Credirentier
The seller, the one who receives the annuity. From the Latin credere, creditor of the annuity. Often a senior owner of their primary residence.
Occupied viager - Free viager - Daubry calculation
Viager, beyond the misconceptions
Selling or buying a viager (life annuity sale) is neither a morbid bet nor a matter for specialists. It is an old contract, regulated by the French Civil Code, that can support a more peaceful retirement or a wealth project without resorting to a bank loan. We assist both sides, in the north of Montpellier.
How a viager works
Selling under a viager means transferring your property to a buyer (the debirentier) who pays in two stages: a lump sum paid in cash at the signing before the notary (the bouquet), then a monthly annuity paid until the seller's death (the credirentier). In exchange, the seller usually remains in the property until passing away. This is the so-called occupied viager, the most common scenario.
The viager is governed by articles 1968 to 1983 of the French Civil Code, with origins going back to the Napoleonic Code of 1804. The contract is signed as an authentic deed before a notary who registers the seller's privilege and the resolutory clause. Two strong protections in case of non-payment. The contract relies on a real uncertainty regarding the seller's lifespan. Without this uncertainty, the contract is reclassified as a disguised donation and may be voided.
In 2024, around 5,500 viagers were signed in France, generating 1.6 billion euros in revenue. Occupied viagers represent 67% of the market. The average annuity is 651€ per month, the average bouquet is around 83000€, on properties valued on average at 295000€. Viagers are concentrated in areas where land values are high, which includes north Montpellier.
This page exists to demystify the topic. We explain the words, the calculations, the taxation, the legal protections. We also provide a calculator based on the Daubry scale and the INSEE 2024 tables, so that you arrive at the notary's office with a rough estimate already in mind.
The viager glossary
Eleven words worth understanding before signing.
Debirentier
The buyer, the one who owes the annuity. Becomes owner at signing but does not occupy the property while the credirentier lives, in an occupied viager.
Bouquet (down payment)
The initial capital paid in cash at signing. Usually represents 20 to 40% of the occupied value. Not subject to income tax, exempt from CSG-CRDS social levies.
Life annuity
The periodic income (most often monthly) paid by the buyer until the credirentier's death. Indexed each year on the INSEE consumer price index excluding tobacco. Benefits from a tax allowance of 30 to 70% depending on age at signing.
DUH (Right of Use and Habitation)
The credirentier's right to keep living in the property until passing away. Articles 625 to 636 of the French Civil Code. Does not allow renting out the property, unlike usufruct.
Free viager
The buyer takes possession of the property at signing. No DUH discount. Often involves a second home or an already empty property.
Occupied viager
The credirentier keeps the DUH. The sale price is discounted to reflect this occupancy. 67% of the market in 2024.
Bare ownership
What the buyer immediately acquires in an occupied viager: ownership without enjoyment. They become full owner upon the credirentier's death.
Seller's privilege
Security registered with the land registry that places the credirentier ahead of any other creditor in case of payment default.
Resolutory clause
Express clause that allows the credirentier to recover full ownership if the annuity is no longer paid, without lengthy court proceedings.
Reversibility
Clause providing that the annuity continues to be paid to the surviving spouse upon death. The initial annuity is lower if reversibility is full.
Calculate your viager
Indicative estimate based on the Daubry 2024-2025 scale and the INSEE 2024 tables. For an official calculation, your notary will adjust according to the chosen clauses (reversibility, indexation, allocation of charges).
Your parameters
Move the sliders, the figures update live.
450 000 €
100 000 €1 500 000 €
The credirentier
75 years
30 %
The bouquet is the capital paid in cash at signing. The higher it is, the lower the monthly annuity. The market typically sits around 25 to 35%.
Estimate
The result
Bouquet
76 950 €
Paid at signing
Monthly annuity
1 257 €
Indexed each year
- Market value
- 450 000 €
- DUH discount
- − 193 500 €
- Occupied value
- 256 500 €
- Annual annuity
- 15 088 €
- INSEE life expectancy
- 15.1 years
- Daubry coefficient
- 11.9
Indicative estimate. The official Daubry scale includes 1956 combinations (reversibility, viager on two heads, specific clauses) that may adjust this result. Have it validated by a notary and a viager specialist before any signing.
