Frequently Asked Questions

The debtor is the purchaser of a property sold as a life annuity.

The creditor is the seller of a life annuity property. He or she may retain a right of habitation, but loses ownership rights once the property has been sold.

This is the amount paid in cash (by the buyer to the seller) when the notarised deed of sale is signed.

The annuity-free life annuity only applies to occupied life annuities. The seller receives the sale price (occupied value) in a single payment (as soon as the deed is signed). This means that they can enjoy the property as they wish, for example by making gifts to their heirs or relatives during their lifetime.

Occupied life annuity, occupied life annuity without annuity, free life annuity, forward sale and bare ownership. To find out more, visit our page Discover life annuities

If you sell your property as a life annuity, you will receive a cash payment (bouquet) as soon as you sign the deed of sale with the notary, as well as a monthly annuity for the rest of your life. Payment of utilities, works and property tax depends on the type of life annuity and the clauses set out in the deed of sale.

Life annuities have an undeniable tax advantage. Compared with a rental property where the rental income is taxed, the equivalent of the rent ‘paid in advance’ is not taxed, which drastically improves the profitability of the investment.It should also be noted that when investing in a life annuity, the investor does not have to declare the value of the full ownership for IFI (tax on real estate wealth). They simply declare the value corresponding to the bare ownership of the property. Buying a life annuity therefore reduces your IFI tax liability.

Investing in a life annuity property offers an estimated return of between 6% and 8% a year. It's an easy investment with no constraints, and very low taxation and management costs. It is an excellent way of diversifying your assets.

With a life annuity, you invest in real estate, a safe investment. You own a property until you decide to sell it, even before the seller dies. Unlike a stock market investment, this allows you to control the risks and secure your capital. What's more, an occupied life annuity is more secure than a traditional rental investment, because it is more reliable in its management, with the vendor becoming the equivalent of a tenant. With no rent to collect, you avoid any unforeseen financial events that could affect your profitability.