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Taxation of a life annuity

Tax advantages:

When purchasing a life annuity, the buyer must pay the notary fees. The seller must, for his part, learn about the taxation of life annuities and taxes on any capital gains.

Busy life annuity

Life annuity occupied with usufruct:
Repairs to the property, housing and property taxes, energy bills are to be paid by the annuitant.
Big repairs are for the debtor.

 

Life annuity occupied with right of use:

The property tax is the responsibility of the debtor. Other charges and repairs must be provided for in the deed of sale.

 

Free life annuity

Bills, taxes and all repairs are for the debtor.

The life annuity is declared as income tax, a partial exemption is granted to the annuitant, and varies according to the age of the declarant. The older the seller is, the higher the exemption will be.
Thus, people under the age of 50 benefit from an exemption of 30% and 70% for those over 70.


The bouquet is net of tax for the sale of a principal residence.
If it is a second home, no tax if the declarant has been the owner for more than 30 years.

In addition to this, you will need to know more about it.

In addition to the tax advantages linked to the life annuity and the bouquet, the annuitant will also be freed from other types of taxes. Thus, in the context of an occupied life annuity sale, the seller will no longer pay the property tax, works and condominium charges.

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Wealth tax

In the context of an occupied life annuity sale, the seller retains the right of use and habitation or usufruct. He must declare the value to the Real Estate Fortune Tax. The right of use and habitation as the usufruct are calculated from the same tax scale. However, as the user charge is more restricted, a reduction of 40% is applied to it.

The buyer of an occupied life annuity must declare the property value of the property to the IFI. If the life annuity is free, it declares full ownership and the seller is not taxed. In all cases, he can deduct the capital representing the annuity to be paid.