Discuss my projectHow a viager is calculated
Three elements drive the calculation: the market value of the property, the credirentier's age and gender, and the bouquet-annuity ratio chosen by the parties. Since 1995, the profession has relied on the Daubry scale, created by a notary based on the analysis of 20,000 viager contracts. It is now used by roughly one in two notarial offices and by most professional viager specialists.
The method consists of four steps. We start from the market value of the property, that is the free value, as if it were sold without uncertainty. In the case of an occupied viager, we subtract the DUH discount, which depends on age and gender: for a 75-year-old woman, this discount is around 43% of the free value. We then obtain the occupied value.
Next, we choose the bouquet, as a percentage of the occupied value. The higher the bouquet, the lower the annuity. Market practice sits around 25 to 35%, but the parties are free to set whatever they want (article 1976 du Code civil). Finally, the capital remaining after the bouquet is divided by the Daubry coefficient corresponding to the credirentier's age and gender. The result is the annual annuity. Dividing by 12 gives the monthly annuity.
For a couple, the annuity is calculated on the life expectancy of the younger party, with an increased coefficient for reversibility. The annuity continues until the death of the last survivor.
Once set, the annuity is reassessed in January every year, based on the variation of the consumer price index excluding tobacco published by INSEE. This indexation protects the credirentier from inflation.
A concrete example
Mrs. Robert, 75, lives in a house in Saint-Gély-du-Fesc valued at 380000€. She wishes to sell as an occupied viager to keep her home and supplement her retirement.
DUH discount (75-year-old woman): 43%. Occupied value: 216600€. Bouquet at 30%: 64980€ paid at signing. Capital to be converted into annuity: 151620€. Daubry coefficient for a 75-year-old woman: 11.9. Annual annuity: 12741€, that is 1062€ per month, indexed each year.
Mrs. Robert stays at home, the property tax shifts to the buyer, as do major repairs. Her annuity is taxable only at 30% (70% allowance from age 70 onwards). The bouquet is not taxable. The capital gain is exempt since this is her primary residence.
Viager
Selling under a viager after 65
The viager primarily addresses seniors who own their primary residence. Profiles vary, but a common logic brings them together: turning part of one's real estate wealth into income, while continuing to live at home.
The most frequent motivation has nothing ideological about it. It is a retirement calculation. The average pension in France is around 1500€, while the running expenses of a homeowner in Montpellier (property tax, condominium, energy, healthcare) absorb a growing share of that sum. Selling under a viager allows the seller to capture, during their lifetime, the value of an asset that lies dormant.
Three life moments come up in our meetings. Widowhood, when the family home becomes burdensome and an income supplement secures daily life. The need for care or home assistance, which can be financed with the bouquet. The wish to help a child or grandchild with a real estate purchase, studies or a professional project, without waiting for the inheritance.
The tax framework leans in favor of seniors. From age 70 at signing, only 30% of the annuity is taxable under the income tax brackets, the remaining 70% is exempt. The taxable fraction is locked in for life: signing after the 70th birthday remains a sound optimization choice. The bouquet is not taxable as income. If the property is the primary residence, the capital gain is fully exempt (article 150 U du CGI).
On the expense side, the deed transfers the property tax to the debirentier (unless otherwise agreed) along with major repairs as defined by article 606 du Code civil (roof, structural walls, vaults). The credirentier only bears running expenses and routine maintenance (article 605). For an elderly owner watching the house age along with them, this is a real relief.
The viager finally protects the spouse via the reversibility clause. The annuity continues at 100% until the death of the last survivor, with no inheritance tax on the annuity. For a couple, this is often the deciding factor.
The real advantages for the seller
Lifetime retirement supplement
The annuity is paid until the end and indexed each year on inflation.
