Living abroad and hesitating between investing in a new property or buying an older one in France? This strategic decision directly impacts your profitability, taxation, and ability to manage from a distance. Here’s how to make the right choice based on your profile as an expat investor.

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

New vs. Old: Understanding the Differences for an Expat Investment

New Properties refer to housing constructed in the last 5 years or delivered in VEFA (sale in future state of completion). They comply with the latest energy standards (RE 2020) and benefit from construction warranties.

Older Properties include all existing houses, from Haussmann apartments to constructions from the 70s. According to impots.gouv.fr, purchasing older properties adheres to a different tax scheme than new properties.

New vs. Old: Quick Comparison Table

What Really Changes for You

Total Acquisition Cost: New properties cost on average 15 to 25% more per square meter than equivalent older properties. However, notary fees are 2-3% for new versus 7-8% for old Impots.gouv.fr.

Energy Performance: New housing consistently shows EPC ratings of A or B, while 35% of older properties are rated E, F, or G. This difference directly impacts your rental attractiveness and expenses.

Immediate Availability: Older properties become available in about 2-3 months on average, while new ones require 18-24 months for construction. For an expat eager to receive rents, this difference is crucial.

💡 Takeaway: When you add up the purchase price and associated fees, the real gap between new and old narrows down to 10-15% on comparable properties.

What About Building on Land?

Building a single-family house (land purchase + construction contract) requires project management over 12-18 months. For an expat, this option presents major constraints:

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

• Land servicing costs: an additional 15,000-30,000€

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

• Difficulty in arbitrating daily technical choices from a distance

Our Recommendation: Favor purchasing in VEFA, which offers the benefits of new property without the complexity of site management.

New Real Estate: Safety and Simplicity of Remote Management

Why New Properties Simplify Expat Life

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

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

Property tax exemption. You receive 2 years of automatic exemption, saving 1,500 to 2,500€ depending on the commune.

Justified premium rents. A EPC of A or B allows you to charge rents 8-12% higher than an older property of the same size. Tenants accept this surcharge as their energy bills are 40-50% lower.

Limits to Anticipate

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

Uncertain delivery deadlines. Construction delays (3-6 months on average) postpone your first rent collection. From abroad, it's not easy to monitor progress.

Peripheral areas. New programs concentrate around metropolitan outskirts. You often lose central locations in exchange for modernity.

⚠️ Warning: The end of the Pinel incentive in 2025 removes the major tax advantage of new properties for expats. Only the Denormandie incentive remains for certain targeted communes.

Old Properties: Higher Profitability but Vigilance Required

The Financial Potential of Old Properties

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

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

Premium locations. Old properties grant access to city centers, historic districts, and areas with high rental demand. A well-located T2 rents for 15% more than an equivalent on the outskirts.

Optimized space. Apartments from the 70s-80s offer 10-15 m² more than a new property of the same type. A T3 old apartment is 70-75 m² compared to 55-60 m² in recent new properties.

What Complicates Remote Management

Expected works and supervision. 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 onsite.

Energy performance to correct. Since January 1, 2025, properties rated G in the EPC can no longer be rented. Those rated F will follow in 2028. Energy renovations cost 20,000 to 35,000€ to upgrade from G to D.

Post-purchase surprises. Plumbing, electrical, or infiltration issues sometimes appear after signing. The technical diagnosis doesn't catch everything.

Digital solutions for expats: Platforms like Hosman, Gestion Locative Pro, or Rentila allow you to manage your property remotely (video inspections, payment tracking, incident handling). Expect to pay 7-10% of rent for professional delegated management.

Complex co-ownership. Co-ownership charges in old properties reach 40-60€/m²/year compared to 25-35€/m²/year in new ones. General assemblies can vote for major works requiring 5,000 to 15,000€ from you.

✅ Good to Know: The Denormandie incentive offers up to a 21% tax reduction if your works represent at least 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 Property Type

Traditional French banks apply stricter criteria to expats, often requiring 30 to 40% personal down payment. With Invexa, we negotiate exceptional conditions with our banking partners: only 10% to 20%, with rates comparable to French residents. This difference drastically alters your investment capacity.

New Property Advantage: Banks perceive new properties as less risky. You more easily obtain 80% financing with a 10-20% down payment. The property serves as solid collateral thanks to builder warranties.

Old Property Constraint: Banks often require a minimum 15-25% down payment if works are expected. They include renovation costs in the evaluation and require detailed quotes before approval.

For more on specific financing conditions, see our article Real Estate Mortgage for French Expats: Complete Guide 2025.

Tax Impact for Non-residents

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

In New Properties:

• 2 years of property tax exemption (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:

• Interest deduction on mortgage from your rental income

• Deductible renovation works up to 10,500€/year in charges

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

📋 Tax Checklist: Before investing, check the tax treaty between France and your country of residence to avoid double taxation. Discover more in our guide Non-resident rental income tax rates.

Tax Traps to Avoid for Expats

Mistake #1: Failing to declare French rental income on time (2044 form before May). Penalties: minimum 10% surcharge.

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

Mistake #3: Underestimating the impact of tax residency on IFI (Real Estate Wealth Tax). If you become a French tax resident again, all your global assets are included in the calculation.

Our 4 Criteria to Decide Based on Your Expat Situation

1. Your Capacity for Remote Management

Choose new if: You cannot travel regularly to France or lack family/friends locally to supervise. New properties minimize interactions and urgencies.

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

2. Your Investment Horizon

New is suitable for: Long-term investment (15-25 years) where you seek security and predictability of cash flows. The heritage value is better maintained.

Old works for: A 7-12 years horizon where you target immediate profitability and accept to sell with refreshment works. The potential for capital gain offsets the turnover.

3. Your Tax Profile

Optimize new if: You pay little tax in France (modest rental income). Temporary exemptions suffice and you avoid complexity in declaring works.

Maximize old if: You have substantial rental income to optimize. Deductible charges and rental deficit significantly reduce your taxable base.

4. Your Budget Envelope

Budget 150,000-250,000€: Old offers more opportunities in metropolises. You access well-located T2-T3s where new constrains you to peripheral studios.

Budget 250,000-400,000€: New becomes accessible in major cities (Lyon, Bordeaux, Nantes). You combine suitable location and management serenity.

Budget > 400,000€: Both options are viable. Decide according to your management and profitability priorities rather than price.

💡 Remember: An expat without a network in France and seeking tranquility will invariably prefer new properties, even with 1 point less in profitability. An expat well supported and seeking performance will choose renovated old properties.

Conclusion

The choice between new and old depends less on the property itself than on your situation as an expat. New properties appeal with simplicity, guarantees, and a lack of surprises, major assets when managing from abroad. Old properties attract with higher profitability and premium locations, but require local support.

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

At Invexa, we support expats 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 (compared to 30-40% elsewhere), where traditional banks impose much stricter conditions. Ready to make your investment happen? Contact our experts for a free analysis tailored to your expat situation.