Invest in rental property without giving up your evenings.
You earn a good living, you pay a lot of tax and you have no time to chase viewings. This guide explains what rental property changes for an executive or a self-employed professional, the tax regime that really matters, the time it takes, and how Covesta takes care of the rest.
The situation
Well paid, heavily taxed, poorly invested
Four situations we encounter with most of the executives and self-employed professionals we support.
Tax that rises with your salary
In the 30% or 41% income tax bracket, every euro saved in a regulated savings account or in the capital-guaranteed euro fund of a life insurance policy earns little, and every additional euro of income is heavily taxed. You need an asset that works for you without inflating the bill.
Savings that build up with no plan
Automatic transfers, a full savings account, a dormant life insurance policy: the savings are there, but they are not invested. Time passing without a decision is the real loss.
Days that are already full
Meetings, business travel, family: browsing property portals in the evening, back-to-back viewings on Saturdays and overseeing building works do not fit into the diary.
Fear of tenants and building works
A leak on a Sunday, a tenant who stops paying, a tradesman who cannot be found: this is what holds most executives back. Delegating the management removes precisely these concerns.
Your advantage
Borrowing: the advantage you underestimate
A regular salary is worth its weight in gold to a bank. It is what allows you to buy a €150,000 asset with a fraction of that sum.
The profile banks prefer
A stable salary on a permanent employment contract (CDI) or an established self-employed practice is exactly what a bank is looking for. All other things being equal, an executive obtains long-term financing more easily, often without a significant deposit beyond the fees.
Rents count towards your borrowing capacity
Banks generally take 70% of the expected rents into account when calculating your debt-to-income ratio, which is capped at 35% including insurance. A property that lets well therefore weighs little on your budget.
You invest the bank's money
Over 25 years at most, the rents repay most of the monthly instalment. You build up wealth with a controlled monthly savings effort, rather than with your savings alone.
An asset you understand
A let home in a major city is a tangible asset with a clear yield, which depends neither on a fund manager nor on the financial markets.
The right regime
Same rent, very different tax
For a taxpayer in a high bracket, the choice of tax regime matters more than the choice of neighbourhood. Illustration based on a rent of €600 per month.
Annual rent excluding charges
€7,200
i.e. €600 per month
Tax on unfurnished letting (micro-foncier)
€2,933
41% bracket, 30% allowance, social levies included
Tax on furnished letting (actual regime)
€0
in the early years, for a property financed by a loan and depreciated
Unfurnished letting under the micro-foncier regime
Under this simplified regime, the tax authorities apply a flat-rate allowance of 30%: €5,040 remains taxable. In the 41% bracket, with 17.2% social levies (prélèvements sociaux), the tax comes to €2,933 a year. In the 30% bracket, it would be €2,379. No actual expenses are deductible.
Furnished letting under the actual regime
Under the actual regime (régime réel) of non-professional furnished letting (LMNP), loan interest, insurance, property tax, management fees, acquisition costs and depreciation of the property and its furniture are deducted from the rents. For a property financed by a loan, the taxable profit is frequently zero in the early years: tax on the rents falls to zero, and surplus depreciation can be carried forward with no time limit.
Simplified illustration. The outcome under the actual regime depends on the price, the share financed by borrowing and the property's running costs; since 2025, the depreciation deducted has been added back when calculating the capital gain on resale, and since 2026 the social levies on furnished letting profits have stood at 18.6%. An accountant confirms the regime suited to your situation. To go further: our tax page and our comparison LMNP: actual regime or micro-BIC flat-rate regime.
Time
What you do, what Covesta does
For you, an assisted investment comes down to a series of decisions. Everything else is carried out and tracked from your online portal.
| Step | You | Covesta |
|---|---|---|
| Define the project | A single one-hour meeting | Scoping of budget, cities, structure |
| Find the property | Approve a costed file | Sourcing, viewings, negotiation |
| Finance | Provide your documents, sign | Introduction to a broker, follow-up |
| Renovate and furnish | Approve the quotes | Coordination of vetted contractors |
| Let | Approve the tenant in one click | Listing, viewings, lease, inventory |
| Every month | Read the report | Rents, receipts, incidents, accounting |
The method
Covesta supports you from A to Z
A single point of contact, from the first simulation to the rent collected, and opportunities whose yield is set out for you property by property.