Immediate capital
The bouquet (between 20% and 40% of the occupied value) is available from signing.
Staying at home
The DUH guarantees that the seller remains in their property until the end, with no further steps.
Lighter taxation after 70
70% allowance on the annuity, capital gain exemption on primary residence, non-taxable bouquet.
Charges transferred
Property tax and major repairs shift to the buyer.
Spouse protection
With reversibility, the annuity continues until the death of the last survivor, outside of inheritance.
The risks to be aware of
Early death after signing: heirs only recover the amounts already received. The 20-day rule (article 1975 du Code civil) does, however, void the contract in case of death within twenty days from a disease already known at signing.
An illiquid market: finding the right buyer can take 6 to 12 months. Our role is to extend that search beyond Montpellier, towards national and international investors.
Family reluctance: the topic remains sensitive. We often guide sellers through the conversation with their children to avoid misunderstandings.
Viager
Buying a viager: the strategy without a loan
A viager buyer is rarely a speculator. Three profiles dominate our north Montpellier portfolio: the established executive building wealth without going through the bank, the younger professional reaching a property above their conventional borrowing capacity, and the specialist real estate companies focused on buy-renovate-resell.
Buying an occupied viager amounts to acquiring a property discounted by 30% to 50% compared to its market value, with no borrower's insurance, no bank file fees, and notary fees calculated on the occupied value rather than the free value. For a 400000€ property sold as an occupied viager to an 80-year-old credirentière, we are talking about notary fee savings of 30 to 60% compared to a classic sale.
Total cost depends on the credirentier's longevity. The Daubry scale is calibrated on average life expectancy, so the buyer is not making a bad deal if the credirentier lives longer than expected, except in extreme cases. Everyone has Jeanne Calment in mind, who lived to 122 and ruined her debirentier. A shorter-than-average longevity mechanically benefits the buyer.
The viager fits well into a long-term wealth strategy. For a 40-year-old paying 1200€ per month in annuity, the financial effort is comparable to rent or a loan installment, but with a definite end and an asset value that frees up over time. It is also an interesting entry point for those wanting to avoid bank debt in a high-rate environment.
The IFI (real estate wealth tax) deserves a word. For a buyer subject to IFI, the acquisition of an occupied viager is only declared up to the bare ownership value (article 669 CGI). For an 80-year-old credirentier, bare ownership represents 70% of the property value. Furthermore, the capital representing the annuity remaining to be paid is deductible. The IFI base may be cut in half, sometimes more.
The buyer pays the property tax from signing and major repairs as defined by article 606. They do not have immediate enjoyment of the property (in occupied viager), so no rental income. The annuity is not deductible. It is an investment that requires patience and available cash flow for the monthly annuity.
Three buyer profiles we encounter
The established executive (40-55)
Wants to build wealth without lender insurance or mortgage. The monthly annuity replaces a credit installment, but with a defined endpoint and an asset value that releases over time. A strong argument in a high-interest-rate context.
The younger professional (30-45)
Reaches a property worth more than what a bank would lend on credit. A 35-year-old executive can target a 700,000€ home through an occupied viager when their bank envelope would cap at 450,000€. The DUH discount and absence of upfront capital open the horizon.
Buy-renovate-resell companies
Structured real estate investment players. They appreciate the initial discount, the legal security of the seller privilege, and the timing latitude on renovation works and exit. A profile particularly active on prestige properties in north Montpellier.
Why a younger buyer takes interest
30 to 50% discount
The property is acquired well below its market value, in occupied viager.
No bank loan
Cash bouquet plus monthly annuity, with no borrower's insurance or mortgage.
Reduced notary fees
Calculated on the occupied value, that is 30 to 60% less than a classic sale of the same market value.
IFI advantage
Bare ownership declared plus annuity capital deductible, IFI base significantly reduced.
No rental management
The credirentier maintains the property as if they still owned it, the buyer has nothing to do.
Uncorrelated yield
Performance tied to longevity and real estate, weakly correlated to equity or bond markets.
