Are you living abroad and hesitating between investing in a new property or buying an old one in France? This strategic decision directly impacts your profitability, taxation, and ability to manage remotely. Here's how to make the right choice according to your investor expatriate profile.

Since your expatriation, you've heard about real estate opportunities in France. The market offers two main paths: new properties with their guarantees and reduced fees, or old properties with higher potential profitability. Each option has distinct advantages for a non-resident investor. This article objectively compares these two strategies and helps you identify which one best matches your expatriate constraints.

New or old: understanding the differences for an expatriate investment

New property refers to housing constructed less than 5 years ago or delivered as a VEFA (sale in future state of completion). It meets the latest energy standards (RE 2020) and benefits from builder's guarantees.

Old property includes all existing housing, from Haussmannian apartments to buildings from the 1970s. According to impots.gouv.fr, purchasing old properties follows a different tax regime than new ones.

New vs Old: quick comparison table

What really changes for you

Total acquisition cost: A new property costs on average 15 to 25% more per square meter than an equivalent old property. However, notary fees are 2-3% for new properties versus 7-8% for old ones Impots.gouv.fr.

Energy performance: New housing consistently has EPC ratings of A or B, while 35% of old properties are rated E, F, or G. This difference directly affects your rental attractiveness and charges.

Immediate availability: Old properties free up in 2-3 months on average, while new properties require 18-24 months of construction delay. For an expatriate eager to receive rent, this difference matters.

💡 Remember: If you add the purchase price and additional fees, the real gap between new and old properties narrows to 10-15% on comparable properties.

And building on land?

Building your own house (land purchase + construction contract) requires site supervision over 12-18 months. For an expatriate, this option presents major constraints:

• Regular presence needed (architect selection, plan validation, work supervision)

• Land viability costs: An additional €15,000-30,000

• Risk of budget overrun: +10-20% on average

• Difficulty to arbitrate daily technical choices remotely

Our recommendation: Favor purchasing in VEFA, which offers the benefits of new properties without the complexity of site supervision.

New real estate: security and simplicity in remote management

Why new properties make an expatriate's life easier

No works for 10 years. Decennial, biennial, and perfect completion guarantees protect you. From Singapore or Dubai, you avoid urgent calls for a water leak or insulation problem.

Reduced fees from acquisition. For a new property worth €100,000, you pay about €815 in total taxes Impots.gouv.fr compared to nearly €6,000 for an old one. This €5,200 saving represents more than one year of co-ownership charges.

Exemption from property tax. You benefit from 2 years of automatic exemption, with savings of €1,500 to €2,500 depending on the community.

Premium rents justified. A DPE A or B allows you to charge rents 8-12% higher than an old property of the same surface. Tenants accept this additional cost as their energy bills are 40-50% lower.

Limitations to anticipate

The initial purchase price remains higher. For a T2 in Lyon, expect €250,000 for a new property versus €210,000 for an old renovated one. This difference extends your amortization period by 2-3 years.

Uncertain delivery times. Construction delays (3-6 months on average) delay your first rent perception. From abroad, you can't easily monitor progress.

Peripheral areas. New programs focus on the outskirts of cities. You often lose central locations for what you gain in modernity.

⚠️ Warning: The end of the Pinel scheme in 2025 removes the major fiscal advantage of new properties for expatriates. Only the Denormandie scheme remains for certain targeted communities.

Old properties: higher profitability but requires vigilance

The financial potential of old properties

Higher gross rental yield. In 2025, old properties offer an average profitability of 5.9% compared to 4.2% for new properties. On a €200,000 investment, this difference represents an additional €3,400 in annual income.

Negotiation price. In old properties, negotiation margins reach 5-10% of the listed price, saving you €10,000 to €20,000 on an average property. This flexibility doesn't exist in new properties where prices are firm.

Premium locations. Old properties give you access to city centers, historical districts, and high-demand rental areas. A well-located T2 rents for 15% more than an equivalent in the suburbs.

Optimized surface. Apartments from the 70s-80s offer 10-15 sqm more than a new property of the same type. An old T3 is 70-75 sqm versus 55-60 sqm in recent new properties.

What complicates remote management

Works to be planned and supervised. Between €15,000 and €40,000 on average for a complete renovation of a T2-T3. Managing a project from New York or Tokyo requires a trusted intermediary on site.

Energy performance to correct. Since January 1, 2025, G-rated properties cannot be rented out anymore. F-rated properties follow in 2028. Energy renovation costs €20,000 to €35,000 to move from G to D.

Post-purchase surprises. Plumbing, electrical, or infiltration issues sometimes appear after signing. The technical diagnostic does not detect everything.

