentier and débirentier.
• Indexation of the main annuity and any supplement.
• Relinquishment of occupancy in case of moving to a senior residence.
• « Seller’s privilege and resolutory action » clause that guarantees the seller payment of the life annuity (rente viagère).

Viager taxation

Life annuities (rente viagère) benefit from an attractive tax allowance, which increases with the age of the crédirentier at the time of the first payment:

• 30% under 50 years old.
• 50% between 50 and 59 years old.
• 60% between 60 and 69 years old.
• 70% from 70 years old.

The reversible annuity is exempt from inheritance tax upon the death of the first spouse (article 793-1-5 of the French General Tax Code). The tax authorities consider, for the application of this scale, the age of the oldest seller calculated on the day of the signing of the authentic deed.

Why choose viager today?

Viager — mainly occupied viager (90% of transactions) — is an interesting solution that addresses current issues:

• Retirement: both for the seller who benefits immediately and for the buyer who is preparing for it.
• Housing: possibility for the buyer to access property in city centers, where real estate developments are rare and prices unaffordable.
• Investment: a tangible alternative to often uncertain financial investments.
• Succession: a solution for blended families or latent issues among heirs.
• Transmission: reduction of significant taxes payable to the state in the absence of direct heirs.

To be best informed and guided according to your situation — and above all to avoid any issues during the life of your viager thanks to a serious and tailored drafting of the initial contract — it is highly recommended to consult a viager professional.