Free viager or occupied viager?
Two formulas for two different rationales. The following table helps you choose.
Property occupancy
Occupied viager
The seller stays at home (DUH)
Free viager
The buyer takes possession at signing
Discount on value
Occupied viager
30 to 50% depending on age and gender
Free viager
None (full market value)
Typical bouquet
Occupied viager
20 to 40% of the occupied value
Free viager
20 to 40% of the free value
Monthly annuity
Occupied viager
Lower (smaller capital)
Free viager
Higher (full capital)
Property tax
Occupied viager
On the buyer
Free viager
On the buyer
Running expenses
Occupied viager
On the seller (article 605)
Free viager
On the buyer
Major repairs
Occupied viager
On the buyer (article 606)
Free viager
On the buyer
Possibility to rent out
Occupied viager
No (DUH is personal)
Free viager
Yes (buyer is free)
2024 market share
Occupied viager
67%
Free viager
33%
Typical profile
Occupied viager
Senior who wants to stay at home
Free viager
Already empty property, second home
On the tax side, who pays what
For the seller (credirentier)
The bouquet is not subject to income tax. No CSG, no CRDS on it. If there is a capital gain on the property, the bouquet enters the calculation base, but the gain is exempt if the property is the primary residence, which is the most frequent case.
The annuity benefits from a progressive allowance based on age at the start of payment, that is the date of the first installment. This age is locked for life. The exact figures appear in article 158-6 du CGI:
- Under 50: 30% allowance, 70% taxable
- 50 to 59: 50% allowance, 50% taxable
- 60 to 69: 60% allowance, 40% taxable
- 70 and over: 70% allowance, 30% taxable
On the taxable fraction, 17.2% in social levies (CSG, CRDS, solidarity levy) is added. On the IFI side, the credirentier of an occupied viager only declares the value of the DUH, which mechanically reduces their taxable base.
For the buyer (debirentier)
Notary fees are calculated on the occupied value in occupied viager, not on the market value. The overall rate is around 7 to 8% (registration duties, notary fees, disbursements, real estate security contribution). No VAT, since this is a sale between individuals.
The property tax is borne by the buyer from signing, unless otherwise agreed. So are major repairs as defined by article 606 du Code civil. The annuity paid is not deductible from income, it is neither a real estate charge nor a rental expense.
On the IFI side, the buyer declares the bare ownership value (article 669 CGI). For an 80-year-old credirentier, bare ownership represents 70% of the property value. The capital representing the remaining annuity to be paid is deductible as debt. The IFI base may be substantially reduced, sometimes below the taxation threshold.
The legal framework in brief
The viager is not a financial product, it is a civil contract. A few articles of the Civil Code deserve to be read before signing, your notary will explain them in detail.
Article 1968
Defines the life annuity and authorizes its constitution on real estate. This is the legal basis of viager real estate sales.
Article 1975
The contract is void if the person on whose head the annuity is constituted dies of a disease known within twenty days of the signing. This rule protects the buyer from a fictitious uncertainty.
Articles 1977 and 1978
Failure to pay the annuity does not on its own trigger the rescission. Hence the usefulness of the express resolutory clause, to be systematically registered in the authentic deed.
Articles 605 and 606
The credirentier bears routine maintenance, the debirentier bears major repairs (roof, structural walls, framework). The parties may contractually depart from this allocation.
The authentic deed before the notary is mandatory. The notary registers the seller's privilege with the land registry, calculates registration fees, and watches over the uncertainty. Expect roughly 7 to 8% of the occupied value in notary fees for an occupied viager.
Installment sale: the cousin without uncertainty
If the viager appeals to you but the longevity uncertainty bothers you, the installment sale (vente à terme) deserves to be considered.
The principle is similar: a bouquet at signing, then monthly installments. The difference comes down to two words, fixed term. The installment sale provides for a number of installments determined in advance, often 10, 15 or 20 years. If the seller dies before the term, their heirs continue to receive the installments. No uncertainty, no bet on longevity.