Digital solutions for expatriates: Platforms like Hosman, Professional Rental Management, or Rentila allow you to manage your property remotely (video inventory, payment tracking, incident management). Expect 7-10% of rents for professional delegated management.

Complex co-ownership. Charges in old co-ownerships reach €40-60/sqm/year compared to €25-35/sqm/year in new ones. General assemblies can vote for major works requiring €5,000 to €15,000 from you.

✅ Good to know: The Denormandie scheme offers up to 21% tax reduction if your works represent a minimum of 25% of the total cost and you commit to renting for 12 years.

Financing and taxation: what changes based on your choice

Obtaining a mortgage based on the type of property

Traditional French banks apply stricter criteria to expatriates, often requiring 30 to 40% personal contribution. At Invexa, we negotiate exceptional conditions with our banking partners: only 10% to 20%, with rates comparable to French residents. This difference radically changes your investment capacity.

New property advantage: Banks perceive new properties as less risky. You can more easily get 80% financing with a 10-20% down payment. The property serves as solid collateral thanks to builder's insurance.

Old property constraint: Banks often require a minimum 15-25% down payment if works are planned. They include renovation costs in the evaluation and request detailed estimates before approval.

For more information on specific financing conditions, see our article Mortgage for French Expatriates: Complete Guide 2025.

Tax impact for non-residents

Your non-resident tax status profoundly changes your real estate taxation. Real estate income is taxed in France at a minimum rate of 20% Impots.gouv.fr, plus social contributions.

In new properties:

• 2 years of exemption from property tax (savings of €2,000-4,000)

• Notary fees at 2-3% instead of 7-8%

• No deductible works but no fiscal surprises

In old properties:

• Deduction of mortgage interests from your rental income

• Renovation works deductible up to €10,500/year in charges

• Possible tax deficit if your charges exceed your rents (carried forward for 10 years)

📋 Tax checklist: Before investing, check the tax treaty between France and your country of residence to avoid double taxation. Discover the details in our guide Tax Rates on Real Estate Income for Non-Residents.

Tax traps to avoid for expatriates

Mistake #1: Not declaring your French rental income on time (form 2044 before May). Penalties: minimum 10% surcharge.

Mistake #2: Forgetting to check the tax treaty with your country of residence. Without this verification, you risk double taxation on the same income.

Mistake #3: Underestimating the impact of tax residence on IFI (Wealth Tax). If you become a French tax resident again, all your worldwide properties are included in the calculation.

Our 4 criteria for deciding based on your expatriate situation

1. Your capacity for remote management

Choose new properties if: You cannot travel regularly to France or you don't have a family/friend network on-site to supervise. New properties minimize interactions and emergencies.

Favor old properties if: You have a reliable contact in France (family, friend, specialized manager) capable of supervising work and maintenance. The higher profitability justifies this constraint.

2. Your investment horizon

New properties are suitable for: A long-term investment (15-25 years) where you seek safety and predictability of cash flows. Patrimonial value is better maintained.

Old properties work for: A 7-12 year horizon where you target immediate profitability and accept to resell with refresh works. Potential for capital gain compensates turnover.

3. Your tax profile

New properties optimize if: You pay little tax in France (modest real estate income). Temporary exemptions suffice and you avoid the complexity of work declarations.

Old properties maximize if: You have significant real estate income to optimize. Deductible charges and tax deficit significantly reduce your taxable base.

4. Your budget envelope

Budget €150,000-250,000: Old properties offer more opportunities in metropolises. You can access well-located T2-T3 where new properties limit you to peripheral studios.

Budget €250,000-400,000: New properties become accessible in large cities (Lyon, Bordeaux, Nantes). You combine decent location and management tranquility.

Budget > €400,000: Both options are equal. Decide based on your management and profitability priorities instead of price.

💡 Remember: An expatriate without a network in France seeking peace of mind will always prefer new properties, even with 1 point less profitability. An expatriate well accompanied and seeking performance will choose renovated old properties.

Conclusion

The choice between new and old properties depends more on your expatriate situation than the property itself. New properties appeal with their simplicity, guarantees, and lack of surprises — major assets when managing from abroad. Old properties attract with their superior profitability and premium locations, but require on-site support.

Two priorities should guide your decision: your real capacity to manage remotely, and your investment horizon. A well-located new property will generate stable income for 20 years without intervention. An intelligently renovated old property can achieve a 6-7% yield in the first year.

At Invexa, we support expatriates daily in their French real estate projects, from financial setup to rental management. Our expertise: helping you access financing with only 10-20% down payment (versus 30-40% elsewhere), where traditional banks demand much stricter conditions. Ready to make your investment a reality? Contact our experts for a free analysis tailored to your expatriate situation.