A Safe French Property Investment : to buy a bare ownership property


There is a way of investing in a French Property completely overlooked by overseas investors. We think it is a real shame, as it offers the most secure way of diversifying its property portfolio, without increasing its tax liability and with no risk of rental default either from tenant (buy to let)  or management company (leaseback) . It is based on the separation of ownership into “bare ownership” and “usufruct”.


In summary: An investment in bare ownership offers the best outlook in performance in a fully secure climate. The buyer receives, in the form of an immediate reduction of 40% to 50% on the purchase price, the equivalent of all updated rents, net of costs, taxes and charges, that he would have collected over the period had he invested in full ownership. No hidden expenses or risks. At the end of the temporary usufruct, the bare-owner immediately becomes the full owner. The net gain results from the free and automatic recovery of the usufruct, to which is added the re-evaluation of the property over the whole period.


The concept

  • A private investor acquires a quality property for 50 to 60 % of its value, in bare ownership.
  • At the same time, the usufruct is acquired for a fixed term (15 to 17 years) by an institutional investor who collects the rents and manages rental. Over the whole period, this investor is responsible for all costs, work and taxes.
  • At the end of the usufruct, the original investor automatically and free of charge, recovers full ownership of his property, maintained and renovated.

The advantages

Priority to asset quality: the properties are based in Paris and the Paris region, the Côte d’Azur, exceptional locations in major regional or tourist cities.

Maximize your investment capacity: properties with an immediate reduction of 40 to 50% of the value of full ownership, with no risk of sacrificing quality.

An investment with no tenancy risks: constraints caused by management, unpaid rent, etc. are eliminated. Similarly, all management, maintenance, repair or renovation costs are contractually borne by the usufructuary.

Complete liberty

No minimum duration of ownership is required. At any time, you can sell your bare ownership of the property and keep the tax advantages acquired. At the end of the operation, it is up to you whether you sell, rent or occupy the property. The ENL Law of July 2006 provides that leases signed by the usufructuary are automatically terminated on the day the usufruct expires.

Optimize your tax situation

Investing in bare ownership gives rise to no tax consequences and can even generate attractive tax savings

  • Income tax: no rental income, no additional income tax
  • Possibility of deducting your mortgage interest from any existing or future rental income.
  • Wealth tax: bare ownership is not liable to French wealth tax (ISF) and the debt is deductible from taxable assets. The result is a net wealth tax saving.
  • Property tax: payable by the usufructuary
  • Capital gains: Complete exoneration of capital gains tax on resale after the 15th year.

A selection of developments available to buy under the bare ownership scheme.

Levallois (Hauts-de-Seine) – Located by Neuilly sur Seine in the west side of Paris only minutes from the center of La Defense in a residential district, we have on offer a selection of renovated apartments.  Prices start at €120 000 for a studio, €165 000 for 1 bed, €270 000 for 2 bed and  €335 000 for a 3 bed – Prices include underground parking. Renovation will be completed for the 1T 2012. 40% reduction on the price, lease term 15 years.

Le Chesnay Versailles (Yvelines)– 27 new apartments  in the centre of Le Chesnay, located by the famous Chateau de Versailles, next to Paris most prestigious golf courses, and only 20 minutes by RER A from Paris centre. Prices start at €186 900 for 1 bed and €201 900 for 2 bed apartment. Prices include underground parking. Residence will be completed 3rd T 2012. Price reduction 40%, lease term 15 years.


Lyon (Rhône) – Located in the 7eme district, which is becoming a strategic district within the center of Lyon, 34 new apartments with underground parking. Prices start at €91 000 for a 1 bed, €126 000 for 2 bed and €155 000 for a 3 bed. Residence will be completed for 2T 2012. Price reduction 40%, lease term 15 years.

Also available new apartments in Cannes, Divonnes les Bains , Cap Breton, Biarritz, Annecy.

Contact us for more information contact@stoneandliving.com or tel +33 (0)4 72 32 04 25.


254 000€


Charbonnières-les-Bains View


190 415€


Lyon 9 View

Next to Megeve

183 000€

Next to Megeve

Sallanches View