On the seller's side, the taxation of the installment sale is gentler than that of the viager. The installments are characterized as a payment of the price (and not as income), and are therefore taxed little or not at all. It is a useful option for a seller aged 55 to 70 who does not yet benefit from the best viager allowance, or for those wishing to transmit a definite income to their children.
On the buyer's side, the installment sale eliminates the longevity risk. The total cost is known at signing, with no need for a bank loan or borrower's insurance, but a predictable installment schedule. It is an interesting entry point for a first-time buyer who cannot secure a classic loan.
Frequently asked questions
How long does it take to sign a viager?
Expect 2 to 4 months between listing and signing the authentic deed. The longest phase is generally the search for a buyer compatible with the credirentier's profile (age, type of property, annuity capacity). The notary then works for around 4 to 6 weeks to prepare the deed, check the diagnostics, and register the seller's privilege.
What happens if the buyer stops paying the annuity?
The authentic deed systematically includes an express resolutory clause. In case of unpaid amounts, the credirentier can recover full ownership of the property after a short procedure (a few months), while keeping the bouquet and the annuities already received as compensation. The seller's privilege, registered with the land registry, places the credirentier ahead of any other creditor in case of default.
Can the credirentier rent out the property?
No, not in occupied viager. The DUH is a personal right that only authorizes occupation by the credirentier (and their spouse if the clause provides for it). To be allowed to rent out, you would need usufruct, a broader right that changes the contract's classification. In a free viager, the debirentier becomes the owner and remains free to rent.
What happens to the viager if the credirentier moves to a nursing home?
The DUH is tied to actual occupation. If the credirentier permanently leaves the property (for example to a nursing home), there are two possibilities. Either the deed provides for a waiver of the DUH with or without financial compensation (annuity revaluation, indemnity, early release of the property). Or the contract is silent and the parties must renegotiate. Our advice is to plan for this hypothesis from the moment of signing.
Is the bouquet negotiable?
Yes. The bouquet-annuity ratio is open (article 1976 du Code civil). In practice, the bouquet represents between 20 and 40% of the occupied value. The higher the bouquet, the lower the monthly annuity. The choice depends on the seller's needs (a substantial bouquet allows, for instance, helping a child or financing care) and on the buyer's resources.
Can a couple sell together under a viager?
Yes, and it is even common. We then talk about a viager on two heads. The annuity is calculated on the life expectancy of the younger spouse, with an increased coefficient for reversibility. The annuity continues until the death of the last survivor. For a couple, this is the formula that best secures the spouse.
What is the ideal age to sell under a viager?
No legal minimum, but in practice the viager truly makes sense from age 70, for two reasons. Taxation first: from age 70, only 30% of the annuity is taxable, and this allowance is locked for life. Uncertainty next: a credirentier who is too young deters buyers because the Daubry coefficient makes the annuity small and the total commitment period very long. The 70-to-85 age bracket is the most active on the market.
Do you handle viager in Saint-Gély-du-Fesc or Saint-Clément-de-Rivière?
Yes, throughout north Montpellier (Saint-Clément-de-Rivière, Montferrier-sur-Lez, Saint-Gély-du-Fesc, Castelnau-le-Lez, Prades-le-Lez, Assas, Le Crès, Combaillaux). Our local market knowledge allows us to estimate the market value correctly, which is the starting point of any viager negotiation. We work with partner notaries who are accustomed to viager.
How does a viager sale work?
Setting up a viager involves five steps: estimating the property's market value, splitting the price between the bouquet and the annuity based on the seller's age (Daubry scale), finding a debirentier buyer, drafting the preliminary contract, then signing the deed before the notary. The annuity is then paid for life and index-linked every year. Alpaca Immobilier guides you through each step in north Montpellier.
A viager project? Let's talk about it
Whether you are a seller or a buyer, every viager is different. One hour of discussion is generally enough to outline the topic and decide whether the formula makes sense in your situation. No commitment, no fees.