Investing in Reunion Island
A complete guide

Three main investment strategies

1. Long-term rental (résidence principale locative)

The safest and most common strategy. You buy a property, find a long-term tenant (3-year standard lease, 6-year for furnished), and collect monthly rent. Expected gross yield: 5–6%. Excellent in high-density zones (Saint-Denis centre, Saint-Pierre, Le Tampon). Tenant demand is structural and year-round.

2. Seasonal / holiday rental (location saisonnière meublée)

Higher nightly rates but also higher management costs and occupancy volatility. Best suited to coastal zones (Saint-Gilles-les-Bains, La Saline, L'Hermitage, Saint-Leu). Yields of 6–8% are achievable. Requires active management — we recommend via a professional concierge. LMNP tax regime applies.

3. New-build with tax incentive (Girardin / Pinel Overseas)

Off-plan purchases of new-build apartments in eligible zones, benefiting from Girardin or Pinel Overseas tax reductions. Lower net yield but significant tax benefit (up to 32% cumulative reduction under Girardin industriel social). Best suited to high-earning French taxpayers looking to optimize income tax.

The legal and tax framework

Reunion follows French law. Key points for international investors:

• Notary validates every transaction and holds escrow
• Standard notary fees: 7–8% on old properties, 2–3% on new-build
• Rental income: taxed under French income tax (progressive 0–45%), plus 17.2% social contributions for non-EU residents
• Capital gains on resale: taxable, with progressive exemption after 22 years (full exemption)
• Property tax (taxe foncière): paid annually by the owner
• Overseas tax incentives: Girardin, LMNP, Pinel Overseas, CIOP — see dedicated page

Financing options

French banks finance foreign buyers, though conditions are stricter than for residents. Typical requirements:

• Deposit: 20–30% for non-residents (vs 10% for residents)
• Proof of income (last 3 years tax statements)
• Life insurance requirement on the loan
• French notary for mortgage registration

As IOBSP-certified banking intermediaries, we can introduce you to our partner banks in Reunion. We do not earn commission from banks — our advice is independent.

Buying from abroad — the practical process

1. Define your criteria with us (budget, location, strategy, timing)
2. Pre-selection of matching properties — video tours, documentation
3. Optional visit to the island (2–3 days are enough) or remote decision
4. Written offer with standard conditions (financing, diagnostics)
5. Compromis de vente signed remotely via notarial proxy or digital signature
6. Due diligence period — financing, inspections, land registry checks
7. Signature of the final act — remote via proxy; funds transferred through notary escrow
8. Handover — keys forwarded to your local property manager

Total elapsed time: typically 2 to 3 months from offer to keys in hand. The entire process can be completed without setting foot on the island.

Rental management

For non-resident investors, we work with our partner Agence Immo Transac for local rental management: tenant sourcing, lease drafting, rent collection, maintenance coordination, annual reporting. Management fees: typically 7–8% of collected rents, plus guaranteed unpaid rent insurance if desired.

Typical budgets by strategy

Entry-level rental investment

T2 or T3 apartment in Saint-Denis, Saint-Pierre, or Le Port: €150,000 – €280,000. Expected monthly rent: €700–€1,300. Target yield: 5–6%.

Mid-range family house

Villa with land in Le Tampon, Saint-Louis, or Saint-Joseph: €300,000 – €550,000. Attractive for intermediate Pinel Overseas.

Premium coastal property

Villa with sea view or beach access in Saint-Gilles-les-Bains, Saint-Leu: €700,000 – €1.5M+. Best suited for seasonal rental + personal use.

Off-plan new-build for Girardin

T2 or T3 in approved Girardin zones: €180,000 – €350,000. Tax reduction around 25–32% of invested capital, received over the year of investment.

Our value proposition for international investors

• Bilingual service (FR / EN) — no language barrier
• Certified expertise (SNPI Real Estate Expert + CIF + IOBSP)
• Remote-purchase specialist — we are comfortable with distant signatures
• Independent advice — no hidden commission from banks or developers
• Full value chain — valuation, legal, tax guidance, financing, management — one single contact
• Local partnership — Agence Immo Transac for field execution