Investing in France from Abroad (LMNP, SCPI)

LEARN MORE

Question of the day:

"Alexis, I have savings sitting idle in my account in Singapore, but with inflation and economic uncertainty, I want to secure my future. Is it still possible to invest in France from abroad without taxation sweeping it all away?"

This is a question I receive almost daily. For many expatriates, the French property market remains an unrivalled safe haven. Yet distance and the complexity of tax treaties often turn an enthusiastic project into an administrative obstacle course.

At Balmont Conseil, we do not confine ourselves to a mere selection of products. As an Augmented Wealth Engineer, my mission is to build for you a resilient wealth strategy capable of crossing borders. We use AI to simulate your net-net yield (after French and local taxation) and turn the challenges of buy-to-let investment at a distance into a mechanism of precision.

Bespoke analysis

Why invest in France when you live abroad?

Despite a fiscal environment sometimes perceived as rigid, France offers unique investment opportunities for non-residents.

Legal security and the prospect of capital appreciation

Unlike many emerging countries or even certain Anglo-Saxon jurisdictions, France offers exceptional protection of property rights. With a long-term investment horizon, cities such as Lyon present a solid prospect of capital appreciation, driven by constant rental demand.

The leverage of credit: The non-resident mortgage

This is often the most powerful lever. Even though conditions have tightened, securing a non-resident mortgage allows you to acquire an asset with the bank's money, repaid in part by the rents. Be mindful, however, of the debt-to-income ratio and deposit requirements, often higher for expatriates (typically 20 to 30%).

Property : The two pillars of investing at a distance

To invest in France from abroad, two solutions stand out for their fiscal efficiency and ease of management.

Investing in SCPI from abroad: "Paper Property" without borders

The SCPI (Société Civile de Placement Immobilier) is the ideal solution for those who wish to avoid the worries of finding tenants or carrying out works.

  • Income SCPI outside France: By investing in European SCPIs (Germany, Spain, Ireland), you benefit from lighter taxation. As the income is of foreign source, it often escapes French social levies (17.2%).
  • Delegated management: You have no administrative formalities of rental management to handle. It is the "peace of mind" investment par excellence for generating passive income.

The LMNP status: Depreciation at the service of the non-resident

Furnished buy-to-let property investment, notably  in Lyon for expatriates for instance in furnished mode is a powerful tool of tax optimisation.

  • The furnished letting regime (LMNP): Thanks to the mechanism of accounting depreciation, you can deduct the value of the property and the furnishings from your rents. The result: you receive income that is almost entirely tax-free for many years.
  • Second-hand LMNP under lease for expatriates: We often favour managed residences (student, senior, business) with a professional operator. This guarantees the collection of rents through a commercial lease, even in the event of rental vacancy. It is the very definition of a turnkey property.

Other wealth solutions to invest in France from abroad

There are wealth levers other than SCPIs (paper property) and LMNP (furnished letting) to optimise taxation, succession and pure yield. 

  • Bare Ownership : You buy at a discount of 30 to 40% by leaving the rents to a third party for 15-20 years. Zero management, zero tax, and a mechanical capital gain at the end.

  • The Property Deficit : You renovate an older property to erase the taxation of your other property income. Ideal for enhancing an asset while massively reducing your tax bill.

  • The SCI subject to corporation tax : You place your assets within a company that depreciates the building. This makes it possible to neutralise the tax on profits and to facilitate transmission to heirs.

The challenges and risks of investing at a distance

Investing in France at a distance carries specific investment risks that one must know how to mitigate.

Foreign property financing

The path to a mortgage is complex. French banks are wary of profiles outside the Euro zone. Resorting to a bridging loan or to a broker specialising in non-residents is often indispensable to clear the credit committee stage.

Management and rental management agencies

Dealing with water damage from Tokyo or New York is impossible. Calling upon trusted rental management agencies or opting for a turnkey investment is an absolute necessity. At Balmont Conseil, we select partners capable of managing the entire life cycle of the property.

Taxation of non-residents: Mastering the "Fiscal Wall"

Tax optimisation is at the heart of wealth management for expatriates. Without anticipation, France can tax your French-source income heavily.

