Expatriates are perfect candidates for real estate rental investments. With comfortable incomes, they can often make the effort to save to become homeowners in France. But because their professional rhythm does not often leave them time to find a property, investors from abroad turn to tailor-made investment services such as Ever Invest. Let's see how the start-up has made a specialty of rental investment for expatriates.
What are the advantages of investing in rental property in France as an expatriate?
Rental investment for expatriates is doing well. For many credit institutions, expatriation often rhymes with investment in stone in France from abroad. Why is this? Because expatriation often leads to an increase in net disposable income and savings, particularly in countries and destinations that are popular with the French: Dubai, Singapore, China, the United States, etc. Expatriates who boost their careers by leaving often invest in rental property in France, where real estate investment remains simple from a rental management point of view and is very attractive from a tax point of view, even for a non-resident.
They have at least 2 good reasons for this: first, their life abroad allows them to make substantial savings on their own housing, often paid for by their employer. Secondly, they know that their expatriation is not eternal, as the majority of them return to France before retirement age.
A remote placement to anticipate
A rental investment for expatriates is therefore one of the most profitable investments to prepare for the future, provided that you find a very serious turnkey solution. Ever Invest knows how to maximize the chances of success of these income supplements. This type of investment has the added quality of being adaptable to return projects. Some expatriates need a property in order to make it their main residence later on, or to house their family in the long term. Others want to make the income earned abroad grow in order to create a nice additional income to prepare for their retirement. Still others want to build up a real estate portfolio that they can pass on to their children. Whatever the case, expatriation is a blessed period for rental investment, as it is a period of enrichment from which individuals can benefit to the maximum.
Easier borrowing conditions with a turnkey solution
The rental investment for expatriates still suffers from a certain mistrust, because the physical distance makes many candidates fear that they will have to travel a lot. In the same way, the attitude of the banks, which are more cautious towards non-French residents, still slows down the ardor of potential expatriate real estate investors. This attitude is bound to change thanks to the real estate sector players present in the digital world, such as Ever Invest. Thanks to the speed and simplicity of the exchanges, the start-up allows to present the characteristics of a property as convincingly as if one were on the spot. It also allows to dematerialize all the exchanges, in order to be able to carry out all the steps of investment remotely: choice of the rental property, transaction, renting... Moreover, it puts at the disposal of its customers, real professionals of the real estate, who will find them the rental investment for expatriate on measure, by taking into account their objectives of investor.
And for those who fear the inconvenience of rental management, this obstacle is not insurmountable. For example, Ever Invest takes care of the initial rental of the property with specialized partners who will then take over the maintenance and management of the rents. A rental investment for expatriates can bring in money, without necessarily bringing in more worries!
Non resident : the services of a turnkey company like Ever Invest
Investing in rental real estate is not something you can improvise as a French resident, so what about rental real estate investment for expatriates?
This is wherea turnkey service for non-residents like Ever Invest brings a real plus: under the relative appearance of its simplicity of use, it brings together in the same service, all the skills necessary for the success of a real estate project. Let's see how this service breaks down.
The definition of the project
The budget that investors have at their disposal at the beginning is the first data of a project. The second is their investment strategy. If they wish to rent in order to quickly receive a good cash flow, the search will be directed towards a certain type of property, capable of generating a high rate of return. If the demand is expressed more in terms of location, to make a quality investment to be lived in or passed on, Ever Invest is interested in properties located in large cities such as Paris.
What type of investment for expatriates? |
Furnished rental (LMNP, SCI, etc...) => the one we recommend |
The empty rental |
The dismemberment (bare ownership / usufruct) |
The choice of the property
This is a very important step, and often a long one, because the success of the company will depend on this choice.
Ever Invest, through its real estate hunter service, aims to propose interesting and profitable properties to invest in real estate in France, whether in the Paris region or in the provinces.
Ever Invest only offers attractive properties for rent. The properties offered are well located, close to all amenities, such as transportation, shops and schools. They are zoned for areas with high rental demand.
A rental investment for expatriates can also present big risks, depending on its importance. The investment property is one of those investments that cannot be decided from abroad without the help of specialists.
Thanks to their knowledge of the area, they have access to the hidden market, with properties not marketed by traditional real estate agencies.
Financing from abroad
Investing in France from abroad requires a research and a financing plan adapted to the particular needs of a remote real estate investment. Banks that calculate the differential are increasingly rare.
Whether you are a French expatriate or a foreigner, in your own name or via a holding company or a SCI, French banks require a much larger contribution than for a French person with a work contract in France who wants to invest in real estate. It is generally necessary to count 30% of contribution to be followed on its project against 10 to 20% for a French resident.
Also, in the required conditions, an additional guarantee is often requested by the bank to the non-resident: the pledge of a part of the funds on a blocked account whatever the country of the non-resident to invest in France: 2 years of drafts blocked on an account to protect itself from the risks of unpaid bills.
The start-up provides the necessary advice for the preparation of the file, even before the first meeting with the banker.
All the administrative formalities such as the file of the compromise of sale or the appointment of signature of the final act at the notary are managed by the company. Thanks to the electronic signature today, it is possible to invest entirely remotely, avoiding any travel and whatever the time difference or the country of the non-resident.
The renovation of the property
The work stage requires the use of experienced professionals. This is a part of the investor's work that can never be done by him from abroad. For this, he can rely entirely on Ever Invest's teams, which provide him with an "archi" pole, composed of serious professionals.
