A cousin of the French viager and a real alternative to bank financing, the vente à terme remains little known outside France. Here is what you need to know before selling, buying or transmitting French property through this mechanism.
The French installment sale (vente à terme) is a standard property sale where the price is paid in two parts: an initial capital payment at signing (called the bouquet, by analogy with the viager), then monthly instalments paid over a fixed duration, typically 10 to 20 years.
Unlike the viager, the instalments are not for life: their number and total amount are fixed at the signing of the notarial deed. If the seller dies before the end of the term, the remaining instalments are paid to their heirs; if the buyer defaults, a resolutive clause protects the seller.
No interest rate is applied: the installment sale is not a loan. It is a deferred payment of the sale price, framed by the notarial deed. This is a structural difference from a classic French mortgage.
The instalments are treated as a deferred payment of the sale price, not as a life annuity. The specific 70 % allowance reserved for life annuities (article 158-6 of the French Tax Code) does not apply.
Seller taxation follows the standard French rules on capital gains: full exemption on the principal residence, allowances for length of holding on secondary properties or rentals. On the buyer's side, any French wealth tax (IFI) liability is calculated on the property's value minus the outstanding capital remaining to pay.
Information provided for guidance. Every patrimonial situation is different — please validate with your French notary or tax adviser.
| Criterion | Installment sale | Viager |
|---|---|---|
| Duration of payments | Fixed (10–20 years) | For life (uncertain) |
| If seller dies before term | Instalments paid to heirs | Annuity ends |
| Taxation of payments | Deferred payment of price | Life annuity, 70 % allowance after 69 |
| Visibility for buyer | Full (duration & cost known) | Uncertain |
References: French Civil Code, articles 1583 and following on the sale contract; French Tax Code, articles 150 U (capital gains) and 158-6 (life annuities). Indicative information, please verify with your French notary.
