How can I get 100% Ownership with just 50% Investment?
Structured Ownership (Démembrement) is a proven French investment model with a track record since 2000. Buy at a significant discount today and become the full owner automatically — no extra tax, no hassle.
Contact UsWhat is Démembrement (Structured Ownership)?
In France, full property ownership (pleine propriété) is split into two separate legal rights that can be held by different parties.
Bare Ownership
Bare Ownership — The Walls
- You own the asset / the walls
- No personal use during the term
- No rental income received
Usage Rights
Usufruct — Usage Rights
- Can use or rent the property
- Receives all rental income
- Does not own the structure
Full Ownership
Full Ownership at the End
- Bare Ownership + Usage Rights combined
- Automatic at end of term
- No extra tax to recombine
How It Works In Practice
A property worth €500,000 is split between two parties for a fixed term of 12–20 years.
Year 0 — Purchase at Discount
You (the investor) buy the nue-propriété (bare ownership) at 50–70% of the full market value — e.g. €250,000 for a €500,000 property.
Years 1–12 — Sit Back
The usufruit holder (social landlord, hospitality operator or institution) manages the property throughout the term.
Read more… ▾
The usufruit holder:
- Rents the property
- Collects income
- Maintains it
The nue-propriétaire (you):
- Has no operational involvement
- Pays no tax on rental income
- Often no IFI (wealth tax) on the asset
This is a capital growth strategy, not an income strategy. Early resale of nue-propriété is possible but may be subject to market conditions and pricing adjustments.
Year 12+ — Full Ownership
The usufruit expires automatically. You become the 100% owner (pleine propriété) with no extra tax to recombine ownership. You can then sell or rent the property.
What Happens at the End?
After the agreed term (typically 12–20 years), ownership automatically consolidates — completely tax-free.
- The usufruit / usage rights expire automatically
- The nue-propriétaire becomes 100% owner (pleine propriété)
- No extra tax to "recombine" ownership
You now own a €500k+ property that you originally bought at 50% of its value.
Do Purchasers Need to Buy Under a Company?
Personal Name
This is how most démembrement deals are done.
- You're a private investor
- You want simplicity
- You're targeting long-term capital growth
- Simple purchase process
- Lower admin / accounting costs
- Clean tax treatment (no income = no income tax)
- No corporate complexity
For most clients, this is the default route.
French Company (SCI / SARL / etc.)
You can use a company, typically:
- SCI (Société Civile Immobilière) — most common
- SARL de famille — most common for property above €1.5m in value
When it makes sense: ▾
A. Family structuring / inheritance
- Parents + children hold shares
- Easier to transfer wealth progressively
- Combines nicely with démembrement of shares as well
B. Portfolio building
- If someone plans to hold multiple properties
- Cleaner to manage under one structure
C. Cross-border / tax planning
- Sometimes useful for non-French residents
- Needs proper advice (this can get complex)
For classic démembrement investments (12–20 years, no income): a company often adds more friction than value.
Investment Variables
The Structured Ownership scheme can be applied to other French property tax-advantageous schemes:
- Short-term rental management with VAT Reclaim
- Long-term rental management
- Senior Residences via commercial lease with VAT Reclaim
- Student Residences via commercial lease with VAT Reclaim
- Resort and/or Hotelier Residences via commercial lease with VAT Reclaim
At the end of the structured ownership term, the full property owner retains a VAT liability until the 20-year period is finalised.
View VAT Reclaim Explanation: Click here
*This means that in some cases in particular the Resort and/or Hotelier Residences, they need to abide the obligation to rent the property out on a short term basis until the term set by the local town hall has expired (usually 30 years) – Bonus is that after 30 years of ownership the property is capital gains tax free in France.
Financial Example
Based on a €500,000 property purchased at 50% (€250,000), with 3% estimated annual capital appreciation.
- ▸ Year 0 → Purchase at discount
- ▸ Years 1–12 → No income / no use
- ▸ Year 12 → Full ownership
- ▸ Year 12+ → Income or resale
| Investment | Property Value | Running Costs | Income | Net Income | |
|---|---|---|---|---|---|
| Year 1 | 250,000.00 € | 500,000.00 € | 0.00 € | 0.00 € | 0.00 € |
| Year 2 | 0.00 € | 515,000.00 € | 0.00 € | 0.00 € | 0.00 € |
| Year 3 | 0.00 € | 530,450.00 € | 0.00 € | 0.00 € | 0.00 € |
| Year 4 | 0.00 € | 546,363.50 € | 0.00 € | 0.00 € | 0.00 € |
| Year 5 | 0.00 € | 562,754.41 € | 0.00 € | 0.00 € | 0.00 € |
| Year 6 | 0.00 € | 579,637.04 € | 0.00 € | 0.00 € | 0.00 € |
| Year 7 | 0.00 € | 597,026.15 € | 0.00 € | 0.00 € | 0.00 € |
| Year 8 | 0.00 € | 614,936.93 € | 0.00 € | 0.00 € | 0.00 € |
| Year 9 | 0.00 € | 633,385.04 € | 0.00 € | 0.00 € | 0.00 € |
| Year 10 | 0.00 € | 652,386.59 € | 0.00 € | 0.00 € | 0.00 € |
| Year 11 | 0.00 € | 671,958.19 € | 0.00 € | 0.00 € | 0.00 € |
| Year 12 | 0.00 € | 692,116.94 € | 0.00 € | 0.00 € | 0.00 € |
| Year 13 | 0.00 € | 712,880.44 € | 5,523.00 € | 15,886.00 € | 10,363.00 € |
| Year 14 | 0.00 € | 734,266.86 € | 5,523.00 € | 15,886.00 € | 10,363.00 € |
| Year 15 | 0.00 € | 756,294.86 € | 5,523.00 € | 15,886.00 € | 10,363.00 € |
| etc. | 0.00 € | 778,983.71 € | 5,523.00 € | 15,886.00 € | 10,363.00 € |
Risks & Considerations
Who Is This For?
Suitable For
- Long-term investors (10–20+ years)
- High-income individuals seeking tax efficiency
- Hands-off investors
- Investors seeking a complement to their pension fund
Not Suitable For
- Yield-focused investors
- Short-term buyers
- Buyers wanting personal usage
Frequently Asked Questions
Explore answers to the most common questions about structured ownership in France.
Ready to Explore Structured Ownership?
Speak with our expert team to find out how Démembrement could work for your investment goals.
This page is provided for information purposes only and does not constitute financial, tax, or investment advice. Investors should seek independent professional advice before making any investment decision.