Designed to optimize every square meter, a rental property in France will rent more easily and attract high-end tenants.
The same benefit can be observed in the decoration project. Ever Invest allows you to remotely choose the decoration of a rental investment for expatriates. The start-up strives to identify the tastes of its customers by offering them 3 distinct decorating boards, varying styles, colors and materials. The idea is to create a decoration with real added value, aesthetic enough to trigger the famous "coup de coeur" effect of the tenants, but sober enough to please the greatest number.
Renting out
Ever Invest also takes care of finding tenants, once the deed of sale is signed. Most expatriates choose to rent furnished accommodation for a medium or long period. The LMNP tax regime of professional or non-professional furnished rental is, in fact, very attractive.
High return investments
Ever Invest is a start-up that does not hide its interest in high yield real estate investments. It is a strategy that generally appeals to non-residents who do not intend to take risks for nothing!
For a profitability between 4 and 6 %.
Ever Invest focuses on small areas such as studios for affordable financing and simple rental management when you are an expatriate. The advantage of this investment is that it requires only a modest entry ticket, i.e. 130,000 euros (including notary fees). Even if its net profitability is lower, a small surface is a very good acquisition for a first investment.
For a profitability between 7 and 9%.
Expatriates can opt for shared apartments, with a slightly higher entry fee of 280,000 euros. Due to the high demand in major cities, this type of rental investment is experiencing phenomenal growth. It is an excellent choice for expatriate rental investment, as the concept has a future. The significant cash flow that is obtained from this type of investment recommends it to expatriates wishing to receive immediate income.
For a profitability between 7 and 8.5%.
Its yield makes more than one investor dream, but the investment property remains quite complex. Well renovated and carefully selected, some properties can achieve returns of around 8%, even if the entry fee is around 800,000 euros.
For a profitability between 8 and 10 %.
Ever Invest is positioned on this promising and innovative trend of real estate in France which is the coliving. The rental management on this type of project is simple as an expatriate since there are more and more consulting companies that manage everything. The returns are very high, because the rents received will be higher than in classic colocation, taking into account the equipment and additional services provided such as cleaning, wifi broadband subscriptions, Netflix ... An investment in coliving implies a high entry ticket, around 800 000 euros, because the size of the projects is large when you are an expatriate.
The taxation of a rental investment for expatriates
Ever Invest does not leave French expatriates in the dark as far as taxation of their rental investment is concerned. The status of non-professional furnished renter (LMNP) is certainly the one that reserves the best tax advantages to expatriates compared to empty or bare ownership. However, some turnkey investments such as investment property can also be rented bare. Let's have a look at the tax specificities of a rental investment for expatriates.
The French tax authorities tax French-source real estate income in France regardless of the employment contract, even if the expatriate's tax residence is based abroad. They also remain liable to the French state for property and housing taxes, as well as the tax on vacant premises.
Residents or non-residents, what is the difference? The tax arrangements in place are rather favorable to non-residents. Their rental income is taxed at a minimum rate of 20%. This taxation applies to the income from bare rental property or to the income from industrial and commercial profits (Bic) from furnished rental property. In addition, there are mandatory social security contributions at a rate of 17.2%.
Avoiding double taxation for non-residents
However, investing in real estate in France while being an expatriate raises a delicate question: that of double taxation. The risk exists, in fact, which is why expatriates are well advised to be well informed before embarking on an investment project. Ever Invest takes care of this detail by proposing only projects in countries that will not be concerned by this risk. The European Union as well as the major nations concerned by French expatriation have concluded tax treaties which allow to avoid double taxation. It is possible to find out about these conventions established by the Ministry of Action and Public Accounts before investing.
Today, expatriates concentrate their efforts on 3 types of rental investment: traditional bare property investment, paper stone (SCPI type investment securities) or furnished rental.
If the latter is considered the most profitable, it is not only due to higher rents but also to its tax reductions. The owners are subject to the LMNP regime (non-professional furnished renter) which is rather advantageous and will declare their rental income in the BIC category (industrial and commercial profits). Depending on the amount of rental income, it is advisable to opt for the micro Bic regime or the real regime.
If the annual rents do not exceed 32.600€, it is advised to opt for the micro bic regime. It provides for a 50% deduction and remains relatively simple in terms of declaration procedures.
The question of rents for non-residents
If the rents exceed 32.600€, the real regime will certainly be more interesting, because the different charges become deductible, as well as the depreciation of the property. It will be necessary, however, to use the services of a professional accountant for the calculation of the depreciation.
As far as declarations are concerned, the expatriate who wishes to be taxed under the real tax system must remember to apply for it before February 1st of the current year.
When he leaves, he is taxed in France as a resident from January 1 until the date of his departure. He is then taxed as a non-resident for the remaining period. He will be obliged to declare his French source income at the same time as residents, even if he is no longer considered a French taxpayer.
Which set-up to adopt for an expatriate rental investment?
Ever Invest tends to direct its clients towards LMNP type tax arrangements which can allow expatriates to build up their wealth without paying taxes. The inconveniences of furnished rentals, such as finding the furniture or setting it up, are entirely managed remotely: Ever Invest takes care of this type of service so that an expatriate investor has absolutely nothing to do. Moreover, the commission paid to the platform remains deductible from the property income.
Moving abroad often marks a great economic advance in the lives of individuals. The registration on Ever Invest is free, the commission is only paid in case of success. A service to test for a simple and profitable expatriate management, without any risk.
