Why invest in property in France as an expatriate?

If you're an expat interested in investing, this article is specially designed for you! It's often overlooked, but investing in property in France, in your situation, is a relevant option. Before going any further, it's worth pointing out that the advantages of this type of investment are still available, even if you live abroad as a French citizen. Here are some explanations.

How do I find a property from abroad?

The main difficulty in investing in property as an expatriate is probably being too far away from the place where you want to invest (France, in our case). The solution is to use a property investment service for expats.

By investing with such a trusted third party, it becomes easier than ever to buy one or more properties and rent them out. You can take advantage of property hunters throughout France who will carry out the search on your behalf. All you have to do is create a list of criteria for your investment, and they'll start looking for the ideal property. The same goes for financing, where specialised brokers for expatriates will work with you...

In short, you may be far away, but you're not alone!

What are the advantages of rental property as an expatriate?

In addition to the usual advantages of investing in property, notably the creation of additional income and assets in France, expatriate status (in Asia or Europe, for example) opens up new opportunities. Let's illustrate this with one of France's favourite types of investment, LMNP (non-professional furnished rental). Let's compare the situation of an expatriate investor with that of an investor in mainland France:

• Metropolitan France: for every €1,000 received, the tax authorities will apply a 50% allowance (except for classified furnished accommodation). In other words, the tax authorities will only deduct €500 from rental income. This income is then added to the income received by the investor in France. If the investor has a reference tax income of €20,000, and generates €12,000 in rental income, his reference tax income rises to €26,000. That in itself is a very attractive type of investment!
  As an expatriate: things are more or less the same here, with just one small difference. If the expatriate has no income in France, then the rent received is not necessarily added to his income in the country where he works. This is practical if you are not taxable. Nevertheless, tax is often applied "at source". This is 20% on income of less than €27,478 and 30% on income above that limit.

As you can see, investing in rental property from abroad as a French citizen is perfectly possible. What's more, the income from these rentals is generally less taxed, which is a highly effective way of optimising your tax situation. Now there's just one thing left to do: get started!