Social levies and minimum rate

Non-residents are subject to a minimum rate of taxation (often 20% or 30% depending on the level of taxable income) to which social levies are added.

  • Expert note: If you reside in the EU/EEA or in Switzerland, you may benefit from a reduced rate of 7.5% on social levies. Outside this zone, the full rate of 17.2% applies, save for a specific strategy (such as European SCPIs).

    • Property Wealth Tax (IFI)

    Property wealth tax concerns non-residents as soon as their net property assets in France exceed 1.3 million euros. Regular arbitrage services are needed to restructure your assets (through the dismemberment of ownership or life assurance) in order to remain below this threshold.

    Life Assurance: The Pivot of International Savings

    If property is a pillar, life assurance is the financial centre of gravity of the expatriate. Depending on your capital and your mobility, two solutions compete.

    Luxembourg Life Assurance: The Global Strongbox

    It is the benchmark tool for substantial estates (generally from 250,000 €).

    • Portability and Neutrality: It offers total fiscal neutrality. Only the taxation of your country of residence applies, avoiding complex double taxation.

    • Security of assets: Thanks to the "Security Triangle", your assets are deposited with a custodian bank independent of the insurer, and the Luxembourg State guarantees you a first-rank privilege over your holdings (without ceiling, unlike the 70,000 € in France).

    • Investment universe: Unlimited access to currencies (EUR, USD, SGD, HKD) and to unlisted funds (Private Equity).

    French Life Assurance: The Expatriate’s Foundation

    More accessible, it remains a powerful tool for maintaining a financial link with France.

    • Accessibility and Euro Funds: Ideal for securing part of the capital in guaranteed funds (Euro Funds) that are difficult to access elsewhere.

    • Social Levies: As a non-resident, you are exempt from social levies (17.2%) on the gains, which mechanically boosts the net performance compared with a French resident.

    • Succession: It retains its major tax advantages (the allowances of Article 990 I) even for beneficiaries residing abroad.

    Open architecture at the service of your peace of mind

    Balmont Conseil places its open-architecture approach and its expertise at the service of your investment project.

    Investing in France from abroad should not be a source of stress, but a driver of freedom. Whether it is a matter of preparing a return to France, optimising your succession or simply generating passive income, every decision must be taken with an engineer’s rigour.

    At Balmont Conseil, we place our cross-border expertise and our AI technology at your disposal to turn distance into a strategic advantage.

    Your wealth is a global architecture. Let us build it together. 

    FAQ : Your questions on investing in France from abroad

    How to invest in France from abroad in practical terms?

    What are the formalities and conditions for a non-resident?

    What solutions exist to facilitate management at a distance?

    What tax and reporting obligations should you be aware of?

    What are the specific advantages and difficulties for expatriates?

    Why call upon a wealth management adviser when you live outside France?

    Open architecture at the service of your peace of mind

    Investing in France from abroad should not be a source of stress, but a driver of freedom. Whether it is a matter of preparing a return to France, optimising your succession or simply generating passive income, every decision must be taken with an engineer’s rigour.

    At Balmont Conseil, we place our cross-border expertise and our AI technology at your disposal to turn distance into a strategic advantage.

    Your wealth is a global architecture. Let us build it together.

    Alexis Sagnier

    With over 17 years of expertise in financial engineering, Alexis Sagnier supports company directors and expatriates in securing their cross-border interests.

    BOOK AN APPOINTMENT

    Sources & References:

    Voir

    • General Tax Code (CGI): Article 155 B.
    • Official Bulletin of Public Finances (BOFiP): Regime for inbound expatriates (BOI-RSA-GEO-40).
    • 2025 Finance Act: Analysis of recent developments.
    • Case law on inbound expatriation: Rulings of the Council of State on the reference remuneration.
    • ANACOFI Member Handbook: Standards of advice in wealth engineering.

    Liens utiles :

    Voir

    Ready to structure your future?

    Whether you are in Lyon or on the other side of the world, Alexis Sagnier and the Balmont Conseil team are here to listen.
    BOOK AN APPOINTMENT