A promising
market
A promising
market
Increase in the student population
There have never been so many students in France. With higher numbers of undergraduates, longer lengths of study, and the popularity of French universities and grandes écoles abroad, we are witnessing a significant increase in the number of students in higher education: a 48.6% rise between 1990 and 2015.
Shortage of accommodation
The student residence market offers safe investment opportunities in the years to come. Despite the efforts made by public authorities, we are witnessing a shortage of suitable accommodation. Students are faced with obvious difficulties when it comes to finding accommodation, especially in large cities with several higher education institutions. To meet this ever-increasing demand, 40,000 new student lodgings would have to be built every new school year. As a result, the government has introduced tax incentives to encourage private initiatives.
A safe and profitable
investment
A safe and profitable
investment
The advantages of investing in student residences
On a market with a shortage of accommodation for rent, student residences are a perfect investment product to combine profitability and tax benefits thanks to the LMNP status (Loueur Meublé Non Professionnel, Non-professional renter of furnished properties). Investing in student residences offers many advantages:
• Enjoy attractive tax rebates
- Recovery of VAT (20%)1
- Choice of tax regime:
- LMNP Censi-Bouvard: 11% tax reduction2
- LMNP classique: up to 40 years of tax-free income 3
Role of the manager
Role of the manager
The success of an investment in student residences depends on the reliability of the manager responsible for the operation of your property, for its rental, and for transferring rents for the entire duration of the commercial lease. Choosing the right manager is therefore key to the success of your investment!
Student Factory
a 100% subsidiary of VINCI Immobilier
Student Factory
a 100% subsidiary of VINCI Immobilier
To help you invest in student residences with peace of mind, VINCI Immobilier created Student Factory: its own operating structure. In its goal towards continuous improvement and to ensure controlled development, VINCI Immobilier, the real estate subsidiary of the VINCI group, is present at every stage of the life cycle of a Student Factory residence in order to meet the expectations of communities, investors, and students.
1: In accordance with Article 261D(4)(b) and (c) of the French General Tax Code: recovery of VAT (20%) on the purchase price. VAT is definitively acquired after 20 years of operation. In the event of transfer of the asset or termination of the activity eligible for the incentive before the 20-year period, VAT regularisations will need to be made under the provisions of Article 207 of Annex II to the French General Tax Code.
2: In accordance with Article 199 septvicies of the French General Tax Code (“CGI”), the LMNP Censi-Bouvard measure allows for an income tax reduction on account of purchasing housing of which the characteristics are defined in Article 199 septvicies of the CGI, amounting to 11% of the purchase price (excluding taxes) of the property (excluding furniture) within the limits of €300,000, for any signature of a contract of sale in front of a notary done before 31 December 2018 relating to student residences. Non-compliance with the commitment to rent the premises will result in losing the tax incentives. The tax reduction rate is calculated based on the purchase price of the housing agreed for its fraction below €30,000. For an investment not exceeding €300,000 excluding taxes, tax savings amount to €33,000 over 9 years.
(3) In accordance with Article 39C of the French General Tax Code: regular and after-tax rent over periods that may generate depreciations spread over the normal period of use (i.e. for real estate assets between 20 and 40 years) in accordance with the LMNP classique measure.