Scoping
Your income, your savings, your tax, your time horizon: together we define a realistic budget and the right structure, with your accountant if needed.
Search and negotiation
We source high-yield properties in our cities and present a costed file for each one, with the price negotiated on your behalf.
Coordinated renovation
Covesta coordinates the works with vetted contractors, who bear the liability and guarantees for their work, with the aim of improving the energy performance certificate (DPE) rating.
Furnishing
The home is furnished and equipped for letting, ready to welcome a tenant as soon as the works are complete.
Letting and management
Tenant selection, lease, inventory, rent collection, arrears, insurance claims: our property management takes over, with no extra charge for sensitive matters.
Reporting
Your online portal brings together the property, the rents, the documents and a monthly report, ready to use for your tax return.
Our fees are disclosed from the very first conversation: see our fee scale, our method and our property management.
Watch out
Five mistakes we often see
- 1
Buying close to home for convenience
The right property is where rental demand is strong and the price makes sense, not necessarily in your city. With delegated management, distance no longer matters.
- 2
Choosing micro-BIC for simplicity
The 50% flat-rate allowance of the micro-BIC regime seems generous. For a property financed by a loan, the actual regime with depreciation almost always does better. The extra cost of an accountant is more than covered.
- 3
Neglecting the DPE
A home rated F or G loses the right to be let, and its value with it. A renovated property rated C or D lets faster and for more, and will resell better.
- 4
Managing it yourself to save on fees
Seven per cent of the rents versus lost evenings, lease mistakes and badly handled arrears: for an executive, delegated management is rarely the wrong calculation.
- 5
Waiting for the perfect moment
Rates, prices and rules will always change. A property financed over twenty years should be judged over twenty years, not on the current quarter.
Frequently asked questions
What executives ask us
Do I need a deposit to invest?+
Banks generally ask you to cover the notary and loan guarantee fees, i.e. around 8 to 10% of the price for an existing property, and like to see a precautionary savings cushion. The rest is financed by borrowing. Your exact situation can be checked within a few days with a partner broker.
How much time will it take me?+
Around ten hours over the whole project: a scoping meeting, reading the costed files, the bank meetings, signing at the notary's office and a few quote approvals. After that, a few minutes a month to read your report.
What happens if I am transferred or change jobs?+
Nothing, as far as your investment is concerned: the property is managed remotely and the rents keep coming in. That is precisely the point of a property you do not need to live in or keep an eye on.
What budget should I plan for a first property?+
Our projects range from studios starting at around €80,000 to house shares at €250,000 to €300,000, including works and furnishing depending on the case. The simulator on the site gives you an order of magnitude for the monthly instalment and the yield in two minutes.
Who completes my rental income tax return?+
For a furnished letting under the actual regime, an accountant prepares the business tax return (liasse fiscale) every year. Covesta provides you with the management report and the necessary documents. Covesta is neither an accountant nor a tax adviser.
What if the tenant stops paying?+
Your property manager follows up from the first late payment, proposes a payment plan if the situation warrants it, then serves formal notice and initiates proceedings. Rent guarantee insurance can be taken out as an option with a partner insurer.
Do you run a business? Read the entrepreneur investor's guide instead. Do you live abroad? See investing from abroad.
General information updated on , which may change with the annual Finance Act. It constitutes neither tax advice nor investment advice: Covesta is not an accountant, and every situation should be validated with your own advisers.
Thirty minutes to find out what you can do
Your income, your savings, your tax: together we look at your real capacity, the properties that match it and what they yield. By video call, in the evening if needed.
- An estimate of your borrowing capacity
- A costed file for each property
- A single point of contact, from